ITR 1 Sahaj Filing Guide for AY 2026-27
Who should read this: Salaried employees, pensioners, and small landlords filing their own return; first-time filers; and tax professionals confirming AY 2026-27 eligibility lines.
Reading time: ~16 minutes · Last updated: 30 June 2026 · Applicable FY: 2025-26 · Applicable AY: 2026-27
Written by Hari Priya Kurada (Kondapur, Hyderabad). Reviewed by Tax Garden's tax experts. All figures are verified against the CBDT ITR notification for AY 2026-27 and the Income-tax Act, 1961. See Sources.
ITR 1 Sahaj is the most-filed income tax return in India. Salaried employees, pensioners, and small landlords with simple income profiles file it every year, often within an hour of logging into the e-filing portal. The form is short, mostly pre-filled, and deliberately narrow in scope. That last point is where filers slip: cross any eligibility line and you must move to ITR 2 or ITR 3.
What is ITR 1 (Sahaj)?
ITR 1, officially named Sahaj (Hindi for "simple"), is one of the seven income tax return forms notified by the Central Board of Direct Taxes (CBDT). It is meant for resident individuals whose income comes from a small set of straightforward sources and whose total income stays within a fixed ceiling.
Think of ITR 1 as the "salary slip plus a little interest" return. If your money story for the year is your pay, some bank interest, perhaps rent from a flat, and a small dividend, ITR 1 is built for you. The portal pre-fills almost the entire form from data your employer and bank already reported, so your real job is to verify, not type.
Why is ITR Filing Required?
Filing a return is not only about paying tax. It serves several purposes:
- Legal obligation (Section 139): If your gross total income exceeds the basic exemption limit, filing is mandatory. Filing is also compulsory in specified situations even below the limit, such as depositing over Rs 1 crore in a current account, spending over Rs 2 lakh on foreign travel, or paying electricity bills above Rs 1 lakh in the year.
- Government purpose: The return is how the Income Tax Department reconciles the tax already collected at source (TDS/TCS) and advance tax against your actual liability, and how it widens the formal tax base.
- Compliance and proof: A filed and verified return (ITR-V acknowledgement) is the standard income proof for loan approvals, visa applications, and tender documents.
- Benefits: You can only claim a refund of excess TDS, carry forward losses, and establish a clean compliance history by filing on time.
Who Should File ITR 1 for AY 2026-27?
You can file ITR 1 if all of the following apply.
- You are a resident individual (not NRI or RNOR).
- Your total income is up to Rs 50 lakh.
- Your income is from salary or pension, up to two house properties, other sources (interest, dividends, family pension), and agricultural income up to Rs 5,000.
- Any capital gain is only Section 112A LTCG up to Rs 1.25 lakh, with no capital loss to carry forward or set off.
- You are not a company director, do not hold unlisted equity shares, and have no foreign assets or foreign income.
If your salary slip, a couple of FD interest entries, and one or two properties are the whole picture, ITR 1 is your form.
Who Should NOT File ITR 1?
You must move to ITR 2, ITR 3, or ITR 4 if any of these apply. Real examples in brackets.
- Total income exceeds Rs 50 lakh. (You switched jobs and combined CTC crossed the limit.)
- Capital gains other than Section 112A LTCG up to Rs 1.25 lakh. (You sold a debt mutual fund, a house, gold, or crypto/VDA; you booked any short-term gain; or your 112A LTCG was Rs 1.30 lakh.) → ITR 2.
- Business or professional income. (You freelance, run a shop, or trade F&O.) → ITR 3 or ITR 4.
- Director in any company, listed or unlisted. → ITR 2/ITR 3.
- Holding unlisted equity shares at any time in the year. (You hold ESOPs of a private startup.) → ITR 2/ITR 3.
- Foreign assets, foreign income, or signing authority on a foreign account. (You hold US stocks via a foreign broker.) → ITR 2.
- NRI or RNOR residential status.
- HUF taxpayer. (HUFs cannot use ITR 1 at all.)
- More than two house properties.
- Agricultural income above Rs 5,000.
- Brought-forward losses to set off, or losses to carry forward, under any head.
- TDS under Section 194N (cash withdrawals above Rs 1 crore) or deferred ESOP tax under Section 17(2) for an eligible startup.
ITR 1 vs ITR 2 vs ITR 3 vs ITR 4: Which Form?
| Form | Who it is for |
|---|---|
| ITR 1 | Resident individuals, income up to Rs 50 lakh from salary/pension, up to two house properties, other sources, 112A LTCG up to Rs 1.25 lakh |
| ITR 2 | Individuals and HUFs without business income: capital gains, more than two properties, foreign assets, NRIs, directors, income above Rs 50 lakh |
| ITR 3 | Individuals and HUFs with business or professional income (including F&O and partners' remuneration) |
| ITR 4 | Resident individuals, HUFs and firms (not LLPs) with presumptive income under 44AD/44ADA/44AE, total income up to Rs 50 lakh |
For a full map of all seven forms, see Types of ITR forms in India.
What Changed in ITR 1 for AY 2026-27
1. Two house properties now allowed
ITR 1 historically allowed income from only one house property. From AY 2026-27 it covers up to two. A self-occupied home plus one let-out flat now stays in ITR 1 instead of escalating to ITR 2.
2. Section 112A LTCG up to Rs 1.25 lakh allowed
You can now report long-term capital gains from listed equity shares and equity mutual funds up to Rs 1.25 lakh (the annual exemption) inside ITR 1, provided you have no brought-forward or carried-forward capital losses. Cross Rs 1.25 lakh, and ITR 2 becomes mandatory.
3. New regime is default; Rs 12 lakh effectively tax-free
The new regime under Section 115BAC is the default. The Section 87A rebate was raised so that resident individuals with total income up to Rs 12 lakh pay zero tax (rebate up to Rs 60,000). With the Rs 75,000 standard deduction, a salaried filer earning up to Rs 12.75 lakh can have nil tax.
4. Filing deadline: July 31, 2026 (PASSED)
ITR 1 cases are non-audit by definition, so the due date was July 31, 2026. (The CBDT has, in some past years, extended dates by notification; always check the portal close to the deadline.) Belated returns run up to December 31, 2026 with a Section 234F fee. If you missed the deadline, you will owe Section 234F penalty and Section 234A interest (1% per month from August 1, 2026).
New Tax Regime Slabs (FY 2025-26)
Tax Rate Chart
New Regime Income Tax Slabs : FY 2025-26 (AY 2026-27)
Default regime under Section 115BAC. Rebate u/s 87A makes income up to Rs 12 lakh tax-free.
Up to Rs 4 lakh
Basic exemption
Rs 4 to 8 lakh
Rs 8 to 12 lakh
Rebate covers tax up to Rs 12L
Rs 12 to 16 lakh
Rs 16 to 20 lakh
Rs 20 to 24 lakh
Above Rs 24 lakh
Source: Finance Act 2025, Section 115BAC : incometax.gov.in/iec/foportal/
Compare both regimes in our old vs new regime guide and the slab rates guide.
Required Documents
ITR 1 is mostly pre-filled, but you still need source documents to verify the data before submitting.
- Form 16 from your employer (or pension certificate)
- Form 26AS, AIS and TIS downloaded from the portal
- Bank interest certificates for savings, FD and RD accounts
- Rent received details and home loan interest certificate (for Schedule HP)
- Capital gains statement if you have Section 112A LTCG
- Proofs for old regime deductions (80C, 80D, rent receipts for HRA)
The AIS vs Form 26AS vs TIS guide explains how to reconcile these before they trigger a notice. For FY 2025-26 (AY 2026-27) your employer still issues Form 16 (by 15 June 2026); from FY 2026-27 it is renamed Form 130 under the Income-tax Act 2025. See how to read Form 16 and file and Form 130 explained.
Step-by-Step ITR 1 Filing Process
Detailed walkthrough:
- Log in to incometax.gov.in/iec/foportal/ using your PAN. Confirm Aadhaar-PAN linkage.
- Go to e-File → Income Tax Returns → File Income Tax Return. Pick AY 2026-27 and ITR 1 (Sahaj).
- Confirm pre-filled personal information: name, PAN, Aadhaar, address, date of birth, contact, and pre-validated bank account for refund.
- Choose your tax regime. New regime is default; old regime needs an opt-in.
- Verify Schedule S (Salary) against Form 16.
- Fill Schedule HP (House Property). Under the old regime, self-occupied interest is capped at Rs 2 lakh and house-property loss set-off against other heads is capped at Rs 2 lakh. Under the new regime, there is no interest deduction for a self-occupied home and no set-off of house-property loss against other heads.
- Fill Schedule OS (Other Sources): savings/FD/RD interest, dividends, family pension. Tally with AIS line by line.
- Declare Section 112A LTCG if any (up to Rs 1.25 lakh).
- Apply Schedule VI-A deductions (old regime only).
- Review tax computation under the chosen regime; compare both using the calculator.
- Check the tax-paid section (TDS, advance tax, self-assessment) against Form 26AS and pay any balance via e-challan.
- Validate and submit. Fix any AIS mismatch the validator flags.
- E-verify within 30 days. See all e-verification methods. After verification, the ITR-V acknowledgement is generated; track your refund status online.
Common Deductions Worth Claiming (Old Regime)
- Section 80C: up to Rs 1,50,000 (EPF, PPF, ELSS, life insurance, home loan principal, tuition fees)
- Section 80D: health insurance up to Rs 25,000 (Rs 50,000 for senior citizens), plus parents
- Section 80CCD(1B): additional Rs 50,000 for own NPS contribution
- Section 80TTA / 80TTB: savings interest up to Rs 10,000, or deposit interest up to Rs 50,000 for senior citizens
- HRA (Section 10(13A)) and home loan interest (Section 24(b)) up to Rs 2 lakh for a self-occupied home
Deep dives: Section 80C list, standard deduction Rs 75,000, HRA calculation, home loan tax benefits, and NPS Section 80CCD. Under the new regime, only the standard deduction and employer NPS (80CCD(2)) survive; run both regimes through the calculator first.
Worked Examples
1. Salaried employee (new regime). Priya earns Rs 11.5 lakh salary. After Rs 75,000 standard deduction, taxable income is Rs 10.75 lakh. Tax computed on slabs is below the rebate threshold, so the Section 87A rebate makes her tax nil. She files ITR 1, no balance payable.
2. Pensioner with FD interest. Rao receives Rs 6 lakh pension and Rs 90,000 FD interest. After the Rs 75,000 standard deduction, total income is Rs 6.15 lakh, well under Rs 12 lakh, so tax is nil after the 87A rebate. As a senior citizen he claims 80TTB up to Rs 50,000 if he opts for the old regime. ITR 1 applies.
3. Small landlord (two properties). Meera has Rs 9 lakh salary, a self-occupied home, and one let-out flat with Rs 2.4 lakh annual rent. Because two house properties are now allowed, she stays in ITR 1, declares rent in Schedule HP, and claims the 30% standard deduction on the let-out flat's annual value plus home-loan interest u/s 24(b) on it (interest on the self-occupied home is allowed only under the old regime).
4. Equity investor under the LTCG cap. Arjun has Rs 8 lakh salary and Rs 1.1 lakh LTCG from equity mutual funds (Section 112A). Since the gain is below Rs 1.25 lakh and he has no carry-forward loss, he files ITR 1. Had the gain been Rs 1.3 lakh, he would file ITR 2.
5. When ITR 1 does NOT apply (freelancer). Sana earns Rs 14 lakh from freelance design. This is professional income, so ITR 1 is barred; she files ITR 4 under presumptive Section 44ADA (or ITR 3 with books).
6. When ITR 1 does NOT apply (NRI). Kabir is an NRI with Indian rental income. NRIs cannot use ITR 1; he files ITR 2.
Common Mistakes
- Filing ITR 1 with capital gains above Rs 1.25 lakh or any STCG / property / crypto gain. Even Rs 1.26 lakh of 112A LTCG forces ITR 2.
- Missing the two-house-property change and needlessly filing ITR 2.
- Ignoring AIS / TDS mismatches. Figures that contradict AIS or Form 26AS trigger a Section 143(1) intimation. Claim TDS strictly from Form 26AS, not AIS.
- Wrong PAN/bank details. A non-validated or wrong bank account delays the refund.
- Choosing the wrong regime without running the calculator.
- Claiming HRA without rent receipts or without the landlord's PAN (annual rent above Rs 1 lakh).
- Missing Form 10E for salary arrears. File Form 10E before claiming Section 89(1) relief, or it is disallowed.
- Skipping e-verification. An unverified return is treated as not filed; verifying after 30 days makes the verification date the filing date.
Common Notices and How to Respond
- Section 143(1) intimation: CPC's computation differs from yours. Compare line by line; pay, or file rectification under Section 154 if the CPC erred.
- Section 143(1)(a) proposed adjustment: respond online within 30 days, agreeing or disagreeing.
- Section 139(9) defective return: usually wrong form or missing data; correct within 15 days.
The best protection is reconciling AIS, TIS, and Form 26AS before filing. See common ITR mistakes that cause notices.
Penalties for Late or Wrong Filing
- Section 234F late fee: Rs 1,000 if total income is up to Rs 5 lakh; Rs 5,000 otherwise, for filing after July 31, 2026.
- Section 234A interest: 1% per month on unpaid tax from the due date until filing.
- Sections 234B/234C: Interest for shortfall/deferment of advance tax (see advance tax due dates).
- Belated return (Section 139(4)): Allowed until 31 December 2026, but you lose the right to carry forward most losses.
- Updated return (Section 139(8A), ITR-U): Available later with additional tax; see the ITR-U guide.
Filing on time and reconciling data first is the simplest way to reduce exposure to penalties. See the belated, revised, and updated return guide.
Latest Changes (CBDT / Finance Act)
- CBDT ITR notification, AY 2026-27: ITR 1 expanded to two house properties and Section 112A LTCG up to Rs 1.25 lakh. See new ITR forms key changes.
- Finance Act 2025: New-regime slabs revised and Section 87A rebate raised so income up to Rs 12 lakh is tax-free.
- Form 16 remains the salary TDS certificate for FY 2025-26 (AY 2026-27); it is renamed Form 130 from FY 2026-27 under the Income-tax Act 2025.
- Standard deduction Rs 75,000 under the new regime continues.
Always confirm the current position against the CBDT notification on the portal before filing.
Need Help Filing ITR 1?
ITR 1 is the simplest form, but the eligibility lines are unforgiving, and filing the wrong form means a defective-return notice and a rushed revision. If you sold an ESPP allotment, received a gift above Rs 50,000 from a non-relative, hold an offshore brokerage account, or switched jobs and crossed Rs 50 lakh, a quick eligibility check saves trouble.
Tax Garden (4th Floor, CWS One, Kondapur, Hyderabad, 500084, Telangana) files ITR 1 for salaried employees, pensioners, and small landlords across Hyderabad and India. We verify eligibility against your AIS, Form 26AS, and Form 16 before locking the form, file Form 10E first when arrears are involved, and assist with belated returns if you missed the July 31 deadline. See our tax compliance services and pricing.
Related Guides
- ITR Filing Guide for AY 2026-27
- Types of ITR forms in India
- ITR 2 guide · ITR 3 guide · ITR 4 Sugam guide
- AIS vs Form 26AS vs TIS
- Income from house property (Schedule HP)
- How to e-verify your ITR
- Check refund status online
Frequently Asked Questions
Can I still file ITR 1 for AY 2026-27 after 31 July 2026?
Yes. You can file a belated ITR 1 under Section 139(4) up to 31 December 2026. You will pay the Section 234F late fee of Rs 5,000, or Rs 1,000 if total income is up to Rs 5 lakh, plus 1% per month interest under Section 234A on any unpaid tax from 1 August 2026.
Can I file ITR 1 if I sold equity mutual funds during the year?
Only if the gain is long-term capital gain under Section 112A of up to Rs 1.25 lakh and you have no capital losses to carry forward or set off. Any short-term capital gain, 112A LTCG above Rs 1.25 lakh, or gain from debt funds, property, gold or crypto means you must file ITR 2 instead.
Is there a penalty for filing ITR 1 when I should have filed ITR 2?
A return filed in the wrong form can be treated as defective under Section 139(9). The department issues a notice and you must correct it by filing in the right form within the time given, usually 15 days. If you do not respond, the return can be treated as invalid, as if it was never filed.
Do I need to file ITR 1 if my income is below Rs 12 lakh and my tax is nil?
Filing is mandatory if your gross total income before deductions exceeds the basic exemption limit, which is Rs 4 lakh under the new regime, even if the 87A rebate brings tax to nil. It is also required if you want a refund of TDS, or if you meet specified conditions such as foreign travel above Rs 2 lakh.
Should I claim TDS from AIS or Form 26AS in ITR 1?
Claim TDS credit as it appears in Form 26AS, because that is what the processing system uses to allow credit. Use AIS to check that all income, such as savings interest, FD interest and dividends, is reported. If AIS shows income you did not earn, submit feedback on AIS before filing.
Can a senior citizen with only pension and FD interest use ITR 1?
Yes, a resident senior citizen with pension, bank interest and family pension within the Rs 50 lakh total income limit can use ITR 1. Under the old regime they can claim up to Rs 50,000 under Section 80TTB on bank and post office interest. Senior citizens aged 75 or above with only pension and interest from the same bank may not need to file at all if they submit Form 12BBA.
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Sources
This guide is verified against the CBDT notification of ITR forms for AY 2026-27, the official ITR 1 instructions and e-filing FAQs on the Income Tax Department portal (incometax.gov.in/iec/foportal/), the Income-tax Act, 1961 (Sections 10(13A), 24, 80C, 80D, 80TTA, 80TTB, 87A, 112A, 115BAC, 139, 143, 234A, 234F), and the Finance Act 2025. Confirm the current eligibility lines, Section 112A limit, slab rates, and due dates against the official CBDT notification on incometax.gov.in/iec/foportal/ before filing.
