ITR-1 (Sahaj) for AY 2026-27: Who Can File, Last Date & New Changes Explained

If you're a salaried professional, a pensioner, or someone with a clean and straightforward income profile, ITR-1, officially called Sahaj, is most likely the form you need to file your taxes this year. It is the simplest income tax return form in India, designed specifically for individuals who don't have business income, complex capital gains, or foreign assets. The word "Sahaj" itself means easy and that's exactly what this form is meant to be.

For AY 2026-27 (FY 2025-26), the Income Tax Department has enabled both online filing and the Excel utility for ITR-1, which means you can start filing right away.

What is ITR-1 (Sahaj)?

ITR-1 is the income tax return form designated for resident individual taxpayers with simple, predictable income sources. It is the starting point for most salaried individuals when deciding which ITR form to file but whether you actually qualify depends on your specific income profile and a set of conditions laid down by the Income Tax Department.

The form covers income from salary or pension, up to two house properties, interest from savings or deposits, and a limited amount of long-term capital gains. It is not available for HUFs, non-residents, business owners, or anyone with complex financial arrangements.

Who Can File ITR-1?

ITR-1 is meant for resident individuals whose total income during FY 2025-26 does not exceed ₹50 lakh. Beyond the income cap, your income must come from one or more of the following sources:

1. Salary or pension: If your primary income comes from employment or a monthly pension, ITR-1 is the right starting point. Most TDS-paying salaried employees fall squarely in this category.
2. Up to 2 house properties: You can report income from one or two house properties whether self-occupied, rented, or deemed let out. This is a new change for AY 2026-27, earlier, only one house property was permitted in ITR-1.
3. Interest income: Earnings from savings accounts, fixed deposits, post office schemes, recurring deposits, or bonds are all reportable under ITR-1. This is one of the most common secondary income sources for salaried taxpayers.
4. LTCG under Section 112A up to ₹1.25 lakh: If you earned long-term capital gains from listed equity shares or equity-oriented mutual funds and the total does not exceed ₹1.25 lakh, with no brought-forward or carry-forward capital losses, you can now include it in ITR-1 itself. Previously, any capital gain required filing ITR-2.
5. Agricultural income up to ₹5,000: Small agricultural income within this limit is permitted under ITR-1 without requiring a separate disclosure.
6. Clubbed income: If your spouse's or minor child's income is clubbed with yours under tax rules, and it falls under the same permitted heads, ITR-1 still applies.

Who Cannot File ITR-1?

ITR-1 has clear boundaries. Filing it incorrectly, when you don't qualify, can result in a defective return notice under Section 139(9), requiring you to re-file with the correct form within 15 days. Here's who must look at other ITR forms:

• Total income above ₹50 lakh: Regardless of income source, crossing this threshold disqualifies you from ITR-1.
• Company directors: Holding a directorship in any company either active, dormant, or otherwise, makes you ineligible for ITR-1. Such individuals/directors need to file ITR 2.
• Holders of unlisted equity shares: If you held unlisted equity shares at any point during FY 2025-26, even for a short period, you cannot use ITR-1.
• Non-residents and RNORs: ITR-1 is strictly for resident individuals. NRIs and Resident but Not Ordinarily Resident (RNOR) taxpayers must file ITR-2.
• More than 2 house properties: If you own three or more properties, you need ITR-2. Two is the maximum allowed in ITR-1.
• Business or professional income: Any income from freelancing, consulting, trading, or running a business takes you out of ITR-1 territory. Depending on the nature, you'd need ITR-3 or ITR-4.
• Capital gains beyond the allowed limit: LTCG under Section 112A above ₹1.25 lakh, any short-term capital gains, or capital losses being carried forward all require ITR-2 or higher.
• Crypto and VDA income: Income from Virtual Digital Assets such as cryptocurrency, NFTs, or any other digital asset, cannot be reported in ITR-1.
• Foreign assets or accounts: If you hold foreign assets, have income from abroad, or have signing authority over a foreign bank account, ITR-1 does not apply.
• ESOP tax deferral from eligible startups: If you've opted to defer tax on ESOPs from a DPIIT-recognised startup, you must file ITR-2.
• TDS under Section 194N: If TDS was deducted on large cash withdrawals from your bank account during the year, ITR-1 cannot be used.
• Relief under Sections 90, 90A, or 91: These relate to double taxation avoidance agreements and bilateral/unilateral tax relief. If applicable, use ITR-2.

Note: HUFs cannot file ITR-1 under any circumstance. This form is exclusively for individual taxpayers.

Due Date to File ITR-1 for FY 2025-26 (AY 2026-27)

The due date to file ITR-1 for FY 2025-26 is 31 July 2026 for individuals who are not required to get their accounts audited. This is the standard deadline that applies to most salaried taxpayers.

If you miss this date, you can still file a belated return up to 31 December 2026, but it comes at a cost. 

You'll be liable for interest under Section 234A on any unpaid tax, and a late filing fee of up to ₹5,000 under Section 234F. For taxpayers with total income below ₹5 lakh, this fee is capped at ₹1,000.

Filing on time isn't just about avoiding penalties, it also preserves your ability to carry forward any losses, which a belated return does not allow.

What's New in ITR-1 for AY 2026-27?

This year's ITR-1 form comes with several meaningful updates that expand its scope and improve accuracy. Here's a breakdown of what's changed:

1. LTCG from Equity Now Reportable in ITR-1: Taxpayers with long-term capital gains from listed equity shares or equity mutual funds under Section 112A, capped at ₹1.25 lakh, with no carry-forward losses, can now file ITR-1. Earlier, even a small capital gain required switching to the more complex ITR-2. This is a significant relief for millions of small investors.
2. Two House Properties Now Permitted: ITR-1 previously allowed income from only one house property. From AY 2026-27, taxpayers with up to two house properties, whether self-occupied, rented, or both, can continue using ITR-1.
3. Aadhaar Enrolment ID No Longer Accepted: The 28-digit Aadhaar Enrolment ID has been removed from the form. Only a valid 12-digit Aadhaar number will be accepted during filing.
4. Deduction Sections Now Require Drop-Down Selection: Deductions under Sections 80C through 80U must now be chosen from a structured drop-down menu on the e-filing portal, with the specific clause or sub-section identified. This reduces errors and improves transparency in deduction claims.
5. New TDS Column in Schedule TDS: An additional column has been added under Schedule TDS to capture the specific section under which TDS was deducted, making reconciliation with Form 26AS and AIS more precise.
6. Section 89A Relief Fields Added: New fields have been introduced for income from retirement accounts maintained abroad, enabling better tracking of relief claims under Section 89A.

Documents Required to File ITR-1

The documents required to file ITR-1 are as follows: 

• Form 16: Issued by your employer, this is your primary salary and TDS summary
• Form 26AS: To verify all TDS deductions made against your PAN
• AIS (Annual Information Statement) and TIS (Taxpayer Information Summary): Available on the income tax portal, these reflect all financial transactions reported against your PAN
• PAN and Aadhaar: Both are mandatory for filing ITR-1 form
• Bank Account Details: Account number and IFSC of all accounts held during the year
• Interest Certificates: From banks, post offices, or NBFCs for FD or savings interest earned
• Proof of Deductions: Documents supporting claims under Section 80C (PPF, ELSS, LIC), Section 80D (health insurance premiums), HRA, or home loan interest certificates

Keeping these documents ready before you start not only speeds up the process but also reduces the chance of mismatches between what you declare and what the tax department already knows.

Structure of ITR-1 Form

Understanding the form's structure helps you fill it without confusion. ITR-1 is divided into the following parts:

How to File ITR-1 Online? Step by Step Process

Filing ITR-1 online on the Income Tax e-filing portal is straightforward once you have your documents ready. Follow these steps to file ITR-1 online:

1. Visit Income Tax Portal and log in using your credentials (PAN & Password), or register if you're a first-time user
2. Navigate to e-File → Income Tax Returns → File Income Tax Return
3. Select Assessment Year 2026-27 and choose Online as the mode of filing
4. Click Start New Filing, select your status, and choose ITR-1 as the form
5. Select the appropriate reason for filing and click Continue
6. Fill in the five sections of the form, Personal Information, Gross Total Income, Total Deductions, Tax Paid, and Total Tax Liability. Review auto-filled data carefully
7. Cross-check the tax computation summary against your Form 26AS and AIS
8. Rectify any errors and complete the validation process
9. Submit the return and e-verify using Aadhaar OTP to complete the filing

Your ITR is not considered filed until it is e-verified. If you skip this step, the return is treated as invalid.

ITR-1 vs ITR-2 vs ITR-4: Which One Is Right for You?

Choosing the wrong form is one of the most common filing mistakes. Here's a quick comparison to help you decide:

Conclusion

For most salaried professionals and pensioners, ITR-1 (Sahaj) remains the simplest and most appropriate form for FY 2025-26 and the new changes this year have made it even more inclusive. If your income is clean, your capital gains are within limits, and you don't hold directorship or foreign assets, filing ITR-1 before 31 July 2026 is the straightforward path.

But if there's any doubt about which form applies to your situation, especially if you're a startup employee with ESOPs, a co-founder drawing salary, or someone with multiple income streams, it's always better to get it right the first time than to deal with a defective return notice later.