The Income Tax Department has opened online filing for the ITR-1 (Sahaj) form for Assessment Year 2025-26, making it easier for millions of salaried individuals and pensioners to submit their income tax returns. The ITR-1 form is specifically designed for resident individuals whose total income does not exceed ₹50 lakh in the financial year. It is a simplified, one-page return that caters to those with straightforward income sources, such as salary, pension, income from one house property, and interest from savings or fixed deposits.
A notable update for this year is that taxpayers with long-term capital gains (LTCG) up to ₹1.25 lakh under Section 112A, where no tax is payable, can now file using ITR-1. Previously, even small LTCG required filing ITR-2, but the new provision streamlines the process for small investors and those with minor equity gains. However, individuals with taxable capital gains, short-term capital gains, income from more than one house property, or those carrying forward losses are not eligible to use this form.
The form also excludes company directors, individuals holding unlisted equity shares, and those with foreign assets or income. Agricultural income is permitted only up to ₹5,000, and income from lottery or horse racing is not allowed under ITR-1. For those with business or professional income, or who need to claim relief for foreign taxes, other forms such as ITR-2 or ITR-3 are required.
Taxpayers can now access the updated Excel utility for ITR-1, which allows for offline data entry and validation before uploading to the portal. The deadline for filing ITR-1 for the financial year 2024-25 has been extended to September 15, 2025, giving taxpayers additional time to ensure accurate and timely submissions.
This move by the Income Tax Department is expected to simplify compliance for a large segment of taxpayers, encouraging timely and hassle-free tax return filing.
 form for Assessment Year 2025-26, making it easier for millions of salaried individuals and pensioners to submit their income tax returns.){kind=link}