📘 Introduction
The Income Tax Department has rolled out the revised ITR-1 form (SAHAJ) for Assessment Year 2025–26, and it comes with critical changes you must know before filing your returns. Whether you’re a salaried employee, pensioner, or someone earning interest income, these updates affect how your income is reported and how much tax you pay. Let’s dive into the ITR-1 AY 2025–26 changes and understand what’s new.
🔍 What is ITR-1 SAHAJ?
ITR-1 is a simplified return form meant for:
- Resident individuals (other than not ordinarily resident)
- Total income up to ₹50 lakh
- Income from: salary/pension, one house property, and other sources (interest, etc.)
- Long-term capital gains under section 112A (within specified limits)
🔄 Major Changes in ITR-1 Form for AY 2025–26
Here’s a breakdown of the significant updates compared to last year’s form (AY 2024–25):
| Feature | AY 2024–25 | AY 2025–26 | What’s New |
|---|---|---|---|
| LTCG Exemption u/s 112A | ₹1 lakh | ₹1.25 lakh | Increased limit allows more tax-free capital gains. |
| Opt-Out of New Regime (115BAC) | Limited clarity | Clear Yes/No checkbox | Users can now clearly state whether they wish to opt-out of the new regime. |
| 7th Proviso to Section 139(1) | Minimal prompts | Detailed disclosures on: – Foreign travel > ₹2L – Electricity bill > ₹1L – Other triggers | Expanded reporting requirements for high spenders not otherwise required to file. |
| Section 89A Reporting | Not clearly separated | Separate rows for: – Notified countries – Non-notified countries | Improved compliance for NRIs with foreign retirement income. |
| Bank Account Details | Basic info | Mandatory to select refund account and exclude dormant accounts | Streamlined refund process. |
| E-filing Utility Enhancements | Manual entry | Dropdowns for: – Salary – Deductions – House property – Other sources | Better usability and error reduction. |
| Section 234C Relief | Basic input | Quarterly breakup needed for dividend/foreign income | Helps calculate accurate interest relief. |
✅ Why These Changes Are Important
These modifications are part of a larger effort to:
- Improve transparency and reduce tax evasion
- Help non-residents and salaried professionals file accurate returns
- Increase flexibility in regime selection under Section 115BAC
- Align reporting with international retirement taxation rules (section 89A)
📂 Filing Checklist for AY 2025–26 (ITR-1)
Make sure you have:
- PAN and Aadhaar linked
- Bank details (excluding dormant accounts)
- Form 16 and interest certificates
- Details of capital gains u/s 112A
- Quarterly breakdown of foreign/dividend income (if applicable)
- Option declaration for 115BAC (if opting out)
📊 Quick Snapshot of New Reporting Requirements
| Field | Details to Provide |
|---|---|
| Foreign Travel Expense > ₹2L? | Yes/No + Amount |
| Electricity Bill > ₹1L? | Yes/No + Amount |
| Foreign Retirement Income | Country type + amount under section 89A |
| Capital Gains u/s 112A | Sale value, cost of acquisition, LTCG |
| 115BAC Regime | Choose “Yes” if opting out |
🧾 Final Thoughts
The updated ITR-1 AY 2025–26 form simplifies tax filing while also ensuring deeper compliance, especially for taxpayers with capital gains and foreign retirement income. If you’re eligible to use ITR-1, be sure to review all the changes before filing to avoid errors and maximize your deductions.
Stay informed and file smart!
