Income tax e-filing AY 2025-26: The Income Tax Return (ITR) filing season is going on in full swing, and crores of taxpayers must have plans to file their returns over the next six days before the deadline ends on September 15. Based on the trends and past data, most of these filers would use ITR 1 to file their return for AY 2025-26.
How many tax return filers used ITR 1 for filing last year?
If we analyse the last year’s figures, out of the 7.28 crore ITRs filed for AY 2024-25, 45.77% of ITRs were ITR-1 (3.34 crore). It must be noted here that the ITR filing figures of 7.28 crore were till July 31, and for the entire assessment year, the overall tally stood at over 9 crore.
As regards other ITR forms, 14.93% or 1.09 crore of 7.28 crore ITR filers used ITR-2, 12.50% or 91.1 lakh filed ITR-3, 25.77% or 1.88 crore filed ITR-4 and 1.03% or 7.48 lakh used ITR-5. Around 7.48 lakh people filed ITR-7.
How many taxpayers filed ITR using online utilities?
Over 43.82% of these ITRs were filed using the online ITR utility available on the e-filing portal and the balance were filed using offline ITR utilities.
Who should file ITR 1 (Sahaj)?
One of the most used forms is ITR-1 (Sahaj). This form is mainly for those individual taxpayers whose income comes from simple sources, such as salary, pension or interest from savings account. But many people do not know that not all types of income can be included in ITR-1. Some incomes are clearly excluded from this form and a separate form has to be filled for them.
Scope of ITR-1
ITR-1 form can be filled only by those individuals –
whose total income is up to Rs 50 lakh.
Income is only from salary or pension, one house property and other sources (such as interest income).
If your income is more than this or complex, then you will have to use other ITR forms (ITR-2, ITR-3, ITR-4 etc.)
Which income is not included in ITR-1?
- Income from business or profession
If your income is from a business or profession, then you cannot use ITR-1. For this, you will have to opt for ITR-3 or ITR-4.
- Capital gains (from sale of shares, mutual funds, property)
Short-term or long-term capital gains from the sale of shares, mutual fund units or real estate cannot be filed in ITR-1. In such cases, ITR-2 or ITR-3 will have to be filled.
- Income from more than one house property
ITR-1 is valid only for reporting income (or loss) from one house property. If you have income from two or more properties, then you will have to fill ITR-2 or ITR-3.
- Income from lottery, horse racing or gaming
Lottery, horse racing, game show or other speculative income cannot be shown in ITR-1. Different tax rules apply to these incomes and require ITR-2.
- Foreign income or property
If you have any foreign income or you have property located abroad, then ITR-1 is not valid for you. In such cases, ITR-2 or ITR-3 has to be filed.
- Agricultural income more than Rs 5,000
Agricultural income up to Rs 5,000 can be shown in ITR-1. But if your agricultural income is more than this, then ITR-1 cannot be used.
- Resident but not ordinarily resident (RNOR) or non-resident
ITR-1 is only for Resident Individual. Non-Resident Indian (NRI) or Resident but Not Ordinarily Resident (RNOR) cannot use this form.
- Total income more than Rs 50 lakh
If your total income is more than Rs 50 lakh, you will not be able to use ITR-1. Such taxpayers will have to fill ITR-2 or other appropriate form.
Why is it important to choose the right ITR form?
Choosing the wrong ITR form can make your return invalid (defective return). This will delay processing and refund may get stuck. Therefore, it is very important to understand which category your income falls under before filing.
Summing up…
The ITR-1 is the easiest and most convenient form for ordinary taxpayers, but it has its own limitations. If your income has complexities like capital gains, business income, large agricultural income or foreign assets, it would be better to use other forms instead of ITR-1.
Filing your tax return this year? Head to our detailed ITR Guide for everything you need to know.