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)
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
Deadline for Filing ITR-1
Mark your calendar! Missing the deadline leads to late fees under Section 234F.
- Due Date: July 31, 2026 (unless extended by the CBDT).
- Belated Return: If you miss the July deadline, you can file a belated return until December 31, 2026, but a penalty of up to ₹5,000 (or ₹1,000 if income is below ₹5 Lakhs) will apply.
General Guidelines for Online Filing
The Income Tax Department has made the process largely automated with pre-filled forms. Follow these steps:
- Log In: Visit the Income Tax e-Filing Portal and log in using your PAN.
- Select AY & Mode: Choose Assessment Year 2026-27 and select ‘Online’ as the filing mode.
- 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.
- Verify Pre-filled Data: Check your Personal Info, Gross Total Income, and Tax Paid sections. Cross-verify these with your Form 16 and AIS.
- Claim Deductions: Ensure all eligible deductions (like 80C or 80TTA) are reflected.
- 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.
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.
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ITR-1 (Sahaj) AY 2026-27 official PDF
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