Filing your Income Tax Return (ITR) is one of the most important financial tasks every year, and for Assessment Year 2025-26, learning how to file ITR-1 online remains the easiest and most efficient way for eligible salaried individuals in India. ITR-1, commonly known as Sahaj, is a simplified one-page form specifically designed for resident individuals whose total income does not exceed ₹50 lakh from standard sources such as salary, pension, one house property, and other sources like bank interest, dividends, or family pension.
In 2026, the Income Tax Department’s e-Filing portal has made the ITR-1 filing online AY 2025-26 process even more user-friendly with extensive pre-filled data from Form 16, Form 26AS, Annual Information Statement (AIS), and other sources. However, important updates—like the New Tax Regime as the default option and the inclusion of limited Long Term Capital Gains (LTCG) reporting—require careful attention.
Timely and accurate file ITR-1 online not only helps you avoid late fees and interest but also serves as proof of income for visas, loans, or tenders. A clean ITR record strengthens your overall financial profile, positively impacting your CIBIL MSME Rank when applying for business loans, unsecured business loans, or loan against property.
This comprehensive ITR-1 online user manual walks you through eligibility, pre-requisites, key changes, and a detailed step-by-step guide to e-filing ITR-1 on the official portal.
Who is Eligible for ITR-1 (Sahaj) in AY 2025-26?
ITR-1 eligibility 2025-26 is limited to resident individuals (Indian citizens residing in India for 182 days or more in the financial year) who meet these criteria:
- Total income up to ₹50 lakh.
- Income from:
- Salary or pension (including allowances as per Form 16).
- One house property (no brought-forward or carried-forward losses).
- Other sources (interest from savings/FD, dividends, family pension, etc.).
- Agricultural income up to ₹5,000.
New addition: Long Term Capital Gains (LTCG) under Section 112A (on equity shares or equity-oriented mutual funds) up to ₹1.25 lakh (exempt from tax).
You cannot use ITR-1 if:
- You have income from more than one house property.
- Capital gains exceed ₹1.25 lakh or are from other sources.
- You hold foreign assets or have foreign income.
- You have business/professional income (use ITR-3/ITR-4).
- Total income exceeds ₹50 lakh.
If ineligible, the portal will prompt you to switch forms. Always verify eligibility first—similar to checking minimum CIBIL score for loan against property.
Pre-Requisites to File ITR-1 Online
Before starting step by step ITR-1 filing, ensure you have:
- PAN-linked mobile and email for OTPs.
- Valid 12-digit Aadhaar number (Aadhaar Enrolment ID no longer accepted).
- Registered account on incometax.gov.in (PAN is User ID).
- Pre-validated bank account (via net banking/e-Pay Tax) for refunds.
- Documents: Form 16 (from employer), Form 26AS/AIS (download from portal), bank statements, interest certificates, investment proofs (80C/80D), house property details.
Gather everything in advance to avoid last-minute rush—much like preparing documents for working capital loans.
Major Changes in ITR-1 for AY 2025-26
The form has evolved to align with recent budget changes:
- New Tax Regime as Default: Lower tax slabs but fewer deductions. Opt out explicitly for Old Regime if you have high deductions (80C, 80D, etc.).
- LTCG Reporting: First time inclusion of exempt LTCG up to ₹1.25 lakh under Section 112A—no tax, but mandatory disclosure.
- Limited Deductions in New Regime: Only employer NPS contribution (80CCD(2)) and Agnipath scheme (80CCH).
- Enhanced pre-filling from AIS, SFT (Statement of Financial Transactions), and TDS data.
These changes simplify filing but require regime choice awareness. For tax planning, use our EMI calculator to estimate savings.
Detailed Step-by-Step Guide: How to File ITR-1 (Sahaj) Online
Use Online Mode. Log in to incometax.gov.in.
Step 1: Start Filing and Personal Information Verification
- Go to e-File > Income Tax Returns > File Income Tax Return.
- Select AY 2025-26, ITR Form: ITR-1 (Sahaj), Mode: Online.
- Choose filing type (Original/Revised/Belated).
- Verify pre-filled personal details: Name, PAN, Aadhaar, address, mobile/email.
- Select “Nature of Employment” (Government, PSU, Pensioners, Others).
- Choose Tax Regime: New (default) or Old (opt-out checkbox).
- Confirm at least one pre-validated bank account (add/validate if needed).
Tip: Update profile if details changed—ensures smooth e-verification.
Step 2: Enter Gross Total Income Details
The portal pre-fills much from Form 16/AIS:
- Salary/Pension: Gross salary, exemptions, allowances—match Form 16.
- House Property: Self-occupied (deduct interest up to ₹2 lakh) or let-out (rental income minus expenses).
- Other Sources: Interest (savings/FD—pre-filled), dividends, family pension.
- Capital Gains: New section for LTCG (Section 112A) up to ₹1.25 lakh—enter if applicable.
Auto-computation shows head-wise totals. Cross-verify with AIS to avoid notices—similar to reconciling input tax credit.
Step 3: Claim Deductions
Deductions vary by regime:
New Regime (Default):
- Automatic standard deduction ₹75,000 (salaried).
- Manual entry for employer NPS (80CCD(2)) and Agnipath (80CCH).
Old Regime:
- Full deductions—80C (₹1.5 lakh investments), 80D (health insurance), 80G (donations), 80TTA (savings interest), etc.
Portal pre-fills some; enter others manually. Opting Old Regime may reduce tax if deductions are high.
Step 4: Verify Tax Paid and Compute Liability
- Pre-filled: TDS (Form 16/interest), TCS, Advance Tax, Self-Assessment Tax.
- Match with Form 26AS/AIS.
- System calculates total tax, rebate (u/s 87A up to ₹25,000 in New Regime), and final liability/refund.
Pay any shortfall online before submission.
Step 5: Validation, Preview, Submission & e-Verification
- Validate each section—fix errors (red flags).
- Preview entire return—check computations.
- Submit (generate JSON download for records).
- e-Verify: Preferred methods—Aadhaar OTP (instant), Net Banking, DSC. Alternatives: Bank ATM, post ITR-V.
- Receive Acknowledgement (ITR-V) with ARN.
Filing complete only after e-verification (within 30 days). Belated filing possible till December 31 with fees.
Tips for Error-Free ITR-1 Filing
- Use pre-filled data but always verify.
- Report all bank interest (even small amounts).
- Don’t forget regime choice.
- e-Verify immediately to avoid ITR-V posting hassle.
- Save JSON/acknowledgement.
Common issues lead to notices—handle like common GST notices.
Benefits of Timely ITR-1 Filing
- Penalty avoidance (₹1,000–₹5,000 late fee).
- Faster processing/refunds (credited to validated account).
- Strong income proof for overdraft facilities or machinery loans.
- Visa/loan applications strengthened.
FAQs on Filing ITR-1 (Sahaj) Online AY 2025-26
How to file ITR-1 online for AY 2025-26?
Log in to incometax.gov.in, select ITR-1 Online, verify details, enter income/deductions, compute tax, submit, and e-verify via Aadhaar OTP.
Who can use ITR-1 Sahaj online filing?
Resident individuals with ≤ ₹50 lakh income from salary, one house property, other sources, and LTCG up to ₹1.25 lakh.
Is New Tax Regime mandatory in ITR-1 2025-26?
Yes—default; opt out for Old Regime.
Can I report LTCG in ITR-1?
Yes—up to ₹1.25 lakh under Section 112A.
What deductions are allowed in ITR-1 New Regime?
Standard ₹75,000 (salaried), employer NPS (80CCD(2)), Agnipath (80CCH).
Is bank account validation mandatory?
Yes—for refunds; pre-validate at least one.
What if errors after submission?
File revised return before deadline.
How to e-verify ITR-1 return?
Aadhaar OTP (fastest), Net Banking, or post ITR-V.
Conclusion
With this detailed ITR-1 online user manual, filing ITR-1 (Sahaj) online for AY 2025-26 is straightforward and secure on the e-Filing portal. Leverage pre-filled data, choose your regime wisely, verify thoroughly, and e-verify promptly for peace of mind.
Accurate ITR filing reflects financial discipline and supports credit health for future goals. If your return shows surplus for investment, explore growth options like cash credit or fast business loan approval.
Contact us today for expert help with ITR filing, tax planning, or customized financing solutions. Our team ensures you maximize refunds and opportunities.
