Introduction
Assessment Year 2025–26 introduces transformative updates to the ITR‑1 (Sahaj) form, spurred by the Finance Act 2023, latest CBDT notifications, and expanded AIS/TIS validation. High-salaried resident individuals—particularly those claiming HRA, managing home loans, or paying rent exceeding ₹50,000/month—must navigate:
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Mandatory disclosures across HRA, health insurance, home loans, and LTCG u/s 112A
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A revised ITR‑1 filing deadline of 15 September 2025
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Hard deadline for Form 26QC (TDS on rent) by 30 April 2025
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Real-time AIS/TIS-based mismatch alerts
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Penalty provisions under Sections 234F, 234E, and 271H
Executive Snapshot – At a Glance
| Particulars | ITR‑1 (Sahaj) | Form 26QC (Rent > ₹50K/month) |
|---|---|---|
| Applicable To | Resident Individuals (Income ≤ ₹50 lakh) | Tenants (Individual/HUF) paying rent > ₹50,000/month |
| Due Date | 15 Sept 2025 (extended via CBDT Order 10.06.2025) | 30 Apr 2025 (strict statutory deadline) |
| Penalty for Delay | ₹5,000 (Sec 234F) | ₹200/day (Sec 234E) + ₹10K–₹1L (Sec 271H) |
| Key Compliance Risk | Return invalid; deductions disallowed | TDS interest @1%/1.5%, AIS mismatch, landlord credit loss |
1. ITR‑1 Eligibility – Who Can File Sahaj?
ITR-1 can be filed only by individuals who satisfy all of the following:
| Criteria | Condition |
|---|---|
| Residency | Must be a Resident Individual (Not RNOR/NRI) |
| Income Ceiling | Total Income ≤ ₹50 lakh |
| Sources of Income | Salary/Pension, One House Property, Other Sources (FD/Interest), and LTCG u/s 112A up to ₹1.25 lakh |
| Agricultural Income | ≤ ₹5,000 |
Ineligible then Switch to ITR-2 if:
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You have business/professional income
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You own more than one house property
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Your capital gains exceed ₹1.25 lakh or include STCG
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You hold unlisted shares, crypto assets, ESOP deferrals, or are a director in a company
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You have Section 194N cash withdrawals
2. Key Amendments in ITR‑1 (AY 2025–26)
| Update | Description |
|---|---|
| Default Tax Regime (Sec 115BAC(1A)) | New Regime auto-selected. To claim deductions (80C–80U), opt for Old Regime in Part A |
| HRA & Rent Reporting | Furnish: rent paid, HRA received, landlord's name/PAN/address, and Form 26QC Ack. No. |
| Health Insurance (Sec 80D) | Report insurer, policy number, premium split, and mode of payment (only non-cash) |
| Housing Loan Details | Provide lender name, account number, interest under 24b, and principal under 80C |
| LTCG Reporting (u/s 112A) | Allowed up to ₹1.25 lakh without carry-forward; auto-populated in some cases |
| Salary Income | Components (Basic, HRA, LTA, perquisites) auto-filled from Form 16 |
| AIS/TIS Matching | Real-time mismatch alerts; ensure income/tax reported in Form 26AS, AIS, and ITR match |
3. Real Case Study: High-Rent Tenant Ignoring Form 26QC
Scenario:
Mr. Sharma pays rent of ₹60,000/month for FY 2024–25 (total ₹7.2 lakh).
He fails to file Form 26QC by 30 April 2025, triggering multiple issues.
| Issue | Impact |
|---|---|
| No TDS under Sec 194‑IB | Interest @ 1% p.m. on ₹36,000 (5% of ₹7.2 lakh) |
| Late Form 26QC filing | ₹200/day penalty → ~₹31,000 till actual filing |
| HRA mismatch in AIS | CPC notice under Section 143(1); refund blocked |
Remedial Action:
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Deduct and deposit TDS immediately
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File Form 26QC with penalty and interest via TIN-NSDL
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Issue Form 16C to landlord
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Update TDS schedule and 26QC Acknowledgement in ITR-1
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Avoid future defaults with advance tax tracking
4. Document Checklist for ITR-1 Filing
| Category | Documents Required |
|---|---|
| Identity | PAN, Aadhaar, Updated Address, Bank Details (pre-validated) |
| Salary Income | Form 16 (Parts A & B), Salary Slips, Form 12BA |
| House Property | Ownership Proof, Possession Letter, Property Tax Receipt |
| HRA Compliance | Rent Agreement, Monthly Rent Receipts, Landlord PAN & Address |
| Home Loan | Loan Sanction Letter, Interest Certificate, Principal Statement |
| Health Insurance | Premium Receipts, Policy Documents, Insured Member Details |
| Capital Gains | Demat Statements, Contract Notes, ISIN, Mutual Fund Statements |
| Other Income | FD/Bank Interest Certificates, Form 26AS, AIS/TIS |
| Deductions | 80C/80D/80E/80G Receipts, NPS Contributions |
| Tax Paid | Advance Tax/Self-Assessment Tax Challans, TDS Reconciliation via 26AS |
5. Step-by-Step: How to File ITR‑1 Online
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Login to https://www.incometax.gov.in
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Navigate: e-File → Income Tax Return → File ITR
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Select AY 2025–26, choose ITR-1
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Choose tax regime: Old (to claim deductions) or New
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Verify pre-filled AIS/TIS/Form 26AS
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Enter salary, HRA/rent details, TDS (26QC Ack. No.), deductions
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Pay any tax dues via netbanking, UPI, card, or e-Pay Tax portal
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Review return summary → Submit
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Complete e-Verification within 30 days
6. Expert Compliance Tips
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📌 AIS-TIS Reconciliation: Match income with Form 16, bank/FI statements
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📌 Tax Regime Simulation: Use income-tax calculator for Old vs New regime decision
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📌 Close to ₹50 lakh? Switch to ITR-2 to avoid audit trigger due to second property, capital gains
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📌 Backdated Rent TDS? File Form 26QC retroactively and report in ITR-1
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📌 Keep Digital Proofs: Rent receipts, 80C/80D/NPS payments, home loan interest
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📌 Use Offline Utility: For smoother experience, especially in case of large data or multiple entries
Conclusion: File Smart, File Safe
The new ITR-1 framework demands accurate disclosures, timely actions, and proactive compliance. For salaried professionals:
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⏳ Respect the dual deadlines: 15 Sept 2025 (ITR) & 30 Apr 2025 (26QC)
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🧾 Maintain document integrity and regime evidence
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🔄 Reconcile with AIS/TIS/26AS to avoid CPC mismatch or scrutiny
