Who Should File ITR-1 for AY 2025-26? Key Changes, Eligibility, and Filing Steps

The Income Tax Department has released the ITR-1 (Sahaj) form for Assessment Year 2025–26, marking the start of the income tax return filing process for Financial Year 2024–25. This simplified return is meant for salaried individuals and pensioners with total annual income up to Rs 50 lakh.

Who Can File ITR-1?
ITR-1 applies to individuals earning from salary or pension, one house property (excluding brought-forward losses), and other sources such as interest income. It also includes those with long-term capital gains (LTCG) under ₹1.25 lakh from listed equity shares or mutual funds, provided there are no carry-forward losses. Those with clubbed income (e.g., spouse or minor child) may also file ITR-1 if the income meets the same conditions.

Who Cannot File ITR-1?
Individuals with income above ₹50 lakh, income from more than one house property, capital gains exceeding ₹1.25 lakh, or earnings from business or profession are excluded. Other disqualified categories include company directors, holders of unlisted equity shares, RNORs and non-residents, and those holding foreign assets or claiming double taxation relief.

Major Changes in ITR-1 This Year
One of the key updates is the inclusion of LTCG reporting under Section 112A up to ₹1.25 lakh, making it easier for small investors to use ITR-1 instead of switching to ITR-2. Also, deduction claims under Sections 80C to 80U now require dropdown selection of specific clauses. Aadhaar enrollment IDs are no longer accepted—only valid 12-digit Aadhaar numbers will be allowed. Additionally, a new column has been added under the TDS schedule to specify the section under which tax was deducted.

Documents Required for Filing
To file ITR-1, keep the following documents ready: Form 16 from employers, Form 26AS to reconcile TDS, proof of deductions (if not submitted to the employer), PAN card, Aadhaar card, and interest income certificates or bank passbooks.
Step-by-Step Process to File ITR-1 Online

Filing can be done on the income tax e-filing portal. After logging in, users must select the appropriate AY (2025-26), choose the online mode, and pick ITR-1 as the form. The filing involves entering personal details, declaring income, deductions, and taxes paid, and verifying the return before submission. Platforms like ClearTax also offer guided filing options.

Read This Also: New Income Tax Rules: Capital Gains, Share Buybacks, and TDS Codes - What New ITR Rules Mean for You