What is ITR?

Taxpayers submit information about their income generated and associated tax liability to the income tax department by filing an Income Tax Return (ITR). It acts as a formal disclosure of a person's or organization's financial data, guaranteeing openness and adherence to tax laws.

The seven shapes that make up the ITR landscape are ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. On or before the designated due date, each taxpayer must file their ITR. The taxpayer's category, which can include individuals, Hindu Undivided Families (HUFs), businesses, and more, as well as the sources of income and income earned, all influence the choice of ITR form.

Meet requirements (Who can file ITR-1)

How is eligible to file ITR 1 Form For AY 2026-27

1. If income comes from a salary or pension (up to Rs. 500,000),
2.  If there are other sources of income
3. Income Threshold: The total income of the individual for the fiscal year cannot be more than Rs. 50 lakh.
4. Permissible Income Sources: ITR-1 is appropriate for people whose income originates from the following sources:
5.  Revenue from a single-family home
6.  Pension income for the family
7.  Income from agriculture (up to Rs. 5,000)
8.  Additional sources consist of:
9.  Bank, Post Office, and Cooperative Society Deposit Interest
10.  Interest on Refunds of Income Tax
11.  Interest on Enhanced Compensation received
12.  Any additional interest income

Who Cannot File ITR1

1. Non-resident Indian (NRI) and resident not ordinarily resident (RNOR) people
2. Individuals whose total income surpasses? 50 lakh
3. People whose income from agriculture exceeds? Five Thousand
4. People whose income comes from legal gambling, racehorses, lotteries, etc.
5. Individuals who have both short-term and long-term taxable capital gains
6. People who have purchased equity shares that are not listed
7.  People whose income comes from their job or business
8.  People who work for a corporation as directors
9.  People taking advantage of tax deductions under the Income Tax Act's section 194N
10.  People who obtained an Employee Stock Ownership Plan (ESOP) from an eligible start-up employer with deferred income tax
11. People who own and make money from multiple residential properties

Due Date for ITR-1

Usually, the deadline for filing an ITR 1 is July 31st of the assessment year. To guarantee that your income tax return is filed on time and in accordance with tax laws, it is imperative that you fulfil this deadline.

1. Make a tax refund claim

If your bank or employer withheld excess TDS (Tax Deducted at Source), submitting an ITR-1 enables you to:

Get your money back straight into your bank account.

Check the status of your refund online.

2. Household property losses that are carried forward

To lower your tax obligation, you can carry over losses (such as home loan interest loss under one dwelling property) to subsequent years.

3. Steer clear of legal and penalty notices

Timely filing benefits you:

Prevent penalty for late submission (up to ₹5,000 under Section 234F).

Stay out of trouble with Sections 234A, B, and C.

Remain calm and in compliance.

4. Quicker Financial & Loan Approvals

ITR records from the previous two to three years are preferred by banks and NBFCs for:

Greater loan eligibility

Quicker processing

5. Assists with Budgeting

Frequent filing: Monitors earnings and assets

fosters financial self-control

keeps a spotless tax record

We will talk you through the process of completing your income tax online through the Income Tax e-filing system. 

Step 1: Access the Income Tax e-Filing Portal by logging in.

Go to the income tax e-filing page and enter your password and User ID (PAN). If you are filing for the first time, you must first select "Register" and create an account with your PAN. If multi-factor authentication is set, make sure you have access to the registered email address or mobile number for OTPs while logging in.

Step 2: Select "File Income Tax Return" .

You will see your dashboard after logging in. Select e-File > Income Tax Returns > File Income Tax Return from the menu. The ITR filing process will begin as a result.

Step 3: Select the Year of Assessment and Method of Filing

You will be prompted to select the assessment year. Since we are submitting for FY 2024–2025, choose the assessment year "2025-26". Additionally, select "Online" as the form of filing (online is recommended for most individual taxpayers). To proceed, click Continue.

Step 4: Produce a New File

If you have a saved draft of a return, the website can offer you the option to "Resume Filing" for that AY. To begin a new ITR, click "Start New Filing."

Step 5: Select Your Status

When the next step asks for your filing status, choose "Individual" since ITR-1 is intended for individual taxpayers. Furthermore, you may need to specify whether you are submitting as yourself or as a representative because the majority of people file as themselves. Click Continue after selecting the appropriate status.

Step 6: Choose the ITR-1 Form

The portal will show you the available ITR forms based on your status. After selecting ITR-1 (Sahaj) from the list, click Proceed.

Step 7: If applicable, choose the reason for filing.

Step 8: Select the Old or New Tax Regime

Step 9: Fill in General and Personal Information

Step 10: Provide Information

Usually, your income information is automatically or pre-filled. Check the information before moving further. If not, follow the directions to manually add or change details.

Step 11: Enter Deductions (Part C: Taxable Income and Deductions).

You will declare your deductions under Chapter VI-A after declaring all of your income. You can claim eligible expenses or investments that save taxes in this area.

Step 12: Tax Calculation (Part D: Tax Computation)

Following the completion of income and deduction forms, the site will automatically determine your tax obligation depending on your selected tax regime and taxable income. It will calculate the entire amount of tax due by applying the applicable tax slab rates and adding any cess.

Step 13: If necessary, pay taxes

Step 14: Examine Your Refund

You're about finished now. You can view a read-only preview of your completed ITR form on the site.You can go back to the relevant section and fix any errors you see there.

Step 15: Verify and Send the ITR in

Your completed return will now undergo a validation check by the system. It will display a list of problems for you to resolve if there are any. You can then submit your ITR if there are no errors discovered. Select "Proceed to verification" to complete the filing process.

Step 16: Verify your ITR (e-Verification)

You will be directed to the Verification stage after submitting. Verifying your income tax return is required; if you don't, it will be deemed not filed. Select your preferred method of verification on the "Complete your Verification" page. E-verification, which may be completed by Aadhaar OTP, net banking, bank ATM/DEMAT OTP, etc., is the quickest and most straightforward method.

Tax slab for ITR Filing (Individuals)

New Regime Slabs: Old Regime Slabs (<60 years): Old Regime Slabs (>60 years)

₹0–4L: 0%                    :0-2.5L : 0%                               :0-3L :0%

₹4–8L: 5%                    :2.5-5L : 5%                               :3-5L :5%

₹8–12L: 10%                :5-10L : 20%                             :5-10L:20%

₹12–16L: 15%              : Above 10L: 30%                       : Above 10L: 30%

₹16–20L: 20%                        

₹20–24L: 25%          

Above ₹24L: 30%     

Situation 1: ₹12,00,000 Salary                                  

Regime           Taxable Income         Tax Before Rebate/Cess       Final Tax (incl. 4% Cess)

Old               ₹11,50,000                 ₹1,57,500 ​                           ₹1,63,800

New              ₹11,25,000                  ₹52,500                                ₹54,600

Situation 2: ₹1,300,000 Salary

Regime           Taxable Income         Tax Before Rebate/Cess       Final Tax (incl. 4% Cess)

Old               ₹12,50,000                 ₹2,02,500                               ₹2,10,600

New                ₹12,25,000                 ₹63,750                                  ₹66,300                               

Situation 3: ₹1,500,000 Salary

Regime           Taxable Income         Tax Before Rebate/Cess       Final Tax (incl. 4% Cess)

Old                 ₹14,50,000                 ₹2,62,500                               ₹2,73,000

New                ₹14,25,000                 ₹1,05,000                               ₹1,09,200

Situation 4: ₹25,00,000 Salary

Regime           Taxable Income         Tax Before Rebate/Cess       Final Tax (incl. 4% Cess)

Old                ₹24,50,000                 ₹5,62,500                               ₹5,85,000

New                ₹24,25,000                 ₹3,30,000                               ₹3,43,200

Required Documents for ITR 1 Filing

ITR Sahaj forms don't require any attachments. This implies that taxpayers are exempt from attaching any paperwork.

The following papers, however, should be kept on file by taxpayers, and they should be ready to provide them to tax authorities upon request, especially in cases such as assessments or enquiries.

1. All of your employers must provide Form 16 for the applicable fiscal year.
2. Form 26AS: Verify that the TDS information in Part A of Form 26AS corresponds to that in Form 16.
3. Keep your receipts for any exemptions or deductions (such as Section 80C/80D deductions or HRA allowances) that you did not timely submit to your employer so you can claim them directly on your income tax return.
4. PAN Card: For identification purposes, your Permanent Account Number (PAN) card is necessary.
5. Bank Investment Certificates: Passbooks or certificates for fixed deposits that provide information on interest received from bank accounts.

For every earner, filing their income tax return is a crucial yearly obligation. For taxpayers with modest earnings, the ITR-1 (Sahaj) form makes this process easier, and the internet e-filing platform has made it quite convenient. You can confidently file your ITR-1 on your own if you comprehend the eligibility, collect your documentation, and adhere to the detailed procedure.