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ITR-1 Sahaj Income Tax Return

Indian Income Tax Return for Salaried Individuals

Medium ~30 min TaxIndiaIncome TaxITR

/ What is this form?

ITR-1, popularly called 'Sahaj' (meaning 'simple' in Hindi), is the most commonly used income tax return form in India, filed by tens of millions of salaried employees each year. It is suitable for resident individuals (not Non-Resident Indians) whose total income from salary, one house property, and other sources (primarily interest income) does not exceed ₹50 lakh in the financial year.

India's income tax department has significantly automated the filing process — Form 26AS and the Annual Information Statement (AIS) are pre-populated with data reported by employers, banks, and other institutions. The e-filing portal at incometax.gov.in pre-fills most salary data from Form 16, making the process increasingly straightforward for straightforward cases.

The income tax year in India runs April 1 to March 31. Returns for a financial year are filed in the subsequent assessment year — for FY 2024-25 income, the return is filed by July 31, 2025. India introduced the New Tax Regime as the default from FY 2023-24, offering lower slab rates without deductions, while the Old Regime with its numerous deductions and exemptions remains available by explicit selection.

/ Who needs this form?

  • Salaried employees with annual salary income up to ₹50 lakh
  • Pensioners with pension income from one source and other income like interest
  • Individuals with one self-occupied or let-out house property and salary income
  • Anyone with bank interest, fixed deposit interest, or dividend income alongside salary
  • Employees wanting to claim tax refunds for excess TDS deducted by employers

/ What you need before you start

PAN (Permanent Account Number) — mandatory for all income tax filings
Aadhaar number — mandatory for e-filing, must be linked to PAN
Form 16 from employer(s) — Parts A and B
Form 26AS and Annual Information Statement (AIS) from income tax portal
Bank account details (IFSC, account number) for refund
Interest certificates from all banks (savings, fixed deposits)
Section 80 investment proofs (80C, 80D, 80G) if using Old Tax Regime

/ Step-by-step guide

1 Check Eligibility for ITR-1
ITR-1 (Sahaj) can only be used by resident individuals with: salary income up to ₹50 lakh; one house property (not multiple); other income sources like bank interest or fixed deposits; agricultural income up to ₹5,000. You cannot use ITR-1 if you have: capital gains, more than one house property, foreign income or assets, income from business or profession, or directorship in a company.
2 Collect Required Documents
Gather before filing: Form 16 from your employer (Part A shows TDS deducted, Part B shows salary breakup); Form 26AS (Tax Credit Statement) from traces.gov.in showing all TDS deducted on your behalf; Annual Information Statement (AIS) from incometax.gov.in showing all your financial transactions reported to income tax; Bank interest certificates or passbooks.
3 Choose Tax Regime: Old vs New
Since 2023-24, the New Tax Regime is the default. Old Regime allows deductions (80C: ₹1.5L for PF/PPF/LIC/ELSS; 80D: health insurance; HRA; LTA; standard deduction ₹50,000). New Regime has lower slab rates but no deductions. Compare both and select the one that results in lower tax.
4 File on the Income Tax Portal
Log in at incometax.gov.in with your PAN. Most salary data is pre-filled from your employer's TDS returns. Verify pre-filled data, add any income not shown (interest income, rental income), and select your tax regime. Complete Schedule 80 deductions if using Old Regime.
5 Verify and Submit
After filing, verify the return within 30 days using one of: Aadhaar OTP (instant), Electronic Verification Code (EVC) via bank ATM, or by sending a signed physical ITR-V to CPC Bengaluru by post. An unverified return is treated as not filed. Tax refunds are processed within 1-3 months after verification.

/ Key fields explained

Field What to enter Common mistake
Tax Regime Selection Choose Old Tax Regime or New Tax Regime. New Regime is default — lower rates (5%, 10%, 15%, 20%, 25%, 30%) with no deductions. Old Regime allows deductions under 80C (₹1.5L), 80D (health insurance), HRA, LTA, standard deduction (₹75,000 from FY25). Accepting the New Regime default without comparing — high earners with significant 80C, HRA, and 80D deductions often pay less tax under the Old Regime. Always compare both before filing.
Income from Salary (Schedule S) Gross salary from all employers during the year, then subtract: standard deduction, professional tax, HRA (if eligible), LTA, and other exemptions. The net figure is your income from salary. Not combining income from both employers if you changed jobs mid-year — both employers should be listed and income from both added.
Income from Other Sources All interest income: savings bank interest (₹10,000 exempted under 80TTA if old regime), FD interest, RD interest, dividend income. Enter total, not just what appears in pre-fill. Forgetting to include interest from Post Office savings or minor savings accounts — all interest income is taxable regardless of whether TDS was deducted.
Tax Paid (TDS + Advance Tax) Total TDS deducted by all employers and banks as shown in Form 26AS. Add any advance tax paid. This is your tax credit against your total liability. Not verifying Form 26AS before filing — if an employer has not deposited TDS with the government, it won't appear in 26AS and you cannot claim credit for it (despite it being deducted from your salary).

/ Common mistakes to avoid

Using ITR-1 when you are not eligible — if you have capital gains (from mutual funds, stocks, property), you must use ITR-2. Incorrect form selection is a defective return.
Not reporting bank interest — all bank interest, even from accounts where the bank did not deduct TDS (savings accounts below ₹10,000 threshold), must be reported.
Missing the verification deadline — returns not verified within 30 days of filing are treated as not filed, meaning the filing deadline is missed and a fresh filing with late fees is required.
Ignoring AIS discrepancies — if AIS shows income that you don't recognize, it must be addressed before filing. Filing without addressing AIS discrepancies often leads to automated demand notices.

/ Frequently asked questions

What is the ITR-1 filing deadline?

July 31 of the assessment year (the year following the financial year). For FY 2024-25, the deadline is July 31, 2025. Filing after this date but before December 31 attracts a late fee of ₹1,000-5,000. After December 31, a belated return can be filed up to March 31 of the assessment year.

Is it mandatory to file ITR-1 if my income is below the taxable limit?

Income below the basic exemption limit (₹2.5 lakh under Old Regime, ₹3 lakh under New Regime, or ₹7 lakh after rebate under New Regime) does not attract tax. However, filing is recommended if you want a refund of TDS, apply for a visa, take a home loan, or carry forward losses.

What is Form 26AS?

Form 26AS is a consolidated tax credit statement showing all TDS deducted from your income by various deductors (employers, banks), advance tax paid, and high-value financial transactions. It is available at traces.gov.in and linked through the income tax portal.

Can NRIs (Non-Resident Indians) file ITR-1?

No. ITR-1 is only for resident individuals. NRIs with Indian income must use ITR-2. Residency is determined by number of days in India during the financial year (182 days = resident for tax purposes).