ITR-1, commonly known as Sahaj, is the simplest Income Tax Return form designed for salaried individuals with basic income sources. It caters to resident taxpayers earning income from salary, one house property, and other sources such as interest or pension. The objective of this form is to make the filing process straightforward for individuals without complex financial transactions. As part of the government's effort to simplify compliance, ITR-1 is pre-filled with essential data like PAN, salary details, and tax deductions—making the return process quicker and more accurate.
ITR-1 Sahaj is an income tax return form applicable to resident individuals (other than HUFs) whose total income does not exceed ₹50 lakhs and comes from:
It is not applicable to individuals having income from business, capital gains, foreign assets, or being a director in a company. This form is ideal for those who want a simple, streamlined method of filing their returns without professional complexity.
The ITR-1 return is suitable for resident individuals who meet all the following conditions:
If you are a salaried employee, pensioner, or an individual with limited secondary income, ITR-1 is the most convenient and relevant form.
You cannot use ITR-1 if any of the following conditions apply:
In such cases, you must choose a more appropriate form such as ITR-2 or ITR-3 based on your income category.
To file ITR-1 (Sahaj), taxpayers must meet specific eligibility norms laid out by the Income Tax Department. These criteria help ensure that only simple-income profiles use this form for streamlined processing. Below are the key conditions that define who is eligible to file ITR-1:
These criteria are designed to ensure that ITR-1 remains exclusive to individuals with straightforward income patterns, making return filing quick, efficient, and hassle-free.
To apply for barcode registration, businesses must meet certain eligibility criteria and fulfill specific requirements:
Individuals classified
as Non-Resident or Resident but Not Ordinarily Resident (RNOR) for the financial year are not allowed to file ITR-1.
If your gross total income during the financial year exceeds ₹50,00,000, you are required to file a more detailed return like ITR-2 or ITR-3.
If you own more than one house property or have incurred a loss under the head "Income from House Property," you cannot use ITR-1.
Anyone earning from business, freelancing, consultancy, or professional services must file ITR-3 or ITR-4 depending on their situation—not ITR-1.
If you hold foreign bank accounts, foreign securities, or have income sourced outside India, you must file ITR-2 or ITR-3 instead.
Taxpayers having short-term or long-term capital gains, even if exempt, are not eligible to file ITR-1.
Being a director in any company or holding shares in an unlisted company automatically makes you ineligible for ITR-1.
If your agricultural income exceeds ₹5,000, even if your other income qualifies, ITR-1 cannot be used.
Individuals who have deferred tax liability on ESOPs from eligible startups must use ITR-2 or other relevant forms.
For a smooth and accurate ITR-1 filing experience, it is essential to gather and verify all required documents in advance. These records help ensure correct income reporting, deduction claims, and alignment with government data.
Required for identity verification and mandatory e-verification.
Provides details of salary income and TDS deductions for salaried taxpayers.
Summarized statement of all TDS, TCS, and advance tax payments.
Covers details of income sources like interest, dividends, and high-value transactions.
Used to report interest earned on savings or fixed deposits.
Needed if you are claiming HRA exemptions.
Evidence of eligible investments under Sections like 80C, 80D, and 80G.
Used to claim interest deductions under Section 24(b).
Must include account number and IFSC code for refund processing.
Includes savings interest, pension, and any miscellaneous income.
For those who paid self-assessment or advance tax manually.
Filing ITR-1 (Sahaj) is essential for salaried individuals to stay compliant with income tax laws and avoid penalties. Here's a complete breakdown of the process to help you file your return smoothly and correctly:
Start by collecting all required documents related to your income and deductions. This typically includes Form 16 issued by your employer, salary slips, interest certificates from banks, Form 26AS, and proof of tax-saving investments. Verifying the figures mentioned in Form 16 with your salary slips and bank statements is crucial to ensure there are no mismatches when filing your return.
Visit the official income tax e-filing portal at www.incometax.gov.in and log in using your PAN as the user ID along with your password. If you're a first-time user, you'll need to register before proceeding. Once logged in, navigate to the e-File section to begin the return filing process.
After logging in, go to the ‘File Income Tax Return’ option and select the assessment year and mode of filing (online or offline). Then choose the correct form—ITR-1 (Sahaj)—which is specifically meant for resident individuals earning income from salary, pension, one house property, or other sources (excluding lottery winnings or income from racehorses), with total income up to ₹50 lakh.
Proceed to fill in your personal details such as name, address, Aadhaar number, and bank account details. Then, move on to the income section. Enter salary income as per Form 16, house property income (if any), and income from other sources like interest earned from savings accounts or fixed deposits. Cross-check all entries with Form 26AS and AIS (Annual Information Statement) to avoid discrepancies.
Next, declare your deductions under applicable sections such as 80C for LIC, PPF, ELSS, 80D for health insurance, and 80G for donations. The portal will automatically compute your total taxable income after applying the deductions. Make sure to review all the figures carefully and ensure no deductions are missed.
Once the system calculates your tax liability, check if there is any additional tax payable. If taxes are due, make the payment through the ‘e-Pay Tax’ option on the portal before proceeding. If a refund is expected, confirm your bank account details for faster credit. Always ensure the final calculation matches your expectations based on your documents.
After reviewing all details thoroughly, click on the “Preview and Submit” option. Once submitted, the final step is to verify your return electronically. You can e-verify using Aadhaar OTP, net banking, EVC through a pre-validated bank account, or Demat account. This step is mandatory for the Income Tax Department to process your return. Without e-verification, your filing will remain incomplete.
Meeting the due date for ITR-1 filing is crucial to avoid penalties and maintain seamless tax compliance. Here’s a detailed explanation of important timelines and consequences related to the ITR-1 return:
For individuals not subject to audit, the due date to file ITR-1 is July 31st of the assessment year (e.g., for FY 2023–24, the due date is July 31, 2024). Filing before this deadline ensures timely processing of refunds, claim of deductions, and avoidance of legal complications.
If you miss the July 31st deadline, you can still file a belated return under Section 139(4) until December 31st of the assessment year. However, late filing attracts a penalty of up to ₹5,000 under Section 234F. If your income is below ₹5 lakh, the penalty is restricted to ₹1,000.
If you failed to file your ITR-1 for an earlier year, you may still do so under the Income Tax portal's condonation request, subject to approval by the assessing officer. However, interest, penalties, and legal scrutiny may apply depending on the case.
Taxpayers filing ITR-1 can claim multiple deductions under various sections of the Income Tax Act, 1961. These deductions help reduce total taxable income, resulting in lower tax liability. It's important to identify and claim only the eligible deductions based on income type, investments, and expenditures incurred during the financial year.
Under Section 80C, individuals can claim deductions up to ₹1.5 lakh for investments made in instruments like Life Insurance Premiums, Public Provident Fund (PPF), Employee Provident Fund (EPF), Equity Linked Savings Schemes (ELSS), tax-saving Fixed Deposits (FDs), National Savings Certificate (NSC), Sukanya Samriddhi Account, and repayment of principal on home loans.
This section allows deductions for premiums paid toward health insurance for self, spouse, children, and parents. The maximum deduction is ₹25,000 for individuals below 60 years and ₹50,000 for senior citizens. Additional preventive health checkup expenses (up to ₹5,000) can also be included within the limit.
Taxpayers can claim a deduction of up to ₹2 lakh on interest paid on home loans under Section 24(b), provided the house is self-occupied and the loan is taken for purchase or construction. This deduction is separate from Section 80C.
Section 80TTA: Deduction up to ₹10,000 on interest earned from savings bank accounts.
Section 80G: Deductions for donations made to eligible charitable institutions and relief funds,
based on prescribed limits and conditions.
Section 80E: (for education loan interest) and 80U (for disability) may apply if the taxpayer meets eligibility, although rare under ITR-1.
While filing ITR-1, even minor errors can lead to notices from the Income Tax Department or loss of tax benefits. To ensure a smooth and compliant filing experience, it's important to avoid the following common mistakes:
Choosing the Wrong ITR Form
Taxpayers often file ITR-1 without checking eligibility. If you have income from more than one house property, capital gains, or business/professional income, ITR-1 is not applicable and choosing it may lead to rejection or legal issues.
Not Matching Income with Form 26AS
Failing to reconcile income details with Form 26AS can result in discrepancies. The form reflects TDS deducted, salary paid, and high-value transactions. Any mismatch between your filed return and Form 26AS may trigger a scrutiny or demand notice.
Forgetting to e-Verify Return
Many users submit the ITR but forget to e-verify it. An unverified return is treated as “not filed,” leading to penalties or loss of carry-forward benefits. Always e-verify using Aadhaar OTP, net banking, or other valid methods within 30 days.
Skipping Interest Income Declaration
Savings account interest, FD interest, or interest from bonds must be declared under ‘Income from Other Sources.’ Even if it seems minor, non-disclosure may be considered as tax evasion and result in notices and penalty.
Incorrect Deduction Claims
Claiming deductions without actual investment or incorrect documentation may lead to disallowance. Ensure that deductions under Sections 80C, 80D, 80TTA, etc., are backed by valid proof and match the amounts shown in Form 16 or related certificates.
Filing ITR-1 within the due date is not only a legal requirement but also crucial to avoid financial and compliance-related consequences. Delay or failure to file the return can lead to multiple penalties and restrictions that affect your financial credibility and future plans.
As per Section 234F of the Income Tax Act, a late filing penalty of ₹5,000 is levied if the return is filed after the due date (usually 31st July). For small taxpayers with income below ₹5 lakh, the penalty may be restricted to ₹1,000.
If any self-assessment tax remains unpaid on the due date, interest under Section 234A is applicable. The rate is 1% per month (or part of a month) on the outstanding amount, calculated from the due date till the actual date of filing.
If you miss filing your return within the due date, you lose the right to carry forward certain losses like house property loss or business loss to future years. These losses can help reduce tax liability in upcoming years, making timely filing essential.
Income Tax Return serves as a crucial financial document while applying for home loans, business loans, or even during visa applications. Failure to file returns may lead to rejection of loan applications or create hurdles in travel documentation for some countries.
Filing your ITR-1 can be easy and stress-free when guided by experienced professionals. Udyog Suvidha Kendra simplifies the entire process by offering personalized and reliable support for every step of your income tax return filing.
Our experts carefully analyze your Form 16, bank statements, and other relevant documents to ensure complete and accurate income disclosure. This minimizes the risk of mismatches with Form 26AS or AIS and reduces the chances of tax notices.
We use advanced checks and validations to prevent common errors such as incorrect deductions, mismatched figures, or selecting the wrong ITR form. This ensures your return is filed correctly the first time, avoiding penalties or rejections.
From collecting documents and selecting the correct ITR form to submission and e-verification, we provide full support throughout the return filing process. We also help you generate and store the acknowledgment for your financial and legal records.
