Under rule 164 of the Income-tax Rules, 2026, which of the following individuals cannot use Form SAHAJ…
Rule 164 of the Income-tax Rules, 2026 (formerly rule 12 of the 1962 Rules) governs return forms for the tax year commencing on 1st April, 2026. Under rule 164(2), Form…
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Under rule 164 of the Income-tax Rules, 2026, which of the following individuals cannot use Form SAHAJ (ITR-1) to furnish the return of income for the tax year 2026-27?
A. An individual who is a director in a company.
B. An individual who has any asset located outside India.
C. A resident individual whose total income, consisting only of salary, does not exceed Rs 50,00,000.
D. An individual who has income from any source outside India.
E. An individual who has held any unlisted equity share at any time during the tax year.
Answer and explanation
Correct answer B
Rule 164 of the Income-tax Rules, 2026 (formerly rule 12 of the 1962 Rules) governs return forms for the tax year commencing on 1st April, 2026. Under rule 164(2), Form SAHAJ (ITR-1) is for an individual who is resident (other than not ordinarily resident) with income from salary or family pension, house property (not more than two houses, without losses), other sources (other than lottery winnings or race horses) and long-term capital gains under section 198 not exceeding Rs 1,25,000. Rule 164(3) bars an individual who has assets located outside India (B), has income from any source outside India (D), is a director in any company (A), has held any unlisted equity share at any time during the tax year (E), or has total income exceeding Rs 50 lakh, among others. A resident salaried individual with total income not exceeding Rs 50 lakh (C) can use ITR-1, so every option containing C is wrong; the answer is A, B, D and E only.
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