This Return Form is to be used by an individual who is a resident other than not ordinarily resident, whose total income for the assessment year 2021-22 does not exceed Rs. 50 lakh and who has income under the following heads:-

(a) Income from Salary/ Pension; or

(b) Income from One House Property; or

(c) Income from Other Sources.

(d) Agricultural Income (Up to INR 5,000)

A. Salary/Pension: 

Salary refers to the remuneration/consideration that a person receives for the services that he/she renders under a contract of employment. For an amount to be considered salary, the existence of an employer-employee relationship is must. As per the Income Tax Act, 1961, the following are included in salary income:

• wages;

• annuity or pension;

• gratuity;

• fees, commissions, perquisites or profits in lieu of or in addition to any salary or wages;

• advance of salary;

• payment received by an employee in respect of any period of leave not availed of by him;

• annual accretion to the balance at the credit of an employee participating in a recognised provident fund

• aggregate of all sums that are comprised in the transferred balance in a recognised provident fund, 

• contribution made by the Central Government or Employer under a pension scheme referred to in section 80CCD;

B. One House Property 

If the taxpayer is the owner of a property from which he/she is earning rent, the rent proceeds become taxable. However, if the taxpayer is using the property for running some business or profession, the same would be taxable under the heading “Income from Business or Profession.”

C. Other sources

This includes Interest, dividend income but does not include income earned from winning lottery or race horses

D. Agricultural Income 

The agricultural Income should not exceed INR 5,000)

Who is not eligible to use ITR-1 Form?

A. This Return Form should not be used by an individual who – 

(a) is a Director in a company; 

(b) has held any unlisted equity shares at any time during the previous year; 

(c) has any asset (including financial interest in any entity) located outside India; 

(d) has signing authority in any account located outside India; or 

(e) has income from any source outside India.

(f) TDS has been deducted under section 194N (Cash withdrawal of more than One crore)

(g) has deferred tax on ESOP

B. This return form also cannot be used by an individual who has any income of the following nature during the previous year:- 

(a) Profits and gains from business and professions; 

(b) Capital gains; 

(c) Income from more than one house property; 

(d) Income under the head other sources which is of following nature:- 

(i) winnings from lottery; 

(ii) activity of owning and maintaining race horses; 

(iii) income taxable at special rates under section 115BBDA or section 115BBE; 

(e) income to be apportioned in accordance with provisions of section 5A; or 

(f) agricultural income in excess of ₹5,000. 

C. Further, this return form also cannot be used by an individual who has any claims of loss/deductions/relief/tax credit etc. of the following nature:- 

(a) any brought forward loss or loss to be carried forward under the head ‘Income from house property’; 

(b) loss under the head ‘Income from other sources’; 

(c) any claim of relief under section 90 and/or section 91; 

(d) any claim of deduction under section 57, other than deduction under clause (iia) thereof (relating to family pension); or 

(e) any claim of credit of tax deducted at source in the hands of any other person. 

Income Tax Rates for Individuals (AY 2021-22)

Note: A resident individual having taxable income upto Rs 5,00,000 will get a tax rebate of Rs.12,500 or the amount of tax payable (whichever is lower)

Note: A resident individual having taxable income upto Rs 5,00,000 will get a tax rebate of Rs.12,500 or the amount of tax payable (whichever is lower)

New Tax regime from AY 2021-22

An option to pay lower tax shall be available only if the Income is calculated without claiming the following exemptions and deductions:

Special Rate under New Tax regime for Individuals & HUF (AY 2021-22)