ITR Series: Day 8: ITR-1 Sahaj – The Easiest Route to Filing Your Income Tax Return

Overview

As the ITR season gains momentum, choosing the right form is more than just a formality—it’s your first step toward a smooth, error-free filing experience. For millions of salaried individuals and pensioners, ITR-1 (Sahaj) is the go-to form, designed for simplicity and speed.

In this article, we break down ITR-1 in the easiest way possible, covering eligibility, exclusions, latest updates, structure, and practical filing tips, so you can file your return confidently and on time.

What is ITR-1 (Sahaj)?

ITR-1 (Sahaj) is a simplified return form for resident individuals whose income sources are basic and limited. It is designed to make tax compliance hassle-free for salaried individuals and pensioners.

 

Who Can File ITR-1? (Eligibility Criteria)

1. You are a Resident Individual (not HUF or company).
2. Your total income does not exceed INR 50 lakh.
3. Your income should consist only of the following include only:
   • Salary or Pension
   • Only income from one self-occupied property is permitted.
   • Other sources (like interest income, family pension, etc.)
4. Agricultural income, if any, should not exceed INR 5,000.

🆕 Update for AY 2025–26

1. Starting from Assessment Year 2025–26, individuals with Long-Term Capital Gains (LTCG) up to INR 1,25,000 from:

• Listed equity shares, or
• Equity-oriented mutual funds

can now report such gains in ITR-1 (Sahaj)—provided all other eligibility conditions are met.

 

💡 You can now report it under ITR-1—a game-changer for small investors.  Earlier, any amount of LTCG from such assets required filing ITR-2. This move simplifies compliance for small investors with minimal capital gains.

 

2. Additional Details to be reported:

Particulars	Additional Details
House Rent Allowance  (HRA)	Place of work, basic salary, actual HRA received, and rent paid.
Section 80C	Policy number or Document Identification Number for eligible investments
Section 80D	Name of insurance company and policy number
Section 80E	Bank Name, Loan A/c no. , Sanction date, Loan amount, outstanding balance for education loan
Section 80EE	Bank Name, Loan A/c no. , Sanction date, Loan amount, outstanding balance
Section  80EEB	Bank name, loan details and vehicle registration number for EV loans
Section 80DDB	Name of the specified disease for medical treatment deduction

Who Cannot Use ITR-1? (Ineligible Categories)

 

You cannot use ITR-1 if you:

• Are a Non-Resident or Resident but Not Ordinarily Resident (RNOR)
• Have total income exceeding INR 50 lakh
• Have income from more than one house property
• Have capital gains income (short-term or long-term)
• Have business or professional income
• Have income from lottery, horse racing, or other speculative income
• Hold foreign assets or have foreign income
• Claim double taxation relief under Section 90/90A/91
• Have brought forward losses to be carried forward
• Are a Director in a company
• Have unlisted equity shares

Structure of ITR-1 Form

The ITR-1 (Sahaj) form is structured into the following key sections:

 

1. Part A – General Information

• PAN, Aadhaar, Name, Address, Mobile number, Email, etc.

2. Part B – Gross Total Income

• Salary/pension income
• House property income (only one allowed)
• Other sources (bank interest, dividend, etc.)

3. Part C – Deductions and Taxable Income

• Section 80C to 80U deductions
• Net taxable income after deductions

4. Tax Computation and Refunds

• Tax liability, TDS, advance tax, and refund details

5. Bank Details

• Mandatory for refund processing

How to File ITR-1?

ITR-1 can be filed in the following ways:

1. Online on the Income Tax e-Filing Portal
   • Suitable for users who want to auto-populate pre-filled data
   • Filing can be done directly through the portal https://www.incometax.gov.in
2. Offline (JSON Utility or Excel Utility Upload)
   • Download utility, fill offline, and upload the JSON file on the portal

Note: Verification of the return is mandatory—either through e-verification (OTP, Aadhaar, etc.) or by sending a signed ITR-V to CPC, Bengaluru.

 

Important Considerations

 

• AIS/TIS Matching: Ensure your ITR reflects the data reported in your Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) to avoid discrepancies.
• Pre-filled data: Review pre-filled salary and TDS details carefully.
• 80C-80U deductions: Keep supporting documentation handy for any deductions claimed.
• Bank details: Update account number and IFSC Code for refund credit.

Final Thoughts

If your income is simple, your tax form should be too—and that’s exactly what ITR-1 (Sahaj) offers. It’s the most accessible and user-friendly return form for salaried individuals and pensioners with uncomplicated income sources.

But don’t let the simplicity fool you—choosing the wrong form can trigger notices or even rejection under Section 139(9). So, take a moment to review your eligibility before you hit ‘submit’.

✅ File early. File correctly. File with confidence.

Let tax season be about peace of mind—not panic.

🔔 Coming Up: ITR-2: Handling Capital Gains, Rental Income & More Like a Pro!