ITR-1 (Sahaj) for AY 2026-27: Eligibility, New Rules & How to File Online

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ITR-1 (Sahaj) is India’s simplest income tax return form – and for FY 2025-26 (AY 2026-27) it just became useful to even more taxpayers. This guide covers who can file ITR-1, what changed this year, the documents you need, and a step-by-step walkthrough of filing it online before the 31 July 2026 deadline.

ITR-1 Sahaj filing guide FY 2025-26 AY 2026-27 eligibility and steps

Watch: ITR-1 (Sahaj) Explained in 2 Minutes

Watch: File ITR-1 in 5 Minutes – Step by Step

Quick answer: You can use ITR-1 for AY 2026-27 if you are a resident individual with income up to Rs 50 lakh from salary/pension, up to two house properties (new this year), other sources, and listed-equity LTCG up to Rs 1.25 lakh. Due date: 31 July 2026. Under the default new regime, salaried income up to Rs 12.75 lakh is effectively tax-free – but you still must file to stay compliant and claim your TDS refund.

What’s new in ITR-1 for AY 2026-27

New changes in ITR-1 for AY 2026-27 - two house properties LTCG Aadhaar dropdown deductions
  • Two house properties allowed – the biggest change. Until last year, owning a second house forced you into ITR-2. From AY 2026-27, ITR-1 accepts income from up to two house properties (as long as there is no brought-forward or carry-forward house property loss).
  • Small equity LTCG stays in ITR-1 – long-term capital gains under Section 112A (listed shares, equity mutual funds) up to Rs 1.25 lakh can be reported in ITR-1 itself, with no losses to carry forward. Gains above that, or any other capital gains, still need ITR-2 – see our capital gains tax guide.
  • Only 12-digit Aadhaar accepted – the 28-digit Aadhaar enrolment ID no longer works in the form.
  • Deductions picked from dropdowns – Sections 80C to 80U must be selected from menus with the exact clause, so keep your proofs organised.
  • New fields for Section 89A relief on foreign retirement accounts.

Who can use ITR-1 (Sahaj) for FY 2025-26?

Who can and cannot use ITR-1 Sahaj for AY 2026-27 eligibility chart

You are eligible if ALL of these apply:

  • Resident individual (NRIs and RNORs cannot use ITR-1 – see our NRI tax filing guide)
  • Total income up to Rs 50 lakh
  • Income from salary or pension
  • Income from up to two house properties
  • Other sources – bank/FD interest, dividends, family pension
  • LTCG under Section 112A up to Rs 1.25 lakh
  • Agricultural income up to Rs 5,000

Who cannot use ITR-1?

  • Income above Rs 50 lakh – use ITR-2
  • Three or more house properties, or house property losses carried forward
  • Any capital gains beyond the small 112A window – including crypto/VDA income, which never fits in ITR-1
  • Business, professional, F&O or intraday income – that is ITR-3 territory (see our F&O guide), or ITR-4 under presumptive taxation
  • Directors of companies or holders of unlisted equity shares
  • Foreign assets or foreign income

Documents you need before filing ITR-1

  • Form 16 from your employer (both employers if you switched jobs)
  • PAN and 12-digit Aadhaar (linked)
  • Form 26AS and AIS from the portal – cross-check every TDS entry (our Form 26AS guide shows how)
  • Bank account details (pre-validated for refund) and interest certificates
  • Home loan interest certificate, rent receipts for HRA, and investment proofs (80C, 80D) if opting for the old regime
  • Broker statement if you have small 112A LTCG

Step-by-step: filing ITR-1 online for AY 2026-27

  1. Log in at incometax.gov.in with PAN. Go to e-File – Income Tax Returns – File Income Tax Return.
  2. Select AY 2026-27, Online mode, and ITR-1 (Sahaj).
  3. In Personal Information, verify your details and choose your tax regime – the new regime is default; tick old regime only if your deductions justify it (compare below).
  4. Check the pre-filled salary data against Form 16 – especially if you changed jobs mid-year (both salaries must appear; duplicate standard deduction is a common portal error).
  5. Enter house property income – now up to two properties: self-occupied (nil/negative with home-loan interest under Section 24b in the old regime) or let-out (30% standard deduction applies automatically). More detail in our rental income guide.
  6. Verify interest and dividend income against AIS – the portal pre-fills it; add anything missing (a mismatch here is the top notice trigger for salaried filers).
  7. Report small 112A LTCG if any, and claim deductions from the new dropdown menus (old regime) – 80C, 80D, 80TTA and so on, with exact clauses.
  8. Review the computation – confirm the Section 87A rebate has applied if your taxable income is within Rs 12 lakh (new regime). Details in our 87A rebate guide.
  9. Pay any balance tax via Challan 280, then submit.
  10. e-Verify within 30 days – Aadhaar OTP is fastest; all methods in our e-verification guide. Then track your refund.

New regime vs old regime in ITR-1

  • New regime (default): Rs 75,000 standard deduction + Section 87A rebate = zero tax up to Rs 12.75 lakh for salaried taxpayers. No investment proofs needed. See the full income tax slabs FY 2025-26.
  • Old regime: worth it only when your combined deductions – 80C, 80D, HRA, home-loan interest – are large enough to beat the new-regime numbers. Salaried filers can switch regimes every year in ITR-1.

Common ITR-1 mistakes that trigger notices

  • Skipping savings/FD interest because TDS was cut or the amount feels small – it is all in your AIS.
  • Using ITR-1 when ineligible – crypto gains, big capital gains, F&O income, NRI status or a third property make the return defective under Section 139(9).
  • Two Form 16s, one salary reported – job switchers must add both employers.
  • Not e-verifying within 30 days – the return is treated as never filed.
  • Wrong or non-validated bank account – your refund simply will not arrive.
  • Missing 31 July – late fee up to Rs 5,000 under 234F plus interest; see late filing penalties. Belated returns are allowed until 31 December 2026, and ITR-U can fix things later – at a rising cost.

Frequently asked questions – ITR-1

I am a pensioner. Can I use ITR-1?

Yes – pension is taxed as salary, and the Rs 75,000 standard deduction (new regime) applies. Family pension recipients report it under other sources in ITR-1 too.

My income is below the exemption limit. Should I still file?

File anyway if TDS was deducted (refund), if you need proof of income for visas or loans, or if any high-value transactions appear in your AIS.

I changed jobs during FY 2025-26. Which form?

Still ITR-1 – just report both employers’ salaries. Expect a small balance tax if both applied the exemption limit separately.

I sold shares this year. Can I still use ITR-1?

Only if your gains are long-term under Section 112A and total Rs 1.25 lakh or less, with no losses to carry forward. Any short-term gains, or larger LTCG, mean ITR-2.

I have crypto income. ITR-1?

No. Virtual digital asset income always requires ITR-2 (or ITR-3 if traded as business), taxed at a flat 30% under Section 115BBH.

Can I claim HRA and home loan together in ITR-1?

Yes, in the old regime, if you genuinely pay rent in one city while owning a house elsewhere (or your house is under construction). Keep documentation strong – this combination is scrutinised.

Is agricultural income allowed in ITR-1?

Only up to Rs 5,000. Above that, use ITR-2.

What if I make a mistake after filing?

File a revised return up to 31 March 2027 (Budget 2026 extended this from 31 December) – no penalty for genuine corrections.

File your ITR-1 with CA assistance

Send us your Form 16 and we handle the rest – regime comparison, AIS reconciliation, filing and e-verification within 24 hours. Upload your documents or contact CA Rahul Gupta’s team.

Related guides

Disclaimer: This guide reflects the ITR-1 requirements for FY 2025-26 (AY 2026-27) under the Income-tax Act, 1961, as understood in July 2026. Rules and utilities change – consult a qualified Chartered Accountant for advice on your specific case.