Taxation in India is well classified based on the category of taxpayer. Any person falling under the purview of the Income Tax Act, 1961 has to pay tax on the income earned in a particular financial year. The categorization in taxpayers has been done to ease the compliances. The Income Tax department has categorized taxpayers into slab brackets based on their income and source of income. The department has notified 7 various forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 to date. Income Tax Return (ITR)-1 which is also known as Sahaj Form is for those individuals who have an annual income of up to Rs 50 lakhs.