Who Can File ITR-1 for AY 2026-27?
The Income Tax Department says ITR-1 is applicable to a resident individual (other than not ordinarily resident) with total income up to ₹50 lakh from qualifying sources such as salary/pension, one house property and other sources, subject to the form's conditions.
Who Cannot Use ITR-1?
- Total income exceeds ₹50 lakh, subject to the stated exceptions.
- You are a company director.
- You have short-term capital gains.
- Your section 112A long-term capital gain exceeds the permitted limit for ITR-1.
- You held unlisted equity shares during the relevant year.
- You have foreign assets, foreign financial interests or foreign-source income.
- You have certain deferred ESOP tax, brought-forward loss or other excluded situations.
Documents and Information
Keep Form 16, AIS, Form 26AS, bank interest details, deduction information and bank account details ready. Most supporting documents are not uploaded with a normal ITR, but you should retain them.
New Tax Regime Default
For AY 2026-27, the Income Tax Department's ITR-1 manual says the new tax regime is the default. Eligible taxpayers wishing to use the old regime need to select the applicable option while filing.
Who Is ITR-1 (Sahaj) Designed For?
ITR-1 is a simplified return for eligible individual taxpayers whose income and circumstances fit the form’s conditions. Eligibility is based on the nature of income and other facts, not merely on whether the taxpayer is salaried.
Typical Income Covered by ITR-1
For an eligible taxpayer, ITR-1 can cover specified salary or pension income, one house property and other permitted sources such as interest, subject to the income and eligibility limits in force for the assessment year. The exact eligibility rules should be checked before selecting the form.
When ITR-1 May Not Be Appropriate
ITR-1 is not a universal return. Situations involving certain capital gains, foreign assets or income, business or professional income, directorship in a company, unlisted equity shares and other specified conditions can require a different form. For example, the Income Tax Department’s current ITR-2 guidance states that ITR-2 is available where total income exceeds ₹50 lakh and in specified cases such as being a company director or holding unlisted equity shares, provided the taxpayer otherwise fits ITR-2 conditions.
ITR-1 and the New Tax Regime
Choosing ITR-1 does not automatically mean choosing the old or new tax regime. Tax regime selection and ITR form selection are separate questions. First determine the correct form, then apply the regime rules that are relevant to your case.
Documents to Keep Ready for ITR-1
- PAN and Aadhaar details
- Form 16 and salary information
- Bank account and interest details
- Form 26AS, AIS and TIS
- Eligible deduction records when using the old regime
- House-property information if applicable
Simple ITR-1 Filing Workflow
- Log in to the Income Tax e-filing portal.
- Start the applicable return for AY 2026-27.
- Confirm personal and bank details.
- Review pre-filled income and tax information.
- Enter or correct salary, house-property and other eligible income.
- Choose the applicable tax regime and enter eligible claims.
- Review tax payable or refund.
- Submit and complete e-verification.
Do Not Force Your Income Into ITR-1
The simplified form is useful only when you are actually eligible. Filing the wrong return merely because it is shorter can create a mismatch later. If your income includes a type that takes you outside ITR-1, select the appropriate form instead.
FAQs
ITR-1 Eligibility Checklist
Why ITR-1 Is Often Chosen Incorrectly
Being a salaried employee does not automatically make ITR-1 correct. The form depends on all sources of income and specific exclusions. Capital gains, foreign assets, directorship, unlisted shares and other conditions can change the correct return.