The Income Tax Department has released the much-anticipated Income Tax Return Form ITR 1 (Sahaj) for the Assessment Year (AY) 2025–26, applicable for income earned during Financial Year (FY) 2024–25. While the ITR 1 form remains the simplest among the available ITRs, this year it demands a significant level of additional information, particularly related to tax deductions and high-value financial transactions.
In this comprehensive guide, we’ll explain who can file ITR 1, who is disqualified from using it, new disclosure requirements, documentation needed, due dates, and how a tax consultant can help in maximizing compliance and planning your taxes efficiently.
What is ITR 1 (Sahaj)?
ITR 1, also known as Sahaj, is an income tax return form designed specifically for individual taxpayers who earn a basic income from salary, one house property, and other sources like bank interest. It offers a simple structure and is ideal for salaried individuals with limited income sources and no complex financial structures.
The form is suitable for individuals who are residents (but not “Not Ordinarily Residents”) and whose total annual income does not exceed Rs. 50 lakh.
Who Can File ITR 1 (Sahaj) for AY 2025–26?
ITR 1 (Sahaj) is a simplified income tax return form meant for resident individuals with straightforward income sources. You can file ITR 1 if you meet all of the following conditions:
Eligibility Criteria for ITR 1:
- Residential Status:
- You are an individual who is a resident in India for tax purposes.
- You are not a ‘Resident but Not Ordinarily Resident (RNOR)’ or Non-Resident (NR).
- Total Income:
- Your total income (after deductions) for the Financial Year (2024–25) does not exceed ₹50 lakh.
- Sources of Income:
Your income falls under any or all of the following heads:- Income from Salary or Pension
- Income from One House Property (excluding cases with brought-forward losses)
- Income from Other Sources (such as savings account interest, FD interest, etc.)
- Long-Term Capital Gains (LTCG) under Section 112A, up to ₹1.25 lakh (from equity mutual funds and listed shares)
- Agricultural income, if it does not exceed ₹5,000
- No Foreign Assets or Income:
- You do not own any assets or financial interests outside India.
- You have not received foreign income during the year.
Who Cannot File ITR 1?
While ITR 1 is simple and convenient, not everyone can use it. The Income Tax Department has outlined specific disqualifications.
You cannot file ITR 1 if:
- You are a Director in any company.
- You have invested in unlisted equity shares during the financial year.
- You have foreign assets or foreign income.
- You are a Non-Resident or Resident but Not Ordinarily Resident (RNOR).
- Your income includes capital gains exceeding Rs. 1.25 lakh under Section 112A.
- You want to carry forward losses under the head “Income from house property”.
- You have claimed tax deferral on ESOPs under section 191(1A).
- You have assets or financial interests located outside India.
- You have TDS deducted under section 194N (related to cash withdrawals).
- You have income from more than one house property.
- You are engaged in business or profession, even under presumptive taxation.
These exclusions are in place to ensure that only straightforward tax cases are handled through ITR 1. More complex tax profiles are directed to other forms like ITR 2, 3, or 4.
Due Date for Filing ITR 1 for AY 2025–26
The regular due date for filing ITR 1 is 31st July 2025 for most individual taxpayers (non-auditable cases).
However, this year, there has been a delay in the availability of the ITR utility, which is essential for online filing. To address this, the CBDT has issued Circular No. 06/2025, extending the due date for filing ITR 1 to 15th September 2025.
It is advised not to wait until the last minute, as the portal may experience high traffic closer to the deadline, and errors or submission delays may occur.
Documents Required for Filing ITR 1
Before starting your return filing, ensure you collect the following documents and details:
Personal Information:
- PAN card
- Aadhaar card
- Bank account details (including IFSC code)
- Details of bank deposits if exceeding Rs. 50 lakh in aggregate
Income-Related Documents:
- Form 16 (from employer)
- Salary slips (optional, but useful)
- Income statements for interest, dividends, or capital gains
- Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS)
Deduction-Related Documents:
- LIC premium receipts, PPF passbook, NSC, ELSS investment proofs
- Health insurance receipts for Section 80D
- Interest certificates from banks (for 80TTA)
- NPS account details (for 80CCD deductions)
- Home loan interest certificate (for section 24(b), 80EE, 80EEA)
- PRAN number (for NPS deduction claims)
Keeping these documents ready not only makes the filing process smooth but also ensures accurate reporting and helps avoid mismatches or notices.
Disclosure Requirements Under ITR 1 for AY 2025–26
This year’s ITR 1 form has expanded significantly in terms of data collection and disclosure requirements, especially in the area of tax deductions and high-value transactions.
1. Seventh Proviso to Section 139(1)
If you are not otherwise required to file a return but are doing so due to high-value transactions, you are expected to answer specific questions. The form asks whether you are filing under the Seventh Proviso to Section 139(1) and requires details such as:
- Did you spend more than Rs. 2 lakh on foreign travel (for yourself or others)?
- Did your electricity bill exceed Rs. 1 lakh in aggregate?
- Was your TDS + TCS more than Rs. 25,000 (or Rs. 50,000 for senior citizens)?
- Did you deposit Rs. 50 lakh or more in one or more savings accounts?
These questions are crucial for identifying potential tax evasion and expanding the taxpayer base.
2. Detailed Disclosure of Deductions
In earlier years, many taxpayers claimed deductions without valid investment. To plug this loophole, the tax department now requires:
A. Section 24(b) – Housing Loan Interest
- Name of lender
- Loan account number
- Amount of interest paid
B. Sections 80EE and 80EEA – Additional Housing Loan Deduction
- Must disclose the bank from which the loan was taken
- This information must be consistent with the disclosures under section 24(b)
C. Section 80C – Investment-based Deductions
- Name of insurer/fund/financial institution
- Identification number (e.g., policy number, certificate number)
- Amount eligible for deduction
D. Section 80CCD(1) and 80CCD(1B) – NPS Contributions
- PRAN (Permanent Retirement Account Number) is now mandatory
These disclosures are mandatory only if the taxpayer has opted for the old tax regime.
Choosing Between Old and New Tax Regime
Under the new optional tax regime (Section 115BAC), most exemptions and deductions are not allowed, but the tax slabs are lower. On the other hand, the old regime allows for all deductions and exemptions.
If you’re planning to claim deductions like 80C, 80D, 80CCD, or interest on housing loan, you must select the old tax regime.
A comparative tax calculation is advised to determine which regime is more beneficial for you. A tax consultant can provide expert insights based on your unique financial situation.
Why Consult a Tax Consultant for ITR Filing?
While filing ITR 1 may seem simple, the increased level of detail and risk of mismatches in AIS/TIS reports have made expert guidance more valuable than ever. A qualified tax advisor can assist you in:
- Verifying AIS/TIS with Form 26AS
- Identifying eligible deductions
- Avoiding duplication or mismatch of income/deductions
- Ensuring proper disclosure under the 7th proviso
- Filing accurate returns and avoiding notices
Additionally, if your salary structure includes HRA, home loan, NPS, or other complex components, professional assistance can help optimize your tax outgo.
Common Mistakes to Avoid While Filing ITR 1
- Not selecting the correct tax regime
- Failing to report interest income from savings or FDs
- Forgetting to report exempt income (e.g., agricultural income up to Rs. 5,000)
- Not verifying return after submission
Each of these errors can lead to an income tax notice, processing delays, or penalties.
Final Tips Before Filing
- Double-check the pre-filled data with your documents.
- Ensure that TDS reflected in Form 26AS matches your salary and bank income.
- Do not underreport income just to avoid tax.
- Ensure accurate reporting of high-value financial transactions.
- Don’t forget to e-verify your ITR after submission to complete the process.
Final Words
The release of ITR 1 (Sahaj) for AY 2025–26 brings with it simplicity in structure but depth in disclosure. It’s essential to understand eligibility, avoid prohibited claims, maintain documentation, and select the right tax regime to file accurately and on time.
If you’re unsure, consider taking the help of experts, who specialize in taxation, ITR filing, and tax planning services for individuals and businesses across India. A professional touch can go a long way in ensuring compliance while maximizing your eligible deductions.
