π ITR Form Confusion β A Common Mistake
A businessman had two income sources: πΌ Salary from his company π Business income from his proprietorship
He filed his return in ITR-1 (Sahaj) thinking itβs the simplest option. But hereβs the problem: ITR-1 is only for salary, one house property, and other income (like interest). It cannot be used if you have: β’ Business or professional income β’ Capital gains β’ Foreign income or assets β’ Agricultural income above βΉ5,000
π Since he reported business income in ITR-1, his return was declared defective under section 139(9). This meant extra compliance, delay in processing, and unnecessary stress.
π‘ Lesson: Always match your income profile with the correct ITR form before filing. Wrong form = Defective return = More trouble later.
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