File ITR-1 for AY 2025-26 Yourself: Step-by-Step Guide with Salary Examples (Old vs New Regime)

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by

Himanshu
in

📄 What is ITR-1 (Sahaj)?

ITR-1 is for resident individuals (not HUF) having:

  • Income from Salary/Pension
  • One House Property
  • Other Sources (like interest)
  • Total income up to ₹50 lakh

❌ Not applicable if:

  • You’re a director in a company
  • Own foreign assets
  • Have capital gains or business income

🧾 Documents Required

  1. Form 16 – from your employer
  2. Form 26AS – tax credit summary
  3. AIS (Annual Information Statement) – full record of your income
  4. Bank statement – for interest income
  5. Investment proofs – 80C, 80D, etc.
  6. Aadhaar, PAN, and bank account details

📌 What is Form 26AS?

  • It shows TDS (Tax Deducted at Source) details – by employer, banks, etc.
  • Verify your tax has been correctly deducted and deposited.

🔽 Where to download:

  1. Go to https://incometax.gov.in
  2. Login → Go to e-File → Income Tax Returns → View Form 26AS

📌 What is AIS (Annual Information Statement)?

  • AIS shows a consolidated view of all your income – salary, interest, dividends, shares, etc.
  • Cross-check your declared income.

🔽 Where to find:

  1. Login to https://incometax.gov.in
  2. Click AIS on the top menu
  3. Download the PDF/JSON for verification

🧮 How to File ITR-1: Step-by-Step

  1. Login to the Income Tax Portal
  2. Go to e-File → Income Tax Return
  3. Select:
    • Assessment Year: 2025-26
    • ITR Form: ITR-1
    • Filing Type: Original
    • Submission: Online
  4. Auto-filled data will appear from:
    • Form 26AS
    • AIS
    • PAN-Aadhaar linked info
  5. Verify each section:
    • Personal Info
    • Salary Income
    • Deductions (80C, 80D, etc.)
    • Tax Details (TDS from Form 26AS)
  6. Preview and Validate
  7. Submit and e-verify (via Aadhaar OTP or Netbanking)

💰 Example-wise Tax Comparison (Old vs New Regime)

Assumptions:

  • Only salary income
  • No business or capital gains
  • Standard deduction: ₹50,000 (Old Regime only)
  • Section 80C: ₹1,50,000
  • Section 80D (health insurance): ₹25,000
Gross SalaryOld Regime (after deductions)Tax (Old Regime)Tax (New Regime)
₹5,00,000₹2,75,000₹0 (Rebate u/s 87A)₹0 (Rebate u/s 87A)
₹7,00,000₹5,25,000₹10,400₹0 (Rebate u/s 87A)
₹10,00,000₹7,75,000₹70,200₹54,600
₹12,50,000₹10,25,000₹1,30,800₹93,600
₹16,00,000₹13,75,000₹2,38,200₹1,62,000
₹20,00,000₹17,75,000₹3,57,000₹2,34,000
₹25,00,000₹22,75,000₹5,35,800₹3,72,000

🧮 Tax calculated after standard deduction & 80C/80D for Old Regime.

🆚 Old vs New Tax Regime Slabs (FY 2024-25)

✅ New Regime (Default):

Income SlabTax Rate
0 – ₹3,00,0000%
₹3,00,001 – ₹6,00,0005%
₹6,00,001 – ₹9,00,00010%
₹9,00,001 – ₹12,00,00015%
₹12,00,001 – ₹15,00,00020%
Above ₹15,00,00030%

No deductions (80C, 80D, etc.) but standard deduction ₹50,000 is now allowed in new regime from FY 2023-24 onwards.

✅ Old Regime:

Income SlabTax Rate
0 – ₹2,50,0000%
₹2,50,001 – ₹5,00,0005%
₹5,00,001 – ₹10,00,00020%
Above ₹10,00,00030%

You can claim all deductions (80C, 80D, HRA, LTA, home loan interest, etc.)

📌 Which regime is better?

  • Up to ₹7 lakh: New Regime (100% tax rebate)
  • ₹7–10 lakh: New regime may be better if you don’t have many deductions
  • ₹10–20 lakh: If you claim full 80C + 80D + HRA + home loan, Old Regime may save more
  • ₹20 lakh+ with fewer deductions: New Regime usually wins

✅ Use the Income Tax Calculator on the portal to compare.

🎯 Final Checklist Before Submitting ITR

✔ Cross-check income from Form 16 with AIS & 26AS
✔ Declare all interest income
✔ Choose tax regime carefully
✔ E-verify after filing
✔ Keep ITR-V or acknowledgment safely

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