Who Can File ITR-1 for AY 2026-27? Eligibility Guide

Filing your Income Tax Return becomes much easier when you choose the correct ITR form. For most salaried individuals in India, ITR-1 Sahaj remains the simplest return form. However, many taxpayers still ask: “Who can file ITR1 in AY 26-27?” and “Who is not eligible to file ITR-1 in India?”

For Assessment Year (AY) 2026-27 relating to Financial Year (FY) 2025-26, the Income Tax Department has prescribed clear ITR-1 eligibility criteria. Choosing the wrong form can lead to defective return notices under Section 139(9) of the Income Tax Act. This guide explains who can file ITR-1 for AY 2026-27, income limits, exclusions, latest changes, required documents, and step-by-step filing instructions.

What Is ITR-1 Sahaj?

ITR-1, also called Sahaj, is a simplified income tax return form meant for resident individuals earning basic income from salary, pension, one house property, and other sources.

The form is notified every year by the Central Board of Direct Taxes (CBDT). You can access official forms and instructions on the Income Tax Department portal.

Who Can File ITR1 in AY 26-27?

A resident individual can file ITR-1 for AY 2026-27 if all the following conditions are satisfied:

• Total income does not exceed ₹50 lakh
• The taxpayer is a Resident Individual
• Income includes:
  • Salary or pension
  • Income from one house property
  • Income from other sources such as savings interest or FD interest
  • Agricultural income up to ₹5,000
• Clubbed income of spouse or minor child falls within eligible income categories
• Long-term capital gains under Section 112A up to specified limits, where permitted in updated filing utilities

Income Limit for ITR-1 Filing AY 2026-27

The maximum total income allowed under ITR-1 eligibility criteria AY 2026-27 is ₹50 lakh.

If your gross total income exceeds ₹50 lakh even by ₹1, you cannot use ITR-1 and must shift to ITR-2 or another applicable form.

Can Salaried Employees File ITR-1 AY 2026-27?

Yes. Salaried employees are the primary category eligible for ITR-1 Sahaj filing rules FY 2025-26.

You can use ITR-1 if you have:

• Salary from one or multiple employers
• Pension income
• Interest income from:
  • Savings accounts
  • Fixed deposits
  • Post office deposits
• One self-occupied or let-out house property

Example:

Rahul earns:

• Salary: ₹18 lakh
• Savings account interest: ₹22,000
• One self-occupied flat

Total income is below ₹50 lakh, and there are no capital gains or business income. Rahul can file ITR-1 for AY 2026-27.

ITR-1 Eligibility Criteria AY 2026-27

Residential Status Requirement

Only Resident Individuals can use ITR-1.

The following cannot use ITR-1:

• Non-Residents (NRIs)
• Resident but Not Ordinarily Resident (RNOR)

Residential status is determined under Section 6 of the Income Tax Act.

You can verify residency provisions from the official Income Tax India website.

Eligible Sources of Income

ITR-1 supports only limited income heads.

Eligible income includes:

1. Salary or pension
2. One house property
3. Other sources excluding lottery and racehorse income
4. Agricultural income up to ₹5,000

House Property Rules Under ITR-1

You can file ITR-1 if:

• You own only one house property
• Loss from house property does not exceed allowed limits
• There is no brought-forward loss from previous years

If you own multiple properties, use ITR-2.

Who Is Not Eligible to File ITR-1 in India?

Many taxpayers incorrectly choose ITR-1 despite ineligibility. This can trigger notices and delays in refunds.

You cannot file ITR-1 if you have:

• Total income above ₹50 lakh
• Capital gains taxable under normal provisions
• More than one house property
• Business or professional income
• Foreign assets or foreign income
• Director in a company
• Investment in unlisted equity shares
• Deferred tax on ESOPs from eligible startups
• Income from lottery or horse racing
• Agricultural income exceeding ₹5,000
• Tax deducted under Section 194N
• Claim for relief under Sections 90/90A/91 for foreign taxes
• Carry forward or brought-forward losses

ITR-1 vs ITR-2 Eligibility for Taxpayers

One of the most common taxpayer questions is whether they should file ITR-1 or ITR-2.

Here is a simple comparison:

Situation	ITR-1	ITR-2
Salary income	Yes	Yes
Income above ₹50 lakh	No	Yes
Capital gains	Limited cases only	Yes
Multiple house properties	No	Yes
Foreign assets	No	Yes
Director in company	No	Yes
Unlisted shares	No	Yes
NRI/RNOR	No	Yes

Example: When ITR-2 Becomes Mandatory

Sneha earns:

• Salary: ₹24 lakh
• LTCG from mutual funds: ₹3 lakh
• Owns two residential properties

She cannot use ITR-1. She must file ITR-2.

Latest Changes in ITR-1 Form AY 2026-27

The government periodically updates return forms to improve reporting and compliance.

Some expected and continuing changes relevant for AY 2026-27 include:

Enhanced AIS and TIS Validation

The Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) now prefill:

• Interest income
• Dividend income
• Securities transactions
• TDS details

Taxpayers should reconcile all entries before submission.

You can access AIS through the Compliance Portal.

Expanded Disclosure Requirements

The Income Tax Department continues to strengthen:

• High-value transaction reporting
• Bank interest matching
• Digital asset transaction monitoring

New Tax Regime Default Option

Under Section 115BAC, the new tax regime remains the default regime unless the taxpayer opts otherwise.

For FY 2025-26:

• Standard deduction under the new regime continues
• Revised slab benefits may apply depending on Union Budget amendments

Refer to the latest CBDT notifications for updates.

Documents Required for ITR-1 Filing in India

Before filing, keep these documents ready to avoid errors.

Mandatory Documents

• PAN card
• Aadhaar card
• Form 16 from employer
• Salary slips
• Bank statements
• Interest certificates
• TDS certificates (Form 16A if applicable)

Additional Documents

• Home loan interest certificate
• Rent receipts for HRA claims
• Investment proofs under Section 80C
• Health insurance premium receipts under Section 80D
• AIS and Form 26AS verification

You can download Form 26AS from the TRACES portal linked through the Income Tax e-filing portal.

How to File ITR-1 Online for AY 2026-27

The Income Tax Department provides online and offline filing utilities. Most taxpayers now prefer online filing.

Step-by-Step Process

Step 1: Login to the Portal

Visit: https://www.incometax.gov.in/

Login using:

• PAN
• Password

Step 2: Select File Income Tax Return

Choose:

• Assessment Year: AY 2026-27
• Online mode
• Individual taxpayer

Step 3: Select ITR-1

The system may suggest the applicable form based on your profile.

Choose ITR-1 Sahaj only if eligible.

Step 4: Verify Prefilled Data

Check:

• Personal details
• Salary income
• TDS
• Bank accounts
• Interest income

Cross-check with:

• Form 16
• AIS
• Form 26AS

Step 5: Claim Deductions

Enter deductions under:

• Section 80C
• Section 80D
• Section 80TTA
• Home loan interest under Section 24

Step 6: Choose Tax Regime

Select:

• Old tax regime or
• New tax regime

Compare tax liability carefully before submission.

Step 7: Validate and Submit

After validation:

• Submit return
• E-verify using Aadhaar OTP, net banking, or DSC

E-verification must generally be completed within prescribed timelines.

Common Mistakes While Filing ITR-1

Choosing ITR-1 Despite Capital Gains

Even small taxable capital gains may require ITR-2.

Ignoring Interest Income

Many taxpayers forget:

• Savings interest
• FD interest
• RD interest

AIS now captures most banking transactions.

Not Reporting Correct House Property Details

Mismatch in:

• Interest deduction
• Home loan reporting can trigger scrutiny.

Mismatch Between Form 16 and AIS

Always reconcile salary and TDS figures before submission.

Frequently Asked Questions on ITR-1 Sahaj Filing Rules FY 2025-26

Can I file ITR-1 with dividend income?

Yes, if total income remains within ₹50 lakh and other eligibility conditions are satisfied.

Can I file ITR-1 if I changed jobs?

Yes. Salaried employees with multiple employers can still use ITR-1 if all other conditions are met.

Can pensioners use ITR-1?

Yes. Pension income is treated similarly to salary income.

Can ITR-1 be revised?

Yes. Revised returns can generally be filed under Section 139(5) within prescribed timelines.

Is agricultural income allowed in ITR-1?

Yes, but only up to ₹5,000.

Which Taxpayers Should Avoid ITR-1?

You should directly consider ITR-2 or ITR-3 if you have:

• Stock market trading
• Crypto income
• Foreign shares
• Rental income from multiple properties
• Freelancing or consulting income
• Partnership firm income

Using the wrong form can invalidate your return filing.

Final Thoughts on Who Can File ITR-1 for AY 2026-27

Understanding who can file ITR-1 for AY 2026-27 helps you avoid defective returns, notices, and refund delays. ITR-1 Sahaj remains ideal for resident salaried individuals with straightforward income up to ₹50 lakh. However, taxpayers with capital gains, multiple properties, business income, or foreign assets should carefully review ITR-1 vs ITR-2 eligibility before filing.

Before submitting your return, reconcile Form 16, AIS, and Form 26AS, keep all supporting documents ready, and verify whether you satisfy the complete ITR-1 eligibility criteria AY 2026-27.