The Income Tax Department has revised the ITR-1 (Sahaj) form for AY 2025-26, simplifying tax filing for resident individuals with straightforward income sources and small capital gains. Here are the eligibility criteria for the same.
1 / 6The Income Tax Department has notified the revised ITR-1 (Sahaj) form for AY 2025–26, applicable to income earned in Financial Year 2024–25. This simplified return form is designed for resident individuals with straightforward income sources.
2 / 6ITR-1 (Sahaj) is applicable to resident individuals (excluding not ordinarily residents) whose total income does not exceed ₹50 lakh and comprises income from the following sources: salary or pension, income from one house property (excluding cases with carried forward losses), income from other sources such as interest from savings accounts, fixed deposits, family pension, or dividends, and agricultural income up to ₹5,000.
3 / 6A significant update in the revised ITR-1 form is the inclusion of a dedicated section to report long-term capital gains (LTCG) under Section 112A that are not chargeable to income tax. Taxpayers with LTCG up to ₹1.25 lakh from listed equity shares, equity mutual funds, or business trusts can now file ITR-1, streamlining the process for small investors.
4 / 6Certain individuals are not permitted to use the ITR-1 form. This includes those who are directors in a company, have invested in unlisted equity shares, have income from business or profession, possess foreign assets or foreign income, or have capital gains exceeding ₹1.25 lakh under Section 112A. Additionally, cases involving short-term capital gains, LTCG from immovable property, or carried forward capital losses are excluded.
5 / 6The revisions in the ITR-1 form aim to simplify the tax filing process for small taxpayers, particularly those with minimal capital gains. By allowing the inclusion of exempt LTCG under Section 112A within the ITR-1 form, the compliance burden is reduced, eliminating the need for these taxpayers to file more complex forms like ITR-2.
6 / 6Taxpayers can file their returns using the revised ITR-1 form through the Income Tax Department’s e-filing portal. Individuals should ensure accurate reporting of all income sources and to utilise the new sections appropriately.
