• The total income must not exceed ₹50,00,000 during the financial year.

• Income of a spouse (not having independent taxable income) or a minor child can be included (clubbed), provided that the clubbed income also falls under the permitted heads—salary/pension, one house property, or other sources—and the total income, including the clubbed portion, does not exceed ₹50 lakh.

• • Exemption is provided if the only capital gains are LTCG up to ₹1,25,000 under Section 112A (i.e., from sale of equity shares or mutual funds on which STT is paid).
  • No carry forward or set-off of capital losses is allowed under ITR-1.

• The taxpayer’s income should originate exclusively from the following heads:

  
  

  a. Salary/Pension:

  
  

  • Includes all forms of salary income such as basic pay, allowances, perquisites (non-exempt), and pension income from one or more employers.

  
  

  b. Income from One House Property:

  
  

  • Only one self-occupied or let-out property is allowed.
  • Cases involving carry-forward of losses from previous years are excluded.

  
  

  c. Income from Other Sources (as per Section 56):

  
  

  • Includes interest income from savings bank accounts, fixed deposits, recurring deposits, post office schemes, etc.
  • Excludes winnings from lottery, racehorses, card games, gambling, or any casual income.

• • The assessee must have a valid Aadhaar number and ensure that Aadhaar is linked with PAN before filing returns, in compliance with Section 139AA.
  • Returns will not be processed unless this linkage is completed.

• An individual shall not be eligible to use ITR-1 if they fall under any of the following categories:

  
  

  1. Income exceeds ₹50,00,000:

  2. Director in a Company:

  3. Holding Unlisted Equity Shares:

  4. RNORs and Non-Resident Individuals:

  5. Multiple House Properties:

  6. Income from Specified Other Sources:

  7. Business or Professional Income:

  8. Agricultural Income:

  9. Foreign Assets or Foreign Income:

  10. Tax Relief under Sections 90, 90A or 91:

  11. Deferred ESOP Tax (Eligible Startups):

  12. Income from Virtual Digital Assets (VDAs)

  13. TDS under Section 

• • ITR-1 cannot be used by Hindu Undivided Families (HUFs), partnerships, LLPs, or any entity other than individual resident persons.

  • In cases of refund claims or TDS reconciliation, one must ensure accurate AIS and Form 26AS records before submitting the ITR.

• The ITR-1 form is divided into several parts and schedules to capture an individual taxpayer’s income details, deductions, tax computation, and verification. Here's a section-wise explanation:

  
  

  Part A – General Information

  
  

  This section captures the taxpayer’s basic identification and contact information, which includes:

  
  

  • PAN (Permanent Account Number)

  • Aadhaar Number (Mandatory per Section 139AA)

  • Name of the Assessee (as per PAN database)

  • Date of Birth (for individuals) or Date of Incorporation (if applicable)

  • Mobile Number and Email ID

  • Residential Status (only for Resident and Ordinarily Resident individuals)

  • Filing Status (Original/Revised Return)

  • Assessment Year: AY 2025–26

  • ITR Filing Type (e.g., filed under Section 139(1), 139(4), 139(5), etc.)

  
  

  Part B – Gross Total Income

  
  

  This part captures the computation of gross total income before any deductions:

  
  

  Income from Salary/Pension:
  

  
  

  • Includes basic salary, allowances, perquisites, bonus, gratuity, etc., as reported in Form 16.

  
  

  Income from House Property:

  
  

  • Only one house property is allowed.
  • Deductions under Section 24(b) (interest on home loan) can be claimed if applicable.

  
  

  Income from Other Sources:

  
  

  • Interest income from savings accounts, fixed deposits, recurring deposits, post office schemes, etc.
  • Excludes casual income like lottery winnings or racehorse income.

  
  

  Total of the above heads constitutes the Gross Total Income (GTI).

  
  

  Part C – Deductions and Taxable Total Income

  
  

  This section allows deductions under Chapter VI-A, such as:

  
  

  • Section 80C (LIC, PPF, ELSS, tuition fees, etc.)

  • Section 80D (medical insurance premiums)

  • Section 80TTA (interest on savings account up to ₹10,000)

  • Section 80G (donations to charitable institutions)

  • Section 80U (for individuals with disability), if applicable

  
  

  After deductions, the Net Taxable Income is computed.

  
  

  Part D – Computation of Tax Payable

  
  

  This section automatically computes:

  
  

  • Tax on total income using applicable slab rates

  • Rebate under Section 87A (available for income up to ₹7 lakh)

  • Health and Education Cess @ 4%

  • Relief under Section 89 (if applicable)

  • Total tax liability

  • Less: TDS/TCS, Advance Tax, Self-Assessment Tax

  • Final Tax Payable or Refund Due

  
  

  Part E – Other Information (Bank Account Details)

  
  

  In this section, taxpayers must declare all active bank accounts held in India during the year:

  
  

  • Bank Name

  • IFSC Code

  • Account Number

  • Type of Account (Savings/Current)

  • One account must be selected for refund credit (if applicable)

  
  

  Schedule IT – Details of Advance Tax and Self-Assessment Tax

  
  

  If you have paid advance tax or any self-assessment tax, mention the following:

  
  

  • BSR Code of bank branch

  • Date of Deposit

  • Serial Number of Challan

  • Amount Paid

  
  

  Schedule TDS – Tax Deducted at Source (TDS/TCS Details)

  
  

  This section is pre-filled from Form 26AS and AIS:

  
  

  • TDS from Salary (Form 16)

  • TDS from Non-Salary (Form 16A)

  • TCS (if any)

  • TAN of Deductor, Amount Deducted, and Amount Claimed

  
  

  Verification Section

  
  

  The taxpayer must verify the return by digitally signing (DSC), e-verifying using Aadhaar OTP, net banking, or by sending a signed ITR-V to CPC, Bengaluru.

  
  

  • Declaration that all details provided are true and correct

  • Signature (digital or manual)

  • Date and Place of filing

  
  

  Not Sure Which ITR Form to Use?

  
  

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  Our experts will analyze your income structure, sources, and deductions and guide you on the appropriate ITR form while ensuring 100% compliance with the Income Tax Act, 1961.

  
  

• If you file your ITR-1 after the due date (31st July 2025), you will be liable for late filing fees under Section 234F of the Income Tax Act.

  
  

  Here’s a breakdown of penalties for late ITR-1 filing:

  
  

  Filing Date	Total Income Below ₹5 Lakh	Total Income Above ₹5 Lakh
  After 31st July but before 31st Dec 2025	₹1,000	₹5,000
  After 31st Dec 2025 but before 31st Mar 2026	₹1,000	₹5,000

  
  

  
  

  Note: No penalty if your total income is below the taxable limit.

  
  

  Additional Consequences of Late Filing:

  
  

  • Loss of Interest on Refunds: If you’re eligible for a tax refund, filing late may reduce the interest you receive from the Income Tax Department.
  • Cannot Carry Forward Losses: Losses under the head “Income from House Property” or “Capital Gains” cannot be carried forward if the return is filed late.
  • Interest on Outstanding Tax (Section 234A): You may also have to pay 1% interest per month on any unpaid tax amount after the due date.

  
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