“ITR-1 (Sahaj) for FY 2024–25 (AY 2025–26): Eligibility, Applicability, and Filing Process”

• by Vaibhav
• Updated: July 15th, 2025

What is ITR 1?

“ITR-1, also known as the Sahaj Form, is an income tax return form applicable to salaried individuals whose total income does not exceed ₹50 lakh.”

Eligibility Criteria for Filing ITR-1 for FY 2024–25 (AY 2025–26)

Individuals can file ITR-1 (Sahaj) if they meet all the following conditions:

• Their income is derived from salary or pension.
• Their total annual income does not exceed ₹50 lakh.
• They earn interest income from savings or fixed deposits.
• They have long-term capital gains under Section 112A, not exceeding ₹1.25 lakh.
• They own only one house property.
• They have no income from business or profession.

Who Cannot File ITR-1 for AY 2025–26 (FY 2024–25)?

The ITR-1 (Sahaj) form cannot be used by individuals who meet any of the following conditions:

• Total income exceeds ₹50 lakh during the financial year.
• The individual is a Director in a company.
• The individual has held unlisted equity shares at any time during the financial year.
• The taxpayer is classified as a Resident but Not Ordinarily Resident (RNOR) or a Non-Resident.
• The individual has income from any of the following sources:
  • More than one house property
  • Lottery, betting, racehorse winnings, or similar income
  • Taxable capital gains, other than long-term capital gains up to ₹1.25 lakh under Section 112A
  • Agricultural income exceeding ₹5,000
  • Business or professional income

• A resident individual who:
  • Holds foreign assets or has a financial interest in any entity outside India
  • Has signing authority in any foreign account

• Individuals claiming:
  • Tax relief under Sections 90, 90A, or 91 for taxes paid abroad (Double Taxation Avoidance Agreement – DTAA)
  • Deferred tax on Employee Stock Option Plans (ESOPs) received from eligible start-ups

• Income includes gains from Virtual Digital Assets (e.g., cryptocurrency).
• TDS has been deducted under Section 194N (cash withdrawals exceeding specified limits).

Key Changes in the ITR-1 Form for Assessment Year 2025–26 (FY 2024–25)

The Income Tax Department has introduced several updates to the ITR-1 (Sahaj) form for AY 2025–26, aimed at improving usability, accuracy, and compliance. Below are the major changes:

1. Inclusion of Long-Term Capital Gains (LTCG) Reporting

Taxpayers can now report long-term capital gains under Section 112A (from listed equity shares and equity-oriented mutual funds) in the ITR-1 form, subject to the following conditions:

• The total LTCG does not exceed ₹1.25 lakh, and
• There are no capital losses brought forward or to be carried forward.

Previously, even nominal LTCG required filing ITR-2. This revision allows more taxpayers to benefit from the simplified ITR-1 form.

2. Enhanced Disclosure and Deduction Reporting

• Section-wise deduction selection (80C to 80U): Taxpayers must now select the exact section and sub-section while claiming deductions. This will be facilitated via a drop-down menu on the e-filing portal, improving transparency and reducing filing errors.
• Foreign retirement income (Section 89A): New fields have been introduced to track relief claimed for income from retirement accounts maintained outside India, helping taxpayers report such income with greater clarity.

3. Aadhaar Enrollment ID Removed

• The ITR-1 form will no longer accept the 28-digit Aadhaar Enrolment ID.
• Only a valid 12-digit Aadhaar number can be used to complete the return filing process.

4. New Column in TDS Schedule

• An additional column has been added under Schedule TDS to specify the section under which TDS has been deducted.
• This update is intended to offer a clearer breakdown of tax credits and reduce mismatches in TDS reporting.

These changes aim to simplify compliance for eligible taxpayers while improving the accuracy of information submitted to the tax department.

Essential Documents Required for Filing ITR-1 (Sahaj) for FY 2024–25 (AY 2025–26)

To ensure a smooth and accurate income tax return filing process, it is important to keep the following documents readily available before filing ITR-1:

1. Form 16

• Issued by your employer(s) for the applicable financial year.
• It provides a detailed summary of salary paid and tax deducted at source (TDS).

2. Form 26AS

• This is a consolidated tax credit statement available on the Income Tax Department’s portal.
• Verify that the TDS figures in Form 16 match those reported in Part A of Form 26AS.

3. Proof of Deductions and Exemptions

• If you were unable to submit documents to claim deductions (e.g., under Sections 80C, 80D, or house rent allowance) to your employer, you can still claim them while filing your return.
• Keep investment proofs, premium receipts, tuition fee slips, or rent receipts ready.

4. PAN Card

• A valid Permanent Account Number (PAN) is mandatory for filing your income tax return.

5. Bank and Interest Income Details

• Bank passbooks, fixed deposit certificates (FDRs), or interest statements from banks are necessary to report income from savings and fixed deposits.

Ensuring that these documents are in place before filing will help you avoid errors, omissions, and potential notices from the Income Tax Department.

Structure of the ITR-1 Form (Sahaj)

• Part A – General Information
• Part B – Gross Total Income
• Part C – Deductions and Taxable Total Income
• Part D – Computation of Tax Payable
• Part E – Other Information (Bank Account Details)
• Schedule IT – Details of Advance Tax and Self-Assessment Tax
• Schedule TDS – TDS/TCS Details
• Verification

Step-by-Step Guide to Filing ITR-1 (Sahaj) Online for AY 2025–26

Filing your Income Tax Return (ITR) through the Income Tax Department’s e-filing portal has become a streamlined digital process. Here is a detailed walkthrough to file ITR-1 (Sahaj) for the financial year 2024–25 (Assessment Year 2025–26):

Steps to File ITR-1 Online:

Visit the Official Portal - Go to the Income Tax e-Filing Portal. https://www.incometax.gov.in/iec/foportal/

• Log In / Register - Use your PAN credentials to log in. New users must complete the registration process.
• Navigate to Filing Section - Click on: e-File > Income Tax Returns > File Income Tax Return
• Choose the Assessment Year - Select AY 2025–26 and choose ‘Online’ as the filing mode.
• Initiate New Filing - Click ‘Start New Filing’ to begin.
• Select Filing Status - Choose the applicable category: Individual, HUF, or Others.
• Choose the Form Type - Select ITR-1 (Sahaj) as the applicable form.
• Proceed to Filing - Click ‘Let’s Get Started’ and continue after selecting the applicable reason for filing.

Sections to Complete in ITR-1:

• Personal Information - Provide your PAN, Aadhaar, contact details, and bank account information.
• Gross Total Income - Declare all income earned from various sources including salary, house property, and other income.
• Total Deductions - Enter deductions under relevant sections (e.g., 80C, 80D, 80TTA) as applicable.
• Tax Paid - Review tax already paid, including TDS, TCS, Advance Tax, or Self-Assessment Tax.
• Total Tax Liability - Based on your income, deductions, and taxes already paid, this section will auto-calculate your remaining liability or refund.
• Verification - Confirm the accuracy of all information entered. This is a self-declaration by the taxpayer.

Final Steps:

• Review Computation - Carefully verify the tax summary for accuracy.
• Resolve Errors - Address any validation issues or missing details.
• E-Verify Your Return - Complete the process by e-verifying through Aadhaar OTP, net banking, or other available methods.

By following these steps, eligible taxpayers can easily and accurately file their ITR-1 online. Always ensure that all data is correct and supported by relevant documentation to avoid notices or delays in processing

Ensuring timely filing and verification of your ITR helps prevent processing delays and ensures timely issuance of refunds, if any.

Key Updates to ITR-1 Form for Assessment Year 2024-25

The Income Tax Department has introduced several important changes to the ITR-1 (Sahaj) form for AY 2024-25, as per amendments brought in by the Finance Act, 2023. These changes impact the way individuals choose their tax regimes and claim deductions. Below are the key updates:

1. Selection of Tax Regime is Now Mandatory

• Taxpayers are now required to indicate their preferred tax regime—either the new regime or the old regime—while filing their return.
• From AY 2024-25, the New Tax Regime is the default for individuals, Hindu Undivided Families (HUFs), Associations of Persons (AOPs), Bodies of Individuals (BOIs), and Artificial Juridical Persons (AJPs), in accordance with Section 115BAC as amended.

2. Opt-Out Procedure for Old Tax Regime

• Salaried individuals and those without business income must explicitly state their preference for the tax regime in the ITR filed under Section 139(1).
• Taxpayers with business or professional income must file Form 10-IEA to opt out of the new tax regime and revert to the old one. This form must be submitted on or before the due date of filing the return under Section 139(1).

3. Introduction of Deduction under Section 80CCH (Agniveer Corpus Fund)

• The Finance Act, 2023 introduced Section 80CCH, which allows a full tax deduction for contributions made to the Agniveer Corpus Fund.
• This applies to individuals who have enrolled under the Agnipath Scheme on or after 1st November 2022.
• A new field has been incorporated in ITR-1 to capture the details of the eligible amount contributed under this section.

These updates are aimed at aligning the income tax return process with the latest tax law amendments, enhancing clarity and compliance for individual taxpayers.

Disclaimer: The views and information shared here are for general awareness only. Please seek professional advice before making any financial or legal decisions.