ITR-1 (Sahaj) AY 2026-27: Eligibility, Changes and How to File
ITR-1, also known as Sahaj, is the simplest income tax return form available for resident individual taxpayers in India. The Income Tax Department enabled online filing and Excel utilities for ITR-1 for AY 2026-27 on May 15, 2026. The due date to file ITR-1 for FY 2025-26 is July 31, 2026.
This guide covers who can and cannot file ITR-1 for AY 2026-27, the key changes introduced this year, the documents required, and the complete step-by-step online filing process.
Who Can File ITR-1 (Sahaj) AY 2026-27
ITR-1 can be filed by a resident individual whose total income for FY 2025-26 does not exceed Rs. 50 lakh and whose income comes from the following sources:
- Salary or pension
- Income from up to two house properties (new for AY 2026-27, previously limited to one)
- Income from other sources such as savings account interest, fixed deposit interest and family pension
- Long-term capital gains under Section 112A from listed shares and equity mutual funds up to Rs. 1.25 lakh, provided there are no capital loss adjustments and gains do not exceed Rs. 1.25 lakh
- Agricultural income up to Rs. 5,000
Who Cannot File ITR-1
ITR-1 cannot be used in the following situations:
- Total income exceeds Rs. 50 lakh
- Income from more than two house properties
- Income from business or profession
- Long-term capital gains under Section 112A exceeding Rs. 1.25 lakh (ITR-2 must be filed instead)
- Short-term capital gains, F&O income or any capital losses requiring set-off or carry-forward
- Brought forward losses from previous years
- Holding or investment in unlisted equity shares at any time during FY 2025-26
- Assets including financial interest in any entity located outside India
- Tax deducted under Section 194N on cash withdrawal above the prescribed threshold
- Income tax deferred on ESOPs from eligible startups
- Director in a company
- Non-resident or not-ordinarily resident individual
If any of the above apply, ITR-2 or ITR-3 must be used. For a complete guide on selecting the right ITR form, see New ITR Forms AY 2026-27: Who Should File Which Form.
Key Changes in ITR-1 for AY 2026-27
1. Two House Properties Now Allowed
From AY 2026-27, taxpayers can disclose income from up to two house properties in ITR-1, rather than just one. This is the most significant eligibility change in the form this year. Previously, a taxpayer with two house properties had to file ITR-2.
In the portal, taxpayers must calculate income or loss separately for each property, including interest on housing loans and municipal taxes. The total income must still remain within the Rs. 50 lakh limit to stay eligible for ITR-1.
2. Unrealized Rent Field Added
A new specific field for rent which cannot be realized has been added in the house property schedule. This aids accurate reporting for landlords with defaulting tenants.
3. Section 24(b) Loan Details Mandatory
The schedule for Section 24(b) interest on borrowed capital requires taxpayers to furnish the following details: the lender from whom the loan was taken, the name of the institution or bank, and the loan account number. These details must be entered for any home loan interest deduction claimed.
4. Deductions Dropdown Selection
Deductions under Sections 80C to 80U must now be selected from a drop-down menu in the e-filing portal, and the exact clause or sub-section must be specified. This improves accuracy and transparency in deduction claims.
5. LTCG Under Section 112A Now Included
Taxpayers with long-term capital gains up to Rs. 1.25 lakh from listed equity shares or equity mutual funds can now report them in ITR-1 itself, provided there are no capital loss adjustments and gains do not exceed Rs. 1.25 lakh. This removes the need to file ITR-2 for straightforward equity investments below the exemption threshold. If LTCG exceeds Rs. 1.25 lakh, ITR-2 is mandatory.
6. Representative Filing for Senior Citizens
Senior citizens with health issues who cannot file themselves can now be represented by a family member. Only the representative’s name, contact number and email ID are required in ITR-1.
7. Secondary Contact Details Added
ITR-1 filers can now provide both a primary and secondary mobile number and email address, which is helpful for taxpayers who want a family member notified of tax communications. A new field for a secondary address has also been added.
Applicable Tax Regime for AY 2026-27
For AY 2026-27, the new tax regime is the default tax regime. The option to opt out of the new regime is set to No by default on the portal. To file under the old tax regime, select Yes in the Personal Information section on the e-filing portal.
Under the new tax regime, income up to Rs. 12 lakh is effectively tax-free for resident individuals due to the Section 87A rebate of up to Rs. 60,000. For salaried individuals, after the standard deduction of Rs. 75,000, gross salary up to Rs. 12.75 lakh results in zero tax liability under the new regime.
Note: The Section 87A rebate does not apply to tax on capital gains under Section 111A (STCG) or Section 112A (LTCG), even if total income is within the Rs. 12 lakh threshold. ITR-1 filers with LTCG under Section 112A must verify the tax computation on capital gains separately.
Under the old tax regime, the standard deduction is Rs. 50,000. Deductions under Chapter VI-A such as Section 80C, 80D, 80E and others are available only under the old regime. The Section 87A rebate under the old regime is up to Rs. 12,500 for total income up to Rs. 5 lakh.
For a detailed comparison of tax liability under both regimes at different income levels, see Income Tax Slabs FY 2025-26: New vs Old Regime Comparison.
Documents Required to File ITR-1
| Document | Purpose |
|---|---|
| Form 16 (Part A and Part B) | TDS and salary details from employer |
| Form 26AS | Tax credit statement |
| Annual Information Statement (AIS) | Complete income and TDS data |
| Taxpayer Information Summary (TIS) | Processed version of AIS for pre-fill |
| Bank account statements | Interest income from savings and FDs |
| Home loan interest certificate | Section 24(b) deduction claim |
| Rent receipts (if HRA claimed) | HRA exemption under old regime |
| Investment proofs | Section 80C, 80D, 80CCD(1B) deductions |
| Aadhaar and PAN | Identity verification and e-verification |
For a complete guide on how to read and reconcile AIS and Form 26AS before filing, see AIS vs Form 26AS: Differences and How to Use Both for ITR.
How to File ITR-1 Online for AY 2026-27
Step 1: Check AIS and Form 26AS
Before starting, log in to incometax.gov.in and go to e-File, then AIS. Review your Annual Information Statement for all income entries including salary, interest, dividends and TDS. Cross-check these against your own records. Dispute any incorrect entries before filing. For detailed guidance on reading AIS and Form 26AS, see How to Read Form 26AS and AIS: Complete Guide FY 2025-26.
Step 2: Log in to the e-Filing Portal
Go to incometax.gov.in and log in using your PAN as user ID and your registered password. If you have not registered, click Register and complete the one-time registration process.
Step 3: Start Filing ITR-1
Go to e-File, then Income Tax Returns, then File Income Tax Return. Select Assessment Year 2026-27 and choose Online as the filing mode. Select ITR-1 from the list of forms. Ensure you select Tab 1 (Income Tax Act 1961) on the portal. Tab 2 is for Tax Year 2026-27 returns filed in 2027 and must not be used for FY 2025-26 returns.
Step 4: Select the Reason for Filing
Choose the applicable reason:
- Taxable income above basic exemption limit
- Mandatory filing due to high-value transactions under Section 139(1) seventh proviso
- Refund claim
- Any other applicable reason
Step 5: Verify Pre-Filled Data
The portal auto-populates data from your AIS, TIS, Form 26AS and employer TDS returns. Review each section carefully:
- Personal information (name, PAN, Aadhaar, address, bank account)
- Salary income (match with Form 16 Part B)
- House property income (enter details for up to two properties separately)
- Other sources income (savings interest, FD interest, family pension)
- TDS entries (match with Form 26AS)
Edit any pre-filled data that is incorrect before proceeding.
Step 6: Select Tax Regime
The new tax regime is selected by default. To file under the old tax regime and claim Chapter VI-A deductions, select Yes for opting out of the new regime in the Personal Information section. The portal will then display the deductions schedule.
Step 7: Enter Deductions (Old Regime Only)
If filing under the old regime, select the applicable deductions from the dropdown menus. Each deduction requires selection of the exact section and sub-section. Common deductions include:
- Section 80C: PPF, ELSS, life insurance premium, home loan principal, tuition fees (up to Rs. 1.5 lakh)
- Section 80D: Health insurance premium
- Section 80CCD(1B): Additional NPS contribution (up to Rs. 50,000)
- Section 24(b): Home loan interest (enter lender name, bank name and loan account number)
Step 8: Review Tax Computation
The portal automatically calculates tax liability based on the income and deductions entered. Review the tax computation summary showing gross total income, deductions claimed, total taxable income, and tax payable or refund due.
Step 9: Pay Any Balance Tax
If the computation shows a balance tax payable after accounting for TDS and advance tax, pay the self-assessment tax through the e-Pay Tax option on the portal before submitting the return. Enter the challan details in the Tax Details section of the ITR.
Step 10: Preview and Submit
Preview the complete return before submission. Verify all sections one final time. Click Submit.
Step 11: E-Verify the Return
After submission, e-verify the return within 30 days. The portal offers the following e-verification methods:
- Aadhaar OTP (recommended for fastest processing)
- Net banking EVC
- Bank account EVC
- Demat account EVC
- Digital Signature Certificate (DSC)
If you do not e-verify within 30 days, the return is treated as not filed. For a complete guide on all e-verification methods and steps, see How to Verify ITR After Filing: E-Verification Guide 2026.
ITR-1 Due Dates for AY 2026-27
| Category | Due Date |
|---|---|
| Normal filing (no audit required) | July 31, 2026 |
| Belated return | December 31, 2026 |
| Revised return | March 31, 2027 |
| Updated return (ITR-U) | March 31, 2031 |
A late fee of Rs. 5,000 applies if the return is filed after July 31, 2026 and before December 31, 2026. If total income does not exceed Rs. 5 lakh, the late fee is capped at Rs. 1,000. For all ITR filing deadlines including audit cases, see ITR Filing Last Date 2026: All Due Dates for AY 2026-27.
Key Facts at a Glance
| Point | Detail |
|---|---|
| Form name | ITR-1 (Sahaj) |
| Applicable to | Resident individuals only |
| Income limit | Up to Rs. 50 lakh total income |
| Salary or pension | Allowed |
| House properties | Up to two (new for AY 2026-27) |
| LTCG under Section 112A | Allowed up to Rs. 1.25 lakh, no loss adjustment |
| Unlisted equity shares | Cannot file ITR-1 if held at any time during FY |
| Foreign assets | Cannot file ITR-1 if any foreign assets or interest |
| Default tax regime | New tax regime |
| Section 87A rebate (new regime) | Up to Rs. 60,000 for income up to Rs. 12 lakh |
| Section 87A rebate (old regime) | Up to Rs. 12,500 for income up to Rs. 5 lakh |
| Effective zero tax limit (salaried) | Rs. 12.75 lakh under new regime after standard deduction |
| Online filing enabled from | May 15, 2026 |
| Due date | July 31, 2026 |
| Belated return deadline | December 31, 2026 |
| Revised return deadline | March 31, 2027 |
| ITR-U deadline | March 31, 2031 |
| E-verification deadline | 30 days from submission |
