ITR-1 for 2025-26 income: eligibility, filing steps and common mistakes
ITR-1 is designed for resident individuals with straightforward income. The form is short and largely pre-filled, but you are responsible for every figure in it. This guide explains who can use ITR-1 for income earned in 2025-26, who cannot, and how to file it correctly.
Who can file ITR-1
- Resident individuals, other than those who are not ordinarily resident
- Total income up to ₹50 lakh
- Income from salary or pension
- Income from up to two house properties, a change from earlier years when only one was allowed
- Interest, dividends and family pension under other sources
- Long-term capital gains on listed shares and equity funds up to ₹1.25 lakh, with no losses brought forward or carried forward
- Agricultural income up to ₹5,000
Who cannot file ITR-1
- Non-residents and residents who are not ordinarily resident
- Anyone with total income above ₹50 lakh
- Company directors
- Anyone who held unlisted equity shares at any time in the year
- Anyone with foreign assets, foreign income or signing authority over a foreign account
- Anyone claiming foreign tax credit or treaty relief
- People with business or professional income
- People with short-term capital gains, or capital gains beyond the allowed long-term gains
- People with income from more than two house properties, or from virtual digital assets
Choosing the regime in ITR-1
New regime (default)
- Standard deduction of ₹75,000
- No tax on total income up to ₹12 lakh after rebate
- Lower slab rates
- Employer NPS contribution allowed
- Most other deductions not allowed
Old regime (by choice)
- Standard deduction of ₹50,000
- Rebate up to total income of ₹5 lakh
- Higher slab rates
- Section 80C up to ₹1.5 lakh, health insurance, NPS
- House rent allowance and home loan interest
Salaried people can choose the regime each year in their return, regardless of what they told their employer. Compare both before filing; our ITR preparation page shows a worked example.
Deductions under the old regime
| Deduction | Typical limit |
|---|---|
| Section 80C: provident fund, PPF, life insurance, ELSS, tuition fees, home loan principal | ₹1.5 lakh |
| Section 80CCD(1B): additional NPS contribution | ₹50,000 |
| Section 80D: health insurance for self, family and parents | ₹25,000 each, ₹50,000 for senior citizens |
| Section 80TTA: savings account interest | ₹10,000 |
| Home loan interest on a self-occupied house | ₹2 lakh |
What to check in your Form 16
- Your PAN, the employer's TAN and the assessment year are correct
- Gross salary matches your salary slips and AIS
- Exemptions such as house rent allowance are supported by your documents
- The tax regime used by the employer matches your choice, or you change it in the return
- TDS shown in Form 16 matches Form 26AS
- Perquisites, such as company car or ESOPs, are included if applicable
How to file ITR-1 on the portal
- Log in to the e-filing portal with your PAN and password
- Download and check AIS and Form 26AS
- Go to e-File, then Income Tax Returns, then File Income Tax Return, and choose the assessment year 2026-27
- Select online filing, your status as individual and ITR-1
- Check the pre-filled personal details, salary, interest and tax credits
- Choose the tax regime, and add deductions if you choose the old regime
- Add any income not pre-filled, such as interest from other banks or rent
- Pay any tax due and enter the challan details
- Preview, submit and e-verify the return within 30 days
For the wider process, see our income tax e-filing overview.
Common ITR-1 mistakes
- Using ITR-1 while holding US shares, unlisted shares or a directorship
- Not reporting interest from savings accounts and fixed deposits because it was small
- Two employers in the year, with the basic exemption and standard deduction counted twice in payroll
- Claiming house rent allowance without rent receipts or the landlord's PAN where required
- Choosing the old regime without enough deductions to make it worthwhile
- Mismatch between salary in the return and Form 16 or AIS
- Not e-verifying the return within 30 days
If you receive a notice after filing, our income tax notice team can help you respond.
Changing jobs during the year
If you worked for two employers in the year, each may have given you the basic exemption, standard deduction and lower slabs, so too little tax was deducted overall. Your return must combine both salaries. Use both Forms 16, check the combined salary against AIS, and pay any shortfall as self-assessment tax before filing. Declaring your previous salary to the new employer during the year avoids this next time.
After filing ITR-1
Most ITR-1 returns are processed quickly. You receive an intimation by email confirming the tax position. Refunds are paid to your pre-validated bank account with interest where applicable. If you find a mistake later, you can file a revised return by March 31, 2027, or an updated return later with additional tax.