ITR-1 Form (Sahaj) - What is ITR-1, Who Should File, Applicability and How to File ITR-1 For FY 2024-25 (AY 2025-26)

In India, taxpayers can choose from seven different income tax return (ITR) forms to report their income and file taxes, one of which is ITR-1. This is the simplest form for filing an income tax return. In this article, we will provide a detailed overview of ITR-1, the eligibility criteria for filing it and the steps to file.

Latest Update

The CBDT has officially issued the ITR forms for AY 2025-26, marking the commencement of the income tax return filing process for FY 2024-25. You must report the income earned between 1st April 2024 and 31st March 2025 in these forms.

Taxpayers can now report long-term capital gains (LTCG) under Section 112A (from listed equity shares and equity-oriented mutual funds) in ITR-1, provided the total LTCG is under Rs.1.25 lakh and there are no brought-forward or carry-forward losses under the Capital gains head.

What is ITR-1?

ITR-1 is an Income tax return Form applicable for salaried individuals with a total income of up to Rs.50 lakh. It is also known as the Sahaj Form.

Who is Eligible to File ITR-1 for FY 2024-25 (AY 2025-26)?

ITR-1 is a simplified one-page form for individuals receiving income of up to Rs 50 lakh from the following sources :

• Income from salary/pension (from one or multiple employers)
• Income from one house property (excluding cases where loss is brought forward from previous years)
• Income from other sources (excluding winning from the lottery and income from race horses)
• In the case of clubbed Income Tax Returns, where a spouse or a minor is included, this can be done only if their income is limited to the above specifications.
• Long-term capital gains income up to Rs. 1.25 lakhs (having no brought-forward or carry-forward capital loss)

Aadhaar Card is mandatory for Income tax Return filing: The income tax department has made it mandatory for all taxpayers to link their Aadhaar card with their PAN on the income tax department website. Click here to read more about the consequences of not linking Aadhaar card with PAN.

Who Cannot File ITR-1 for AY 2025-26?

• An individual with an income above Rs 50 lakh.
• An individual who is either a director of a company or has
• Held any unlisted equity shares at any time during the financial year.
• Residents not ordinarily resident (RNOR) and non-residents.
• Individuals who have earned income through the following means:
  • More than one house property
  • Lottery, racehorses, legal gambling, etc.
  • Taxable capital gains (short-term and long-term) other than Long-term capital gains income up to Rs. 1.25 lakhs
  • Agricultural income exceeding Rs 5,000
  • Business and profession
  • A resident that has assets (including financial interest in any entity) outside India or is a signing authority in any account located outside India
  • Individuals claiming relief of foreign tax paid or double taxation relief under section 90/90A/91
  • Deferred income tax on ESOP received from an eligible start-up
  • Gains from Virtual Digital Assets (Crypto currency)
  • Individuals for whom TDS is deducted under section 194N

Major Changes Made in the ITR-1 Form from AY 2025-26

Inclusion of Long-Term Capital Gains (LTCG) Reporting:

Taxpayers can now report long-term capital gains (LTCG) under section 112A (from listed equity shares and equity-oriented mutual funds) in ITR-1, provided:

• The total LTCG does not exceed Rs. 1.25 lakh, and
• There are no brought-forward losses or losses to be carried forward under the capital gains head.

Previously, any capital gains required filing ITR-2; this change allows more taxpayers with a very less LTCG to use the simpler ITR-1 form.

Enhanced Deductions and Disclosures:

• Deductions under Sections 80C to 80U must now be selected from a drop-down menu in the e-filing portal, and the exact clause/sub-section must be specified. This aims to improve accuracy and transparency.
• Income from retirement accounts maintained abroad (Section 89A) has new fields for better relief tracking.

Aadhaar Enrollment ID Removed:

• The 28-digit Aadhaar Enrolment ID is no longer accepted. 
• The field now only accepts valid 12-digit Aadhaar Numbers.

Additional Column under Schedule TDS:

• An additional column has been added under the Schedule - TDS Details to specify the section under which TDS is deducted.

What are the Documents Needed to File ITR?

Documents which you need to file the ITR-1 form are:

• Form 16: Issued by all your employers for the given financial year
• Form 26AS: Remember to verify that the TDS mentioned in Form 16 matches the TDS in Part A of your Form 26AS
• Receipts: If you have not been able to submit proof of certain exemptions or deductions (such as HRA allowance or Section 80C or 80D deductions) to your employer on time, keep these receipts handy to claim them on your income tax return directly.
• PAN card
• Bank investment Certificates: Interest from bank account details – bank passbook or FD certificate

What is the Structure of the ITR-1 Form?

• 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 payments)
• Schedule-TDS (TDS/TCS details)
• Verification

Not sure which ITR form to use? Click here

How to File ITR-1 (SAHAJ) Online on Income Tax Portal?

Step 1: Visit the Income Tax e-filing portal   
Step 2: Register or Log in to your account    
Step 3: Select e-file > Income Tax Returns > File Income Tax Return    
Step 4: Select the Assessment Year as 2025-26 and the mode of filing as ‘Online’    
Step 5: To start filing new, click on ‘Start New Filing’     
Step 6: Select the applicable status, i.e. individual, HUF, and others 
Step 7: Select ITR-1 as the form type     
Step 8: Click on ‘Let’s Get Started’    
Step 9:  Select the appropriate reason and ‘continue’    
Step 10:  Now you will have to fill up 5 sections here

• Personal Information - This section requires you to provide basic details such as your full name, PAN and Aadhar number, contact information, and bank account details.
• Gross Total Income - includes all the income from all the sources you have earned income.
• Total Deductions - The Income Tax Act 1961 allows for various deductions under different sections, which you should claim accordingly. Commonly known sections for deductions include 80C, 80D, 80TTA, 80TTB, and others.
• Tax Paid - This section displays your tax payments from all sources, including TDS, TCS, Advance Tax, and Self-Assessment Tax.
• Total Tax Liability - In this section, you will find the computed tax liability based on the information provided in the previous sections. To clarify, the tax payable on the Total Income is calculated as (Income - deductions claimed - Tax paid till date). If the resulting amount is negative, it can be claimed as a refund. If it is positive, it needs to be paid as tax. 
• Verification - This section includes all that the above mentioned details are verified by the assessee.

Step 11: Double-check to ensure the summary of tax computation is correct    
Step 12: Rectify the errors, if any and complete the validation    
Step 13: E-verify the ITR

How Do I File my ITR-1 on Cleartax? 

Step 1: Log in or sign up on the Cleartax portal. 

Step 2: If you are filing with us for the first time, enter your PAN, Date of Birth, and the OTP received on your registered mobile number. Linking your PAN will help us file your return with the income tax department.

For us to pre-fill the details for you, you will have to complete another OTP verification. If you have filed with us before, you will directly see this step.

Once you enter the OTP and click on ‘Proceed’, you will see 90% of your information, like your name and income details, will all be pre-filled. You can review and edit these details if required.  

Click on ‘verify OTP’.

Step 3: Now if you scroll down, you will find details of personal information, bank details, income sources, TDS deducted by your previous employers, taxes paid. At the end of the page, you will find an option to ‘upload your Form-16’. 

You will land on Form-16 page. Here in cleartax you can now upload multiple Form 16s if you have worked with more than one employer in the previous year.

You can upload your Form16 PDF provided by your employer or if you do not have Form16, then click on ‘Continue without Form 16’.

Note: Scroll down and you can upload multiple form 16s. Click on the option ‘ Upload Another’.

Step 4: Click on continue and you can see that all of your personal information is already filled under the ‘personal Info’ tab. Verify if the details provided are correct.

Step 5: Go to the income sources section, under the Salary Income, your salary details will be automatically filled as you have uploaded your Form 16. If there are any details missing, there is an option for you to manually fill the details as well.

Step 6: Under ITR-1 individuals having only one house property will be applicable, and hence if you have rental income from one house property then you can upload the details regarding the same under the ‘rental income’ section.

Click on ‘Add Details’ and you will be lead to a page where you have to enter details regarding the income that you receive from your rental property. Continue.

Step 7: Come back to the income sources page, and if you have income from other sources, select 'Interest income'. 

Click on ‘Add Details’ and you can enter the details if you have interest income, income from deposits, interest earned from P2P transaction, interest from bond investments, PF interest, interest on income tax refund etc. 

Step 8: Now it's time to claim deductions, click on the 'Tax Savings' section. Click on ‘Add details’ and you can enter details regarding the deductions that you want to claim, TDS deducted and if any losses are carry forwarded or set off. Voila! you have now claimed all the eligible deductions.

Step 9: Click on ‘Go to next’ and your tax summary is as simple as that, here your gross income, taxable income, tax liability, tax refund and the type of ITR you are filing is displayed. Review all the details mentioned.

Also, the default tax regime for this year, according to the income tax department, is the New regime. However, the best part about filing your ITR with ClearTax is that it files your taxes under the regime that saves you maximum taxes by analysing your income and tax amount. You also have the option to compare your tax payable under both regimes and even switch to the other tax regime.  

Once you are done reviewing all the details in the summary report, click on ‘File Tax’.

Step 10: Here, you will be asked to submit a self-declaration. Only once you submit this will your ITR be filed.

Step 11: Now, THIS is the final step. Click on the ‘submit return’ button. You will land on E-verification page, e-verify the return by entering the OTP received on your mobile number. 

Note: It is essential to remember that E-verification is a very important step in ITR filing, as this process completes the process.

Step 12: That’s it, and you are done with your ITR filing! But before you leave, don’t forget to collect these exciting rewards, cashback offers, and discounts. You have more than 20+ brands to choose from. If you have refund then it will be processed to your bank account within 30-50 working days after filing your income tax return.

How to File ITR on the Government Portal?

Step 1: Go to the Income Tax e-Filing portal, https://www.incometax.gov.in/iec/foportal/

Step 2: Log in to the e-filing portal by entering your user ID (PAN), Password, and Captcha code and clicking 'Login.'

Step 3: Click on the 'e-File' menu and click the 'Income Tax Return' link.

Step 4: Click on ‘Continue’.

Step 5: Read the instructions carefully and fill in all the applicable and mandatory fields of the online ITR form.

Step 6: Choose the appropriate Verification option in the 'Taxes Paid and Verification' tab.

Step 7: Choose any one of the following options to verify the income tax return:

• I would like to e-verify
• I would like to e-verify later within 120 days from the date of filing.
• I don't want to e-verify and would like to send a signed ITR-V through normal or speed post to "Centralised Processing Center, Income Tax Department, Bengaluru - 560 500" within 120 days from the date of filing.

Step 8: Click on the 'Preview and Submit' button, Verify all the data entered in the ITR.

Step 9: 'Submit' the ITR.

Step 10: After choosing the 'I would like to e-Verify' option, e-verification can be done through any of the following methods by entering the EVC/OTP when asked for.

Step 11: The EVC/OTP should be entered within 60 seconds else, the Income Tax Return (ITR) will be auto-submitted. The submitted ITR should be verified later by using the 'My Account > e-Verify Return' option or by sending a signed ITR-V to CPC.

Major Changes Made in the ITR-1 Form from AY 2024-25

• Individuals filing ITR 1 need to indicate their preferred tax regime in the return of income. 
• The New Tax Regime is the default tax regime from this year, as per the amendments introduced by the Finance Act 2023 in Section 115BAC. For individuals, HUFs, AOPs, BOIs, and AJPs, the new tax regime will apply by default. However, those who prefer the old tax regime, they must explicitly choose to opt-out of Section 115BAC(6).
• For individuals with income (excluding income from a business or profession) need to specify their preferred tax regime in the income tax return filed for the relevant assessment year under Section 139(1).
  For individuals with income from a business or profession, the option to opt out of the new tax regime and revert to the old tax regime is available. To exercise this choice, they must submit Form No. 10-IEA on or before the due date for filing the income tax return under Section 139(1).
• An additional section, Section 80CCH, has been introduced by the Finance Act 2023. This section specifies that individuals who enroll in the Agnipath Scheme and subscribe to the Agniveer Corpus Fund on or after 01-11-2022 are entitled to a tax deduction for the entire amount deposited in the Agniveer Corpus Fund. 
  To accommodate this change, ITR form 1 has been updated to incorporate a new column which allows taxpayers to provide the relevant details regarding the amount eligible for deduction under Section 80CCH.

Not sure which ITR form to use? Click here