ITR-1 (Sahaj): Who Can File and Who Can’t? Here is what you need to know

ITR-1 (Sahaj): As the 2025 income tax season comes, the Income Tax Department of India has come out with a new set of guide to help people file ITR-1, also called Sahaj. On June 11, 2025, the department posted this update on X to help people understand who can use this simple form and who cannot. ITR-1 is one of the easiest forms, and many people in India use it every year.

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Who can use ITR-1?

ITR-1, also known as Sahaj, is made for people who live in India and have a simple income.

• This form is for those who earn up to ₹50 lakh in a year. It includes income that comes from salary, from just one house property, or from other small sources like interest from the bank.
• If someone has a small amount of agricultural income, up to ₹5,000, they can still use this form. It’s very simple and works well for those who do not have a complicated financial situation.

The form also fits with the Digital India program, so people can file it online using the Income Tax e-filing website. Since 2020, e-filing has been the main way to send tax forms, and many people now prefer it.

Who can NOT use ITR-1?

The guide also talks about who should not use this form.

• If someone owns anything outside India, or if they have the power to manage money in a foreign bank, then they cannot use ITR-1.
• People who claim tax credits for money paid in other countries also can’t use it.
• If a person has large losses, more than ₹2 lakh, like capital losses, they also need to use a different form.
• If someone has deferred ESOP income from a startup, this form is not for them.

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Importance of this Form

The ITR-1 form plays a big role in India’s tax system. In the year 2024–25, more than 7 crore people filed this form, according to the Income Tax e-filing website. The form is popular because it is easy and works for many people with simple income. By keeping out the complicated income types, the form stays easy to use.

This helps more people file their taxes with ease. After the rule in 2020 that made e-filing a must, the number of people using the e-filing portal has gone up every year. There has been a 25% rise in filings each year since then, showing that people are now more comfortable with the online process.