Comprehensive Guide to Filing ITR-1 for FY 2024-25 (Assessment Year 2025-26)

Filing your Income Tax Return (ITR) is a crucial responsibility for every taxpayer in India. For the Financial Year 2024-25 (Assessment Year 2025-26), the Income Tax Department has introduced several updates to the ITR-1 form, aiming to simplify the filing process and enhance compliance. This guide provides an in-depth look at the ITR-1 form, the changes introduced, and how TaxCellent can assist you in navigating the complexities of tax filing and ensuring compliance with both Income Tax and Goods and Services Tax (GST) regulations.

What is ITR-1?

ITR-1, also known as ‘Sahaj’, is a simplified income tax return filing form designed for resident individuals with income up to ₹50 lakh. It is applicable for individuals’ earning income from:

This form is not applicable for individuals’ earning income from:

Key Changes in ITR-1 for AY 2025-26

1. Default Tax Regime

As per the Finance Act 2023, the new tax regime has become the default tax regime under Section 115BAC. Taxpayers must explicitly opt out of this regime if they wish to continue with the old tax regime. This change aims to simplify tax calculations and reduce the need for taxpayers to maintain records for exemptions and deductions.

2. Enhanced Rebate under Section 87A

The rebate under Section 87A has been increased to ₹25,000 for individuals with a taxable income of up to ₹7 lakh under the new tax regime. This means that individuals falling within this income bracket will not have to pay any income tax.

3. Standard Deduction

The standard deduction of ₹50,000 under Section 16(IA) is now available in the new tax regime as well, for salaried individuals. This provides a uniform benefit across both tax regimes.

4. Introduction of Section 80CCH

A new section, 80CCH, has been introduced, allowing a tax deduction for individuals enrolled in the Agnipath Scheme who subscribe to the Agniveer Corpus Fund on or after November 1, 2022. The ITR-1 form has been updated to include a new column to provide details for deductions under Section 80CCH.

5. Pre-validated Bank Account for Refunds

From AY 2024-25 onwards, taxpayers no longer need to specify an account for receiving tax refunds in their ITR. The refund will be credited to one of the pre-validated bank accounts linked with the taxpayer’s PAN. Ensure your PAN is linked to the bank account you want to receive the refund in.

6. Changes in Capital Gains Taxation

The government has revised the capital gains taxation rules from FY 2024-25. The changes are as follows:

Short-Term Capital Gains (STCG)

Sale of House Property

These changes aim to simplify the capital gains taxation regime and make it more uniform across different asset classes. 

Step-by-Step Guide to Filing ITR-1

Step 1: Gather Required Documents

Before you begin the filing process, ensure you have the following documents:

Step 2: Log in to the Income Tax E-Filing Portal

Visit the official Income Tax e-Filing Portal and log in using your credentials. If you don’t have an account, you can register by providing your PAN and other details.

Step 3: Select the Appropriate ITR Form

Navigate to the ‘e-File’ section and select ‘Income Tax Return’. Choose the following options:

Step 4: Fill in Personal Information

Enter your personal details, including:

Ensure all information is accurate to avoid discrepancies.

Step 5: Income Details

Provide details of your income under various heads:

Step 6: Claim Deductions

Under the old tax regime, you can claim deductions under various sections such as 80C, 80D, 80G, etc. Under the new tax regime, most deductions are not available, except for the standard deduction and deductions under sections like 80CCD (2) and 80CCH.

Step 7: Tax Calculation

The portal will automatically calculate your tax liability based on the income and deductions provided. Review the calculation to ensure accuracy.

Step 8: Verify and Submit

After reviewing all details, submit the return. You can E-Verify your return using Aadhaar OTP, net banking,

Important Deadlines

The deadline for Online ITR 1 Form Filing for AY 2024-25 has been extended to September 15, 2025.

Taxcellent assist you in filing ITR within statutory timeline at reasonable prices.

Taxcellent - For All Chartered Accountants Services

We have launched a range of Chartered Accountants Services for families along with a complete income tax filing product suite covering ITR-1 to ITR-7. With the launch of our families division, we aim to help millions of Indians with financial literacy, compliance and investment.

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