ITR-1 Guide 2026-27

ITR-1 Guide for 2026: Easier Filing for Your 2025-26 Income

Simplified filing for the 2026 tax season.

As we hit the 2026 tax season, things look a bit different. Even though a new tax law (The Income Tax Act, 2025) has started, you are still filing for the money you earned between April 1, 2025, and March 31, 2026. This means you will still follow the "old" 1961 rules for this specific filing.

1. What’s New This Year?

  • The "Two-House" Rule: You can now use this simple form even if you own two houses. Previously, owning more than one house forced you into a complex form.
  • Small Stock Profits: Profits up to ₹1.25 lakh from selling stocks or mutual funds (LTCG) can now be reported directly in ITR-1.
  • Aadhaar is Mandatory: You must use your 12-digit Aadhaar number. Enrollment IDs are no longer accepted.
  • The Website "Switch": Ensure you toggle to the "Income Tax Act, 1961" section on the portal since you are filing for the previous year's income.

2. Can You Use the ITR-1 Form?

You can file ITR-1 if you are a Resident Individual with total income up to ₹50 Lakh from:

  • Salary or Pension.
  • Up to two house properties.
  • Interest (Savings, FD) or Family Pension.
  • Agricultural income up to ₹5,000.
  • Small stock profits (LTCG) up to ₹1.25 lakh.

Note: Directors, holders of unlisted shares, or business owners cannot use this form.

3. Important Dates & Late Fees

Goal Deadline
Normal Filing Deadline July 31, 2026
Late Filing (with fine) December 31, 2026
Correction Deadline March 31, 2027

Late Fee: ₹5,000 if income is above ₹5 Lakh; ₹1,000 if below.

4. How to File: Step-by-Step

  1. Get Your Paperwork Ready: Download Form 16 and your AIS/TIS from the portal to verify your earned income.
  2. Log In: Access incometax.gov.in using your PAN or Aadhaar.
  3. Start Filing: Select Year 2026-27 and choose "Online" mode.
  4. Check Your Info: Validate pre-filled personal info, bank details, and income numbers.
  5. Pick Your Tax Style: The New Regime is default. Click "Opt-out" only if you want to claim specific deductions (like HRA or 80C) under the Old Regime.
  6. E-Verify: Use Aadhaar OTP to verify your return within 30 days of submission.
Pro Tip: Check your Form 26AS first! If the tax deducted doesn't match, contact your HR before hitting submit.

5. Practical Example: Meet Rahul

Rahul's Profile: Salary of ₹13.5 Lakh, owns 2 flats (one rented), and made ₹80,000 profit from stocks.

  • ITR-1 Eligibility: Yes, he qualifies because he has only 2 houses and his stock profit is under ₹1.25 Lakh.
  • Benefit: He gets a flat ₹75,000 standard deduction under the New Regime and pays ₹0 tax on his stock gains.

6. Frequently Asked Questions (FAQs)

Q: I own three houses. Can I still use ITR-1? A: No. The limit is two houses. For three or more, use ITR-2.
Q: What if my stock profits are ₹1.5 lakh? A: You must use ITR-2 and pay a 12.5% tax on the amount above the limit.
Q: Is the New Regime really the "Default"? A: Yes. You must specifically "Opt-out" to use the Old Regime.