ITR-1 Sahaj Filing Guide for AY 2026-27

ITR-1 Sahaj Filing Guide for AY 2026-27

ITR-1 Sahaj is the most-used income tax return form in India. Salaried employees, pensioners, and small landlords with simple income profiles file it every year, often within an hour of opening the e-filing portal. The form is short, mostly pre-filled, and intentionally restricted in scope. That last point is what trips people up: cross any of the eligibility lines and you have to move to ITR-2 or ITR-3.

This guide walks through who qualifies for AY 2026-27, the changes the CBDT notified for this year, the section-by-section flow on the portal, and the deductions worth claiming.

Who Can File ITR-1 for AY 2026-27

You can file ITR-1 if all of the following apply:

• You are a resident individual (not RNOR, not NRI, not HUF).
• Your total income is up to Rs 50 lakh for FY 2025-26.
• Your income comes from any combination of:
  • Salary or pension
  • Income from house property, now up to two house properties for AY 2026-27
  • Other sources (interest from savings, fixed deposits, dividends, family pension)
  • Long-term capital gains under Section 112A up to Rs 1.25 lakh (listed equity shares and equity mutual funds held over 12 months)
  • Agricultural income up to Rs 5,000

If your salary slip, a couple of FD interest entries, and one or two rental properties are the whole picture, ITR-1 is your form. The portal pre-fills most of it from Form 130, AIS, and Form 26AS, and the validation rules are forgiving.

Who Cannot File ITR-1

You must move to ITR-2 or ITR-3 if any of these apply:

• Your total income exceeds Rs 50 lakh from any combination of sources.
• You have capital gains other than Section 112A LTCG up to Rs 1.25 lakh. Short-term capital gains, debt mutual fund gains, property sale gains, and crypto/VDA gains all disqualify ITR-1.
• You are a director in any company, listed or unlisted.
• You hold unlisted equity shares at any point during the year.
• You have TDS deducted under Section 194N (cash withdrawals above Rs 1 crore from banks).
• You have ESOP tax deferred under Section 17(2) for shares of an eligible startup.
• You have foreign assets, foreign income, or signing authority on a foreign account.
• You are an NRI or RNOR.
• You are an HUF (use ITR-2, ITR-3, or ITR-4 based on income mix).
• You have business or professional income (use ITR-3 or ITR-4).
• You have more than two house properties.
• You have agricultural income above Rs 5,000.
• You have brought-forward losses to set off (other than house property loss in some cases).

The capital gains and foreign asset lines catch the most filers off guard. A single redemption of a debt mutual fund, a Vested or IndMoney account holding US stocks, or a sale of crypto during the year is enough to push you into ITR-2.

What Changed in ITR-1 for AY 2026-27

1. Two House Properties Now Allowed

This is the headline expansion. ITR-1 historically allowed income from only one house property. From AY 2026-27, the form covers up to two house properties. This affects a large group of small landlords and self-occupied-plus-let-out cases who were previously forced into ITR-2 just because of an extra property.

If you have a self-occupied home and a rented flat, or two self-occupied properties (only two can be treated as self-occupied under current law), you can now stay in ITR-1 instead of moving to ITR-2.

2. LTCG Under Section 112A Up to Rs 1.25 Lakh

The Rs 1.25 lakh annual exemption on long-term capital gains from listed equity shares and equity mutual funds (Section 112A) is also accommodated within ITR-1. If your total Section 112A LTCG for the year is Rs 1.25 lakh or below, you can declare it in ITR-1 without escalating to ITR-2. Cross Rs 1.25 lakh, and ITR-2 becomes mandatory because the taxable portion needs the full Schedule CG.

3. Standard Deduction Updated

For the new tax regime under Section 115BAC (default regime from FY 2024-25), the standard deduction on salary or pension income is Rs 75,000. For the old regime, it remains Rs 50,000. The form pre-fills the figure based on your regime selection.

4. Filing Deadline: July 31, 2026

ITR-1 filers are non-audit by definition. The statutory due date remains July 31, 2026 for AY 2026-27. The August 31 extension that applies to ITR-3 and ITR-4 under the Finance Act 2026 does not extend to ITR-1. Belated returns can be filed up to December 31, 2026 with a Section 234F late filing fee (Rs 1,000 if total income is up to Rs 5 lakh; Rs 5,000 otherwise).

Documents to Keep Ready Before You Start

ITR-1 filing is mostly pre-filled, but you still need source documents to verify the data on the portal:

• Form 130 (the new TDS certificate that replaced Form 16 from FY 2025-26) from your employer
• Form 16A from banks and others that deducted TDS on FD interest, dividends, or rent
• Form 26AS from incometax.gov.in (consolidated TDS statement)
• AIS and TIS from incometax.gov.in (Annual Information Statement, Taxpayer Information Summary)
• Bank account statements for the year (to verify interest credited and tally with AIS)
• Rent receipts and rent agreement if claiming HRA exemption under Section 10(13A)
• Home loan interest certificate if you want to claim Section 24(b) on a let-out or self-occupied property
• Section 80C / 80D / 80E / 80G investment proofs if filing under the old regime
• Aadhaar-PAN linked status check before logging in

The AIS vs Form 26AS vs TIS guide explains how to read each statement and reconcile mismatches before they trigger a notice.

Step-by-Step ITR-1 Filing Process

1. Log in to incometax.gov.in. Use your PAN as user ID. Confirm Aadhaar-PAN linkage if you have not filed before.
2. Go to e-File then Income Tax Returns then File Income Tax Return. Pick AY 2026-27 and ITR-1 (Sahaj).
3. Confirm pre-filled personal information. Name, PAN, Aadhaar, address, date of birth, contact details. Add a secondary email/phone if a tax professional files for you.
4. Choose your tax regime. New regime is the default. Old regime requires a positive opt-in and (for salaried) Form 10-IEA was required in earlier years; for AY 2026-27 the form-level toggle is enough for ITR-1 filers.
5. Verify Schedule S (Salary). Pre-filled from Form 130 data uploaded by your employer. Cross-check basic, HRA, perquisites, and standard deduction. Add any salary received from a previous employer if you switched jobs mid-year.
6. Fill Schedule HP (House Property). For each property, mark it self-occupied, let-out, or deemed let-out. Enter rent received, municipal taxes paid, and home loan interest under Section 24(b). Self-occupied home loan interest is capped at Rs 2 lakh; let-out has no cap (subject to overall house property loss set-off limit of Rs 2 lakh against other heads).
7. Fill Schedule OS (Other Sources). Interest from savings account, fixed deposits, recurring deposits, dividend income, family pension. Cross-check with AIS line by line.
8. Declare Section 112A LTCG if any. Enter sale value, cost, and net LTCG. Anything up to Rs 1.25 lakh stays in ITR-1; above that, the form will block submission and prompt you to switch to ITR-2.
9. Apply deductions in Schedule VI-A (old regime only). 80C up to Rs 1.5 lakh, 80D (health insurance), 80E (education loan interest, no cap), 80G (donations), 80TTA (savings interest up to Rs 10,000 for non-seniors), 80TTB (interest up to Rs 50,000 for senior citizens).
10. Tax computation. The portal computes tax under the chosen regime. Compare both regimes using the in-portal calculator before locking your choice for the year.
11. Tax paid section. TDS, advance tax, and self-assessment tax are pre-filled from Form 26AS. If a balance is payable, generate an e-Challan inside the portal and pay; if a refund is due, the figure is auto-computed.
12. Validate and submit. Run validation. Fix any flagged mismatches between AIS and what you entered. Submit.
13. E-verify within 30 days. Aadhaar OTP, net banking, EVC through bank, or DSC. An unverified return is treated as not filed and the deadline keeps running.

Common Deductions Worth Claiming on ITR-1

If you are filing under the old regime, these are the deductions most ITR-1 filers should check:

The HRA exemption guide walks through the three-formula calculation. If you have salary arrears from a back-dated pay revision, also check our Section 89(1) guide before filing, because Form 10E must be submitted before ITR-1.

Under the new regime, most deductions are unavailable. The only ones that survive are the standard deduction, employer NPS contribution under Section 80CCD(2), and a few others. Run both regimes through the portal calculator before deciding; for many salaried filers without home loan interest or large 80C savings, the new regime is now lower.

Common ITR-1 Errors to Avoid

• Filing ITR-1 with capital gains above Rs 1.25 lakh. Even Rs 1.26 lakh of Section 112A LTCG forces ITR-2. Any STCG, debt fund gains, property gains, or crypto gains forces ITR-2 or ITR-3.
• Missing the second house property change. If you previously filed ITR-2 only because you had a second property, check whether ITR-1 now fits.
• Ignoring AIS mismatches. AIS pre-fills interest, dividends, mutual fund redemptions, securities transactions, foreign remittances, and high-value purchases. Filing ITR-1 with figures that contradict AIS triggers a Section 143(1) intimation or a follow-up notice.
• Claiming HRA without rent receipts or PAN of landlord (above Rs 1 lakh annual rent). Rejected during processing.
• Missing Form 10E for salary arrears. If you received arrears or a back-dated increment, file Form 10E first, then claim Section 89(1) relief in ITR-1. Filing the relief without Form 10E means the relief is disallowed.
• Treating the July 31 date as an extension. It is the original date. Belated returns past July 31 carry a Section 234F fee and lose the ability to carry forward most losses.
• Skipping e-verification. The 30-day window starts from the date of submission. An unverified return is invalid.

When You Need Professional Help

ITR-1 is the simplest form, but the eligibility lines are unforgiving. The cost of filing ITR-1 when you should have filed ITR-2 is a Section 139(9) defective return notice and a forced revision under tight deadlines. Common cases where a quick eligibility review saves time: you sold an ESPP allotment, you received gift money above Rs 50,000 from a non-relative, you have an offshore brokerage account, or you switched jobs and your aggregate income crossed Rs 50 lakh.

Tax Garden's tax compliance services handle ITR-1 filing for salaried employees, pensioners, and small landlords. We verify eligibility against your AIS, Form 26AS, and Form 130 before locking the form, and we file Form 10E first if salary arrears are involved.

For the broader AY 2026-27 framework, see our ITR Filing Guide for AY 2026-27, the overview of all 7 ITR forms, the ITR-2 guide, the ITR-3 guide, and the ITR-4 Sugam guide. For slab-rate context, the income tax slab rates guide covers both regimes side by side.

Frequently Asked Questions

Who can file ITR-1 (Sahaj) for AY 2026-27?

Resident individuals with total income up to Rs 50 lakh from salary, pension, up to two house properties, other sources, Section 112A LTCG up to Rs 1.25 lakh, and agricultural income up to Rs 5,000. Directors, NRIs, HUFs, business income earners, foreign asset holders, and unlisted equity shareholders cannot use ITR-1.

What is the due date for ITR-1 for AY 2026-27?

July 31, 2026 for non-audit cases (which is all ITR-1 cases). Belated returns can be filed up to December 31, 2026 with a Section 234F late filing fee of Rs 1,000 (income up to Rs 5 lakh) or Rs 5,000 (above Rs 5 lakh). The August 31 extension that applies to ITR-3 and ITR-4 does not extend to ITR-1.

Can I file ITR-1 if I have two house properties for AY 2026-27?

Yes. From AY 2026-27, ITR-1 has been expanded to cover income from up to two house properties. Earlier, only one house property was allowed and a second property forced ITR-2. The standard treatment continues: only two properties can be treated as self-occupied under current law, and total house property loss set-off against other heads is capped at Rs 2 lakh.

Can I show capital gains in ITR-1?

Only long-term capital gains under Section 112A up to Rs 1.25 lakh in the year, which is the annual exemption threshold for listed equity shares and equity mutual funds. Any short-term capital gains, debt fund gains, property sale gains, crypto or VDA gains, or LTCG above Rs 1.25 lakh disqualifies ITR-1 and requires ITR-2.

Should I choose the new tax regime or the old regime in ITR-1?

The new regime is now the default. It is usually better for salaried filers without large 80C savings, home loan interest, or HRA exemption. The old regime is usually better if you claim Rs 1.5 lakh under 80C, Section 24(b) home loan interest, HRA, and 80D together. Run both through the portal calculator before locking; the choice can be revisited next year for salaried filers.

What if I received salary arrears or a back-dated increment?

File Form 10E on the income tax e-filing portal before filing ITR-1, then claim Section 89(1) relief in ITR-1. If you claim Section 89(1) relief in ITR-1 without first filing Form 10E, the relief is disallowed during processing and you receive a demand notice. The Form 10E is filed online under e-File then Income Tax Forms.

Sources

This guide is verified against the CBDT notification of ITR forms for AY 2026-27 (March 30, 2026), the official ITR-1 instructions on incometax.gov.in, the Income Tax Act 1961 (Sections 10(13A), 24, 80C, 80D, 80TTA, 80TTB, 112A, 234F, 234A), and the Finance Act 2026. Cross-checked against ClearTax, BajajFinserv, Tax2win, and Taxmann coverage as of April 2026. Always confirm current eligibility lines, Section 112A limits, and due dates against the official CBDT notification on incometax.gov.in before filing.