For the Assessment Year (AY) 2025–26, the Income Tax Return (ITR)-1 form, also known as Sahaj, has undergone several significant changes aimed at simplifying the filing process and aligning with updated tax regulations. Here’s a summary of the key modifications:
✅ Key Changes in ITR-1 for AY 2025–26
- Inclusion of Long-Term Capital Gains (LTCG) up to ₹1.25 Lakh
Taxpayers can now report LTCG up to ₹1.25 lakh under Section 112A directly in ITR-1. Previously, even small capital gains required filing more complex forms like ITR-2. This change benefits salaried individuals and small investors by simplifying the reporting process. - New Tax Regime as Default
The new tax regime under Section 115BAC is now the default. Under this regime, most deductions under Chapter VIA (such as 80C, 80D, HRA, and home loan interest) are not permitted. To claim these deductions, taxpayers must actively opt for the old tax regime within the ITR form. - Removal of Aadhaar Enrolment ID Field
The option to use an Aadhaar enrolment ID in place of an actual Aadhaar number has been removed from the ITR-1 form. This aligns with the government’s move to streamline identity verification processes. - Updated Eligibility Criteria
Individuals with income from sources such as online gaming, cryptocurrency, or those with deferred tax on Employee Stock Ownership Plans (ESOPs) are now ineligible to file ITR-1. Such taxpayers must use more detailed forms like ITR-2 or ITR-3. - Enhanced Pre-Filled Data and AI Assistance
The Income Tax Department has improved the pre-filling of data in ITR forms and introduced AI-based assistance tools. These enhancements aim to reduce errors and make the filing process more user-friendly.
📅 Extended Filing Deadline
To accommodate these changes and ensure taxpayers have adequate time to adapt, the deadline for filing ITR-1 for AY 2025–26 has been extended from July 31 to September 15, 2025.
🛠️ Availability of Excel Utility
The Income Tax Department has released the Excel utility for ITR-1, allowing taxpayers to prepare and file their returns offline. This tool is available for download on the official income tax e-filing portal.
If you need assistance determining whether ITR-1 is suitable for your specific income sources or require guidance on opting for the appropriate tax regime, feel free to ask!
