ITR-1 SAHAJ for AY 2025–26 : Who Should File & Who Shouldn’t?

The Income Tax Department has officially notified ITR-1 SAHAJ for Assessment Year 2025–26 through Notification No. 40/2025 dated 29.04.2025, effective from April 1, 2025. Designed for resident individuals with straightforward income profiles, this return form is part of the department’s continued effort to simplify tax compliance.

But not everyone can file ITR-1. So, how do you know if you qualify? This explainer covers who can file ITR-1 SAHAJ, who cannot, and the important conditions that apply.

✅ Who is Eligible to File ITR-1 SAHAJ?

A Resident Individual can file ITR-1 if:

  • Total income is up to ₹50 lakh during the financial year.

  • Sources of income are limited to:

    • Salary or pension

    • Income from one house property (excluding loss carry-forward cases)

    • Income from other sources such as:

      • Interest from savings accounts

      • Fixed deposits

      • Recurring deposits

      • Family pension, etc.

    • Agricultural income not exceeding ₹5,000.

ITR-1 is also suitable for salaried employees, pensioners, and those with passive income but no complex financial affairs.

❌ Who is NOT Eligible to File ITR-1?

Even if your income is under ₹50 lakh, you cannot file ITR-1 (Sahaj) if any of the following applies:

  • You are a director in any company.

  • You have invested in unlisted equity shares during the previous year.

  • You have income from business or profession.

  • You are a resident having foreign assets or foreign income.

  • You have capital gains beyond prescribed limits, such as:

    • Long-term capital gains (LTCG) under Section 112A exceeding ₹1.25 lakh.

    • Carry-forward of capital losses from previous years.

Important: Even a small trigger like investing in foreign stocks or having a side business disqualifies you from using Sahaj.

Comparison at a Glance

Criteria Eligible (Can Use ITR-1) Ineligible (Cannot Use ITR-1)
Total Income Up to ₹50 lakh Above ₹50 lakh
Type of Income Salary, one house property, other sources, agri ≤ ₹5k Business, foreign income, capital gains beyond limit
Capital Gains Not applicable or within ₹1.25 lakh (Section 112A) Above threshold or loss carry-forward
Company Directorship Not applicable Yes
Foreign Assets/Investments Not applicable Yes
Investment in Unlisted Shares No Yes

Visual Reference: Simplified Guide from Income Tax Department

The official infographic offers a snapshot of who qualifies and who doesn’t for filing ITR-1 (Sahaj). You can scan the QR code in the image to access more tools and e-filing guidance directly from the Income Tax Department.

What’s New This Year? (AY 2025–26 Updates)

  • Streamlined eligibility norms reaffirmed for salaried individuals.

  • Enhanced cross-verification with AIS and TIS via pre-filled forms.

  • Emphasis on digital filing and verification using EVC or Aadhaar OTP.

  • Direct link to new e-filing utilities for seamless return generation.

ITR-1 SAHAJ, ITR-1 SAHAJ for AY 2025–26 : Who Should File & Who Shouldn’t?

Conclusion

ITR-1 (Sahaj) continues to be a user-friendly and efficient return form for a large number of salaried and pension-earning taxpayers. However, it is critical to assess your income sources and financial activity before choosing this form. Filing the wrong form can lead to notices, rejection, or even penalties.

Taxpayers are encouraged to review the complete notification here and consult a qualified tax professional if in doubt.

FAQs on ITR-1 (Sahaj) for AY 2025–26

Q1: Can I file ITR-1 if I earn ₹49 lakh from salary and ₹2,000 from agriculture?
✅ Yes, you can. Agricultural income is under ₹5,000 and total income is under ₹50 lakh.

Q2: I made LTCG of ₹1.5 lakh under Section 112A. Can I file Sahaj?
❌ No. You exceeded the ₹1.25 lakh threshold for LTCG, hence you are ineligible.

Q3: What if I earned interest from savings and FDs along with my salary?
✅ You’re still eligible, provided total income doesn’t exceed ₹50 lakh.

Q4: Can NRIs use ITR-1?
❌ No. ITR-1 is only for resident individuals.

Q5: I’m a resident and director in a private company with no salary. Can I use Sahaj?
❌ No. Being a company director makes you ineligible.

Q6: Can I file ITR-1 manually this year?
No. Electronic filing is mandatory, except for certain super senior citizens.