ITR: 1 (SAHAJ) Simplified: Everything You Need to Know Before Filing

As the ITR filing season has started, filing an income tax return is very important for taxpayers in India. So, to simplify the process, there are various types of ITRs. For salaried individuals in India who have a simple source of income, the income tax department prescribed ITR 1, which is known as “SAHAJ”.

This form is designed for resident individuals who earn income in the form of salary, pension, income from house property, and income from other sources, like interest. It is the most commonly used income tax return.

Eligibility and Ineligibility Criteria for Filing ITR-1:

Eligibility Criteria for Filing ITR 1: –

A resident individual whose total income is less than Rs. 50L during the financial year can file ITR 1 (SAHAJ) having:

1. Income from salary or pension: Received from employment, including allowances and perquisites.
2. Income from House Property: Income from a single house property, excluding cases where losses are carried forward from PY.
3. Income from other sources: Interest income from savings accounts, fixed deposits, recurring deposits, family pensions, etc., and agriculture income up to Rs 5000.
4. Clubbing of income: – Income of a spouse or minor child can be included.

Ineligibility Criteria for Filing ITR–1:

1. Is a Non-Resident (NR) or a Resident but Not an Ordinary Resident (RNOR).
2. Has a total income exceeding Rs. 50 lakh.
3. Has income from:

• More than one house property.
• Capital gains (short-term or long-term).
• Business or profession.
• Lottery, horse racing, or special-rate income.

1. Holds any foreign asset or has signing authority in a foreign account.
2. Has foreign income.
3. Is a director in a company.
4. Has invested in unlisted equity shares during the year.

Documents and information need to be kept. For Filing ITR-1:

1. PAN and Aadhaar
2. Form 16: issued by the employer, containing details of salary income and TDS deducted during the financial year.
3. Form 26AS and AIS: To verify TDS, TCS, advance tax payments, and other financial transactions reported to the income tax department.
4. Salary Slips: Monthly salary slips for cross-verification of salary income, allowance, and deductions.
5. Interest Income Details: – Interest certificates or statements from banks, post offices, and other financial institutions for savings accounts and fixed deposits.
6. Details of Deduction Claimed: – Investments and expenses eligible for deductions under sections such as 80C, 80D, 80G, etc.
7. Bank Account Details: – Bank account number, IFSC code, and details of all active bank accounts held during the year.
8. Home Loan Interest Certificates (if applicable): – For claiming a deduction in respect of a self-occupied or let-out house property covered under ITR-1.
9. Details of Taxes Paid: – Advance tax and self-assessment tax challans, if any.

Recent Changes in ITR-1 for AY 26-27 and Important Due Dates:

Recent Changes in ITR-1

1. Two House Properties Allowed: From AY 2026-27, the taxpayer can report income or loss from up to two house properties directly in ITR-1. Previously, only one house property was allowed.
2. Unrealised Rent Field Added: A new field has been added to report the amount of rent, which has not been realised.

Important Due Dates for ITR-1

Should you opt for the old tax regime or the new tax regime?

As Budget 2025 introduces significant changes, you can avail yourself of the benefit of Rs. 12 lakh tax-free income, and if you have salary income, then you can additionally claim Rs. 75,000 deduction under the new regime, which ultimately provides relief to small taxpayers.

You can also avail the benefit of Marginal relief where your income is slightly above Rs. 12 Lakh.

However, if you are having multiple investments eligible for deduction under the old tax regime, then you should compare both of the regimes in order to save maximum taxes.

Should you consult a professional?

As ITR 1 is the least complex and easiest to file, ITR for individuals having salary income & income from other sources. So more of the salaried employees are trying to file the ITRs on their own without giving any test checks, which might result in defaults. As it’s easy to file, one has to be very careful while filling it out, to check Form 16 issued by the employer, AIS, TIS, and Form 26AS. A mismatch between these documents leads to defective returns & delayed refunds. Hence, it’s advisable to consult any tax professional before filling out your ITR.