21 reasons you shouldn't file ITR-1 (Sahaj) form in 2025. Do you know any?

Filing Income Tax Return Form 1, or ITR-1, is required if your total income is below ₹50 lakh and your money comes mostly from salary, pension, bank interest, one-house property, or equity LTCG up to ₹1.25 lakh.

When you cannot file ITR-1

You cannot file ITR-1 in the following situations or reasons:

1. If you are a Resident Not Ordinarily Resident (RNOR), and Non-Resident Indian (NRI).
2. If your total income is above ₹ 50 lakh
3. If you have an agricultural income exceeding ₹ 5,000
4. If you have an income from lotteries, racehorses, etc.
5. If you have a taxable short-term capital gain
6. If you have long-term capital gains taxable under section 112
7. If your long-term capital gains under section 112A are over ₹1.25 lakh.
8. If you have held any unlisted equity shares at any time during the previous year.
9. If you have income from a business or profession.
10. If you are a Director in a company
11. If you have a tax deduction under section 194N of the Income-tax Act, 1961
12. If you have deferred income tax on ESOP received from the employer being an eligible start-up
13. If you own and have income from more than one house property
14. If you have income taxable at special rates under section 115BBDA and 115BBE
15. If you have income to be apportioned in accordance with the provisions of section 5A.
16. If you have assets (including financial interest in any entity) located outside India
17. If you are a signing authority on any account located outside India
18. If you have income from any source outside India
19. If you have claimed a deduction under section 57, other than a deduction in respect of family pension.
20. If you have claimed relief under section 90 or 90A or deduction of tax under section 91.
21. If you are assessable for the whole or any part of the income on which tax has been deducted at source in the hands of a person other than the assessee.

Who should file ITR-1?

Now that you know the reasons/situations for which ITR-1 should not be filed, let's have a look at the reasons for which you should file ITR.

A resident individual having a total income not exceeding ₹50 lakh should file ITR-1. The total income should include income from the following sources:

• Salary or family pension,
• Income from house property, where the individual does not own more than one house property. Also, the ITR-1 filer should not have any brought forward loss or loss to be carried forward under this head
• Income from other sources, except winnings from the lottery or income from race horses. Also, he should not have any loss under this head*.
• agricultural income up to ₹5,000
• Long-term capital gain u/s 112A up to ₹1.25 lakh. No brought forward loss or loss to be carried forward under the head.

Further, the income of a spouse (other than those covered under the Portuguese Civil Code) or minor clubbed should include only income from sources and the limits specified above.

*Please note that for filing ITR 1, income from other sources can comprise interest from savings accounts, interest from deposits (Bank / Post Office /Cooperative Society), interest from income-tax refund, interest received on enhanced compensation, and any other Interest Income

The due date to file ITR for AY 2025-26 is September 15, 2025 for non-audit cases.