If you are a government employee or a retired person, here’s a reason to be happy—India’s Income Tax Department has introduced modifications in the ITR-1 form for the AY 2025–26 (FY 2024–25). The new format is simpler to complete to report your income and tax received from April 1, 2024, to March 31, 2025.
Understanding ITR-1 (Sahaj): Who Should Use It and Why It Matters
ITR-1, also known as the Sahaj form, is a simple, single-page income tax return designed for salaried individuals, retirees, and people earning modest interest from savings accounts. If your total annual income is Rs 50 lakh or less, this is your form.
Who Can File ITR-1?
If you are receiving income in the form of salary or pension, you can file this form.
Even if you earn rental income from a house, occupied by yourself, or bank interest or fixed deposits, this form is for you. You can also report long-term capital gains up to Rs 1.25 lakh on shares or equity-linked units of mutual funds.
Even if your minor children or your spouse have income in these tax brackets, report it under your own income and use this form anyway. Keep in mind that connecting your Aadhaar to your PAN card is compulsory for the form to be valid.
Who Should Not File ITR-1?
If your earnings exceed Rs 50 lakh, or you hold a director’s position in a company, or own unlisted company shares, then you’re not eligible to file ITR-1. And if you receive income from two or more houses, gambling, significant capital gains or losses, agricultural income over Rs 5,000, or business income, then you need to select some other form. NRIs and individuals with foreign bank accounts or foreign assets cannot use this form. Gains on cryptocurrency or advance tax on ESOP are some more reasons to not choose ITR-1.
What’s New in ITR-1 This Year?
The biggest change is that you can now add long-term capital gains of up to Rs 1.25 lakh in ITR-1, previously you required ITR-2. The form now includes a dropdown option to select tax exclusions, making 80C to 80U deductions simpler. There is an additional section for foreign retirement accounts, and Aadhaar enrolment ID is not accepted anymore—only the 12-digit Aadhaar in full will do. Furthermore, you have to specify under which section TDS (Tax Deducted at Source) has been deducted.
Understanding the Form Structure
The form contains sections: first general information such as your name, PAN, and Aadhaar. After that, you report income from your job, property you own, and other
sources.
Then you have exemptions and taxable income, and then tax calculation. Then there
is bank details and advance or self-assessment tax paid details, then TDS details. Then you check the form before submission.
How to File ITR-1 Online?
Start by visiting the Income Tax e-filing website. Sign in or create an account if you’re
a new user. Navigate to the e-File menu, choose Income Tax Returns, and click on File Income Tax Return. Choose the assessment year 2025-26 and select the option to file your return online. Click ‘Start New Filing,’ choose your status as Individual or HUF, and then ITR-1 form. Click ‘Let’s Get Started’ and choose why you are filing—original or revised return.
Enter all details carefully, cross-check all the details and subsequently e-verify your return via OTP or Aadhaar validation.
If you have income as stated above, filing ITR-1 is the easiest manner to file your return. Getting your return filed on this simple form and before the due date avoids future complexities. So avail this simple form and be relieved of tension!