Hot Topics
India Growth Downgrades and RBI
  Indian Growth Downgrades and RBI
Public Sector Banks Performance
 PERFORMANCE  OF PUBLIC SECTOR BANKS IN FY 2025-26
Income Tax for High-Income Salaried Persons
 INCOME TAX  FOR HIGH-END SALARIED PERSONS
Income Tax Audits
 Income Tax Audits for Businesses and Professionals
File ITR in June
 Why One Should Wait for June to Submit  IT Returns

Comprehensive Guide to ITR-1

ITR-1 AY 2026-27

ITR-1 AY 2026-27, ITR-1 allows income from up to 2 house properties (not just one), plus LTCG u/s 112A up to ₹1.25 lakh

 for Financial Year 2025-26

Comprehensive guide to ITR-1

 for Financial Year 2025-26 (Assessment Year 2026-27) 

You can file ITR1 online in E-Filing website now . But it’s better for you to wait up to th middle of June 2026 . To know why you can wait   for submitting IT Returns up to 15th , June 2026 , CLICK HERE . 

Eligibility: Who Can File ITR-1?

ITR-1 is designed for resident individuals with straightforward income sources. However, not everyone qualifies for this “simple” form.

You ARE Eligible if:

  • You are a Resident individual (Non-Residents or RNORs cannot use this form).
  • Your total income for the financial year does not exceed ₹50 Lakhs.
  • Your income comes from:
    • Salary or Pension.
    • One House Property (excluding cases where loss is brought forward from previous years).
    • Other Sources (Interest from banks, family pension, dividends, etc.).
    • Agricultural Income up to ₹5,000.
    • LTCG under Section 112A up to ₹1.25 Lakhs (specifically for AY 2026-27 updates).

You are NOT Eligible if:

  • You are a Director in a company or hold unlisted equity shares.
  • You have income from Business or Profession.
  • You own more than one house property.
  • You have Capital Gains (Short-term or Long-term exceeding the specified limit).
  • You have foreign assets or income from sources outside India.
  • Your total income exceeds ₹50 Lakhs.
  • You have brought forward losses or losses to be carried forward.

Essential Documents Checklist

Before you log in to the portal, ensure you have these documents handy to match the pre-filled data:

  • Form 16: Issued by your employer, detailing your total salary and TDS deducted.
  • Form 26AS & AIS/TIS: Your consolidated tax statements available on the e-filing portal. These are crucial to verify that the tax deducted from your salary and interest matches the government records.
  • Bank Statements/Passbooks: To calculate interest earned on savings accounts and fixed deposits.
  • Investment Proofs: If you are under the Old Tax Regime, keep receipts for 80C (PPF, LIC, ELSS), 80D (Health Insurance), and Home Loan interest certificates.
  • Aadhaar & PAN: Ensure they are linked to avoid rejection

General Guidelines for Online Filing

The Income Tax Department has made the process largely automated with pre-filled forms. Follow these steps:

  1. Log In: Visit the Income Tax e-Filing Portal and log in using your PAN.
  2. Select AY & Mode: Choose Assessment Year 2026-27 and select ‘Online’ as the filing mode.
  3. Choose the Regime: Decide between the New Tax Regime (default) or the Old Tax Regime. Note: The New Regime offers lower rates but fewer deductions.
  4. Verify Pre-filled Data: Check your Personal Info, Gross Total Income, and Tax Paid sections. Cross-verify these with your Form 16 and AIS.
  5. Claim Deductions: Ensure all eligible deductions (like 80C or 80TTA) are reflected.
  6. E-Verification: Your filing is not complete until it is verified. The easiest way is using Aadhaar OTP. Do this within 30 days of filing to ensure your return is processed.

STEP BY STEP GUIDELINES FOR SUBMITTING ITR1 ON-LINE

Phase 1: Initiation

  1. Dashboard Access: Once logged in, navigate to e-File > Income Tax Returns > File Income Tax Return.
  2. Select Details:
    • Assessment Year (AY): Select 2026-27.
    • Mode of Filing: Select Online.
    • Filing Type: Select 139(1) – Original Return.
  3. Define Status: Select Individual as your filing status (as ITR-1 is specifically for individuals).
  4. Form Selection: Choose ITR-1 (Sahaj) from the dropdown and click “Proceed with ITR-1”.
  5. Reason for Filing: Choose the applicable reason (e.g., “Taxable income is more than basic exemption limit”).

Phase 2: Validating the Five Main Sections

ITR-1 is divided into five pre-filled sections that must be confirmed sequentially.

1. Personal Information

  • Verify pre-filled details like Name, PAN, and Address.
  • New for AY 26-27: You may need to provide a secondary address and secondary contact details.
  • Tax Regime: The New Tax Regime is the default. If you want to use the Old Tax Regime to claim deductions like 80C or HRA, you must explicitly select “Yes” to opt out of the New Regime in this section.

2. Gross Total Income

  • Review pre-filled salary details from your Form 16.
  • Major Update: ITR-1 now allows income from up to two house properties.
  • Confirm income from “Other Sources” like bank interest and dividends.
  • Ensure any LTCG under Section 112A (up to ₹1.25 Lakhs) is correctly reflected.

3. Total Deductions

  • If using the Old Tax Regime, verify your deductions under Chapter VI-A (80C, 80D, 80TTA, etc.).
  • If staying in the New Tax Regime, most deductions will be disabled, except for specific ones like 80CCD(2) (Employer’s contribution to NPS).

4. Tax Paid

  • Cross-check the pre-filled TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) against your Form 26AS and AIS.
  • Add any Advance Tax or Self-Assessment Tax you have already paid.

5. Total Tax Liability

  • The system will automatically calculate your final tax liability or refund based on the previous sections.
  • Review this summary carefully. If tax is due, use the “Pay Now” option to clear it before submitting.

Phase 3: Final Submission & Verification

  1. Preview Return: Click “Preview Return” to see the completed form. Ensure your bank account for refund is selected and pre-validated.
  2. Proceed to Validation: The portal will check for errors. If “Validation Successful” appears, click “Proceed to Verification”.
  3. e-Verify (Crucial Step): Your return is not considered “filed” until it is verified.
    • Select e-Verify Now for the fastest processing.
    • Use Aadhaar OTP, Net Banking, or EVC via bank account.
    • Deadline: You must verify your return within 30 days of submission.

Deadlines to Remember

  • Original Due Date: July 31, 2026.
  • Late Fee: Filing after July 31st attracts a penalty of up to ₹5,000 (under Section 234F).

Special Note  ; Always download your Annual Information Statement (AIS) first. The tax department knows about that “hidden” FD interest or dividend—it’s better to declare it upfront than to receive a notice later!

WARNING on STCG  :  

 If  you have  LTCG under Section 112A up to ₹1.25 Lakhs (specifically for AY 2026-27 updates).you can submit ITR1  . But if you have Short-Term Capital Gains (STCG) from the stock market, you are not eligible to file ITR-1 . Any amount of STCG—even ₹100—automatically disqualifies you from ITR-1

Why you cannot file ITR-1 with STCG:

  • Form Limitation: ITR-1 (Sahaj) is designed for “simple” income sources. STCG requires a detailed breakdown of purchase and sale dates, which is only available in the more comprehensive Schedule CG found in ITR-2 or ITR-3.
  • The Specific Exception: For the current assessment year, you can only use ITR-1 if your capital gains are exclusively LTCG under Section 112A (from listed shares/equity mutual funds) and do not exceed ₹1.25 Lakhs.

“Note on AI Usage: This post was written with the assistance of AI tools for research, drafting, and image generation. All content has been human-reviewed and edited for accuracy and tone to ensure it meets our quality standards.”

ITR-1 (Sahaj) AY 2026-27 official PDF

For more Information Contact us