The Income Tax Return Form ITR-1, also known as Sahaj, is specifically designed for resident individuals with straightforward income sources. It is the most commonly used form by salaried employees, pensioners, and those earning from limited other sources. If your total income does not exceed Rs.50 lakh and you earn only from salary or pension, one house property (with no loss carry-forward), and other income like bank interest or fixed deposit returns, ITR-1 is your go-to return form. The Indian government introduced this simplified version to make tax filing easier for individuals who do not have complex financial dealings. It promotes voluntary compliance, reduces errors, and ensures timely processing of refunds.
However, not everyone qualifies for this form. The Income Tax Department has laid down clear eligibility and ineligibility criteria, and even a single foreign shareholding or business income can disqualify you from using it. Therefore, understanding the scope of ITR-1 before choosing it is critical. In this article, we will break down who can and cannot use ITR-1, the due dates, common mistakes to avoid, precautions to take, and expert tips to file it smoothly and accurately. Let’s simplify your tax journey the smart way.
Who Can File ITR-1 (Sahaj)?
ITR-1 is meant for resident individuals whose total income is up to Rs.50 lakh. Here are the detailed eligibility criteria:
- Resident Individual with total income not exceeding Rs.50 lakh.
- Sources of income must be limited to:
- Salary or Pension
- Income from one house property (excluding cases with a loss carried forward)
- Income from other sources such as:
- Savings account interest
- Fixed deposits
- Interest on bonds, etc.
- Agricultural income up to Rs.5,000
This form is ideal for salaried employees and pensioners with simple financial profiles.
Who Cannot File ITR-1?
The following individuals are not eligible to use ITR-1:
- Individuals who are directors in a company.
- Those who have invested in unlisted equity shares, including startup equity, during the financial year.
- Individuals with income from business or profession.
- Non-residents or residents with foreign income or foreign assets.
- Persons with capital gains exceeding permitted limits:
- Long Term Capital Gains (LTCG) more than Rs.1.25 lakh under Section 112A
- Or having carry-forward capital losses
If any of these conditions apply, you must use forms like ITR-2, ITR-3, or ITR-4, depending on your income type.
ITR-1 Filing Due Date for AY 2025-26
The due date for filing ITR-1 for Assessment Year 2025-26 is 31st July 2025, unless extended by the Income Tax Department.
- Without audit requirement: 31st July 2025
- Late filing may lead to penalties under Sections 234A, 234B, and 234F
Precautions to Take While Filing ITR-1
Filing your return with care avoids unnecessary notices. Follow these key precautions:
- Double-check your Form 16, 26AS, and AIS for income matching
- Don’t miss reporting interest income, even if small
- Disclose exempt income like agricultural earnings
- Ensure correct PAN, Aadhaar, and bank details
- Refrain from claiming incorrect deductions under Section 80C to 80U
- File before the deadline to avoid late fees up to Rs.5,000
Checklist for Smooth ITR Filing
To streamline the process, keep the following documents ready:
- Form 16 (issued by employer)
- Form 26AS and AIS/TIS from income tax portal
- Bank statements showing interest income
- Proof of deductions under Sections 80C, 80D, etc.
- PAN, Aadhaar, and bank account details
- Details of exempt income, if any
Important Points
- The ITR-1 allows income from one employer or multiple employers.
- If your income exceeds Rs.50 lakh, even by Rs.1, you must use ITR-2 or ITR-3, based on your income type.
- Only one self-occupied or let-out property is permitted.
- Cannot claim losses on housing loan interest beyond Rs.2 lakh or carry it forward.
Final Words
Filing your Income Tax Return using ITR-1 (Sahaj) can be a hassle-free process, if you meet the eligibility conditions and follow the right precautions. This form is ideal for resident individuals with simple income structures like salary, pension, interest income, and one house property. However, even a minor detail like owning a foreign share or having business income disqualifies you from using it. Accuracy and full disclosure are key to avoiding notices, delays, or penalties. Always reconcile your income with Form 26AS and AIS, claim eligible deductions carefully, and don’t forget to verify your return within 30 days. If you’re unsure, seeking professional help can save you time and protect you from costly errors.
