Which salaried individuals cannot file ITR-1 for FY 2018-19.

The basic ITR form for most salaried people is ITR-1.

The new ITR-1 form is applicable for salaried individuals with total income up to Rs 50 lakh from salary, one house property, and other sources such as interest income, etc.

There are certain situations where ITR-1 will not be applicable to salaried individuals for the financial year 2018-19 or assessment year 2019-20. Here are those situations :-

1. If your total income is more than Rs 50 lakh;

2. If any income arises from more than one house property;

3. If your agricultural income exceeds Rs 5,000 per year;

4. If you are a director of a company;

5. If you have held any unlisted equity shares at any time during the financial year;

6. If you want to claim a deduction against “income from other sources” (other than family pension). This can include activity of owning and maintaining race horses, or winning a lottery;

7. If any resident and ordinarily resident of India has assets (including financial interest in any entity) outside India or signing authority in any account located outside India. Basically, having income from any source outside India.

8. If you have received dividend income taxable at special rates (example exceeding Rs 10 lakh per annum from Indian companies);

9. If you have received income from capital gains (short-term and long-term);

10. If you have claimed relief of foreign tax paid or double taxation relief under section 90 and/or section 91;

11. If you have earned income under the head business and profession;

12. Residents not ordinarily resident and non-residents cannot file returns using ITR -1.


What should individuals do in such a situation?

A resident salaried individual with income only from salary less than Rs 50 lakh a year will be eligible to file ITR -1.

However, if the salaried individual, additionally received income from any capital gains and/or has received income from agricultural sources, then he/she is not eligible to file ITR-1 for FY 2018-19. Instead, these salaried individuals need to file another ITR form.

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