CBDT Notifies ITR-1 & ITR-2 for AY 2025–26: Key Changes, Applicability & Filing Guide
What is ITR-1 (SAHAJ) and Who Can File It?
ITR-1 (SAHAJ) Applicability
✅ Applicable If:
- You are a resident individual (not HUF or company)
- Total income does not exceed ₹50 lakh
- Income sources include salary or pension
- Income from one house property
- Income from other sources (interest, dividend)
- Agricultural income up to ₹5,000
❌ Not Applicable If:
- You're a director in a company
- You've held unlisted equity shares
- You have capital gains, foreign income, or business/professional income
Who Should File ITR-2 for AY 2025–26?
ITR-2 Applicability
✅ Applicable If:
- You earn income from salary or pension
- You have multiple house properties
- You have capital gains (long or short term)
- You have foreign assets/income
- Income from other sources like lottery or horse racing
❌ Not Applicable If:
- You have income from business or profession (use ITR-3 instead)
Key Changes in ITR-1 & ITR-2 for AY 2025–26
| Feature | AY 2024–25 | AY 2025–26 |
|---|---|---|
| Default Tax Regime | Old Regime | New Regime (u/s 115BAC) |
| Salary Disclosure | Basic structure | Detailed salary components |
| Form 16 Alignment | Previous format | Updated as per Form 24Q |
| Capital Gains Info | Basic input | Granular capital gains reporting |
| TDS Matching | Manual review | Integration with AIS/TIS |
Notable Additions in AY 2025–26 ITR Forms
1. New Tax Regime as Default (Section 115BAC)
- All individuals will be taxed under the new regime unless they opt out
- Business/professional taxpayers must submit Form 10-IEA to continue with the old regime
2. Improved Salary Breakup
- Basic salary
- Allowances (HRA, LTA, others)
- Perquisites and retirement benefits
3. Detailed Chapter VI-A Deductions
- Section 80C (LIC, PPF, ELSS)
- Section 80D (medical insurance)
- Section 80G (donations)
4. AIS/TIS Compatibility
- Taxpayers are advised to cross-check data with AIS (Annual Information Statement) and TIS (Taxpayer Information Summary) on the income tax portal
Documents Required to File ITR-1 or ITR-2
Before you begin filing your return on ReduceTax.in, keep the following ready:
- PAN and Aadhaar card
- Form 16 from your employer
- Form 26AS and AIS download
- Interest certificates from banks
- Capital gains statements (if applicable)
- Proof of deductions under 80C, 80D, etc.
Filing Tips for AY 2025–26
Use our Tax Regime Comparison Tool to check which option saves more tax.
Avoid mismatches that lead to scrutiny.
Even exempt income (like agricultural income) should be reported.
Use e-verification via Aadhaar OTP or net banking.
File before July 31, 2025 to avoid late fees.
Compare Old vs New Tax Regime
Not sure which tax regime will save you more money? Use our calculator to find out!
Download ITR-1 & ITR-2 Forms
Visit the official Income Tax India e-Filing Portal to download the latest ITR-1 and ITR-2 in PDF or Excel format. Or file directly online via ReduceTax.in for a guided experience.
Conclusion
Filing your Income Tax Return for AY 2025–26 just got simpler with the early release of ITR forms by CBDT. Whether you're a salaried employee, investor, or HUF, choosing the correct form (ITR-1 or ITR-2) and tax regime can save you both time and money. Use ReduceTax.in to file your returns securely, accurately, and affordably.
Frequently Asked Questions
A: The last date to file ITR for AY 2025-26 (FY 2024-25) is July 31, 2025 for individuals not requiring tax audit.
A: Yes, salaried individuals can switch between tax regimes each year. However, those with business income have different rules for switching back to the old regime once they opt for the new regime.
A: Filing the wrong ITR form may lead to defective returns, notices from the tax department, or potential scrutiny. Always verify your eligibility before selecting an ITR form.
A: Yes, you must report all interest income in your ITR regardless of whether TDS has been deducted or not.