In a significant move towards enhancing taxpayer convenience and reducing the compliance burden, the Finance Minister of India recently announced the introduction of a new simplified Income Tax Return form — ITR-1A. This streamlined form is designed to cater to a wider segment of small and middle-income taxpayers, especially salaried individuals and pensioners, making the filing process faster, easier, and more user-friendly.

Let’s understand what this new development entails and how it will impact the Indian tax landscape.       

📌 What is ITR-1A?

The newly introduced ITR-1A is a simplified version of existing income tax return forms, aimed at taxpayers with straightforward income profiles. It is expected to replace or coexist with the current ITR-1 (Sahaj), which is already used by individuals earning income from salary, one house property, and other sources (excluding lottery winnings and income from racehorses).

✅ Key Features of ITR-1A                                       

Here are some major highlights and features of ITR-1A:

 1. Simplified Format

• 
  The new ITR-1A form has fewer fields, minimal data entry, and uses a pre-filled return format.

• Designed to avoid confusion and reduce errors.

👨‍💼 2. Eligibility

• Resident Individuals

• Income up to ₹50 lakh

• Income from salary/pension, one house property, and other sources (excluding winnings or capital gains)

• Not applicable for HUFs, non-residents, or those with foreign assets/income

 3. AI-Driven Pre-Filled Data

• Uses Artificial Intelligence to pre-fill PAN details, salary income (as per Form 16), interest from banks (Form 26AS & AIS), and tax paid (TDS/TCS).

• Reduces manual effort and mismatches.

⌛ 4. Time-Saving

• Filing ITR using ITR-1A is expected to take less than 10 minutes for individuals with all documents ready.

📲 5. Mobile-Friendly Interface

• The Income Tax Department will soon launch a mobile-responsive interface on the e-filing portal tailored for ITR-1A.

📊 Comparison: ITR-1 vs ITR-1A

💼 Why Was ITR-1A Introduced?

The Finance Minister, in her speech, mentioned that simplification and digitization are core pillars of the government's mission for "Ease of Doing Compliance." With over 7 crore taxpayers expected to file returns in FY 2024-25, the ITR-1A is seen as a major reform to reduce the compliance burden on salaried individuals and small taxpayers.                  

• Increasing digital adoption

• Faster refund processing

• Reducing manual errors

• Aligning with global best practices in tax filing

🏦 Who Should Use ITR-1A?

You should consider using ITR-1A if:

• Your total income is below ₹50 lakh

• You earn from salary/pension, one house property, or interest

• You don’t have:

  • Capital gains

  • Foreign assets or income

  • Business or professional income

  • Agricultural income exceeding ₹5,000

📥 How to File ITR-1A?                                                                   

Filing ITR-1A is straightforward:

1. 
   Log in to https://www.incometax.gov.in

2. Navigate to ‘e-File > Income Tax Returns > File Income Tax Return’

3. Choose ITR-1A, if eligible

4. Verify pre-filled information

5. Submit and e-verify your return

The portal will soon include a wizard-based UI that helps choose between ITR-1 and ITR-1A based on your income profile.

🔐 Security & Accuracy Enhancements

• The new system uses end-to-end encryption of personal data.

• In-built validations and error prompts reduce submission of incorrect data.

• Integration with bank portals ensures easier refund tracking and automatic account verification.

🚀 Benefits of ITR-1A for the Taxpayer                                                                                    

Benefit	Impact
🔽 Reduced Fields	Less data entry
🧠 AI Pre-Fill	Saves time and reduces errors
📱 Mobile Compatible	File ITR anytime, anywhere
💸 Faster Refunds	More accurate filing speeds up refunds
🛡️ Enhanced Security	Better protection of sensitive data
🌐 Easy Verification	Aadhaar OTP / Net Banking e-verification

🗓️ When Will ITR-1A Be Applicable?

As per official statements, ITR-1A will be applicable for FY 2024-25 (AY 2025-26). The final notification is awaited, and the Income Tax Department will release detailed instructions along with a utility on the portal.

 Final Thoughts

The introduction of ITR-1A is a commendable step toward streamlining India's income tax compliance framework. For millions of salaried taxpayers, this could mean fewer errors, less time spent, and a smoother filing experience. With the combination of AI, pre-filled data, mobile-friendly access, and faster refunds, ITR-1A could very well become the preferred form for straightforward income cases.

🔗 For Expert Assistance:
Visit www.taxaj.com or reach out to TAXAJ Corporate Services LLP for professional tax filing support.