In this guide
Salaried taxpayers can file ITR-1 online for FY 2025-26 (AY 2026-27) through the Income Tax e-Filing portal. However, selecting ITR-1 merely because your main income is salary can be a costly mistake. You must first confirm that you actually qualify for ITR-1 (Sahaj).
The Income Tax Department has enabled online filing of ITR-1 for AY 2026-27. This return continues to be governed by the Income-tax Act, 1961, even though the Income Tax Act, 2025 became effective from 1 April 2026.
Who Can File ITR-1 for AY 2026-27?
ITR-1 is available to a Resident and Ordinarily Resident individual with total income up to ₹50 lakh who satisfies the prescribed conditions. For AY 2026-27, the form can include salary/pension, income from up to two house properties, eligible other-source income, agricultural income up to ₹5,000 and Section 112A long-term capital gains up to ₹1.25 lakh.
| Particular | ITR-1 limit for AY 2026-27 |
|---|---|
| Residential status | Resident, other than RNOR |
| Total income | Up to ₹50 lakh |
| Salary/pension | Permitted |
| House properties | Up to two |
| Bank/FD interest, dividend etc. | Permitted |
| Agricultural income | Up to ₹5,000 |
| LTCG under Section 112A | Up to ₹1.25 lakh |
| Short-term capital gains | Not permitted |
| Business/professional income | Not permitted |
A notable 2026 change is that ITR-1 can now accommodate income from up to two house properties, instead of the earlier restriction to one.
ITR-1 is generally not available if you are an NRI/RNOR, company director, held unlisted equity shares, have foreign assets/income, business income, short-term capital gains, brought-forward losses or Section 112A LTCG exceeding ₹1.25 lakh.
https://taxclear.in/itr-filing/
Step 1: Select AY 2026-27 and ITR-1
After logging into the e-Filing portal:
e-File → Income Tax Returns → File Income Tax Return
Then select:
- Assessment Year: 2026-27
- Filing mode: Online
- Status: Individual
- Form: ITR-1
The official ITR-1 manual confirms this filing sequence.
Do not blindly select “income above basic exemption limit” as the reason for filing. Choose the reason that actually applies to your case.
Step 2: Check Personal Information and Tax Regime
The new tax regime is the default regime for AY 2026-27.
For a salaried person without business income, the tax regime can normally be selected through the ITR. However, opting out of the default new regime must be exercised through a return furnished under Section 139(1).
This is especially relevant now because the normal due date for most salaried taxpayers was 31 July 2026. A taxpayer filing after that date should not assume that the old-regime option remains available in a belated return.
Do not simply follow the rule “below ₹12 lakh = new regime; above ₹12 lakh = old regime.” Compare the actual tax under both systems before the due date.
₹12 Lakh Income Does Not Always Mean Zero Tax
For AY 2026-27, new-regime slabs begin with nil tax up to ₹4 lakh, and resident individuals can claim Section 87A rebate of up to ₹60,000 where total income does not exceed ₹12 lakh.
Salaried taxpayers also receive a ₹75,000 standard deduction under the new regime. Therefore, a gross normal salary of ₹12.75 lakh can potentially result in taxable salary of ₹12 lakh and zero normal-rate tax, assuming no other income changes the calculation.
But the ₹12 lakh rebate is not available against tax on certain special-rate income. For example, Section 87A rebate cannot be used against tax payable on Section 112A LTCG.
https://taxclear.in/tax-planning/
Step 3: Verify Gross Total Income
ITR-1 contains five main sections:
- Personal Information
- Gross Total Income
- Total Deductions
- Tax Paid
- Total Tax Liability
These sections may contain pre-filled information, but pre-filled does not mean automatically correct.
Compare salary with Form 16 and separately check:
- Savings-account interest;
- FD/RD interest;
- Dividends;
- Income-tax refund interest;
- House-property income;
- Section 112A LTCG; and
- Exempt income, where applicable.
AIS contains information including TDS/TCS, SFT transactions, taxes, demands and refunds, while Form 26AS primarily provides TDS/TCS information.
Step 4: Review Deductions
Under the default new regime, most traditional Chapter VI-A deductions such as Sections 80C and 80D are unavailable.
The ITR-1 portal notes that where the taxpayer remains in the new regime, only specified deductions such as eligible employer contribution under Section 80CCD(2) and Section 80CCH appear in the relevant deduction section.
Under the old regime, eligible taxpayers can consider deductions and exemptions such as 80C, 80D, HRA and other permitted claims.
Step 5: Check TDS and Pay Any Remaining Tax
Review the Tax Paid section against Form 26AS.
If additional tax remains payable, the portal provides a Pay Now option. The Department recommends paying the amount before completing the filing rather than leaving an outstanding liability.
https://taxclear.in/tds-tcs-filing/
Step 6: Submit and E-Verify the ITR
After reviewing the computation:
- Proceed to Verification;
- Preview the return;
- Correct validation errors;
- Submit the return; and
- Complete e-verification.
Verification can be completed using Aadhaar OTP, bank/demat EVC, net banking or DSC, depending on eligibility.
The return must generally be verified within 30 days of filing. If verification is completed late, the verification date may become the filing date, with corresponding late-filing consequences.
What If You Missed the 31 July 2026 Deadline?
For most salaried taxpayers without business/professional income, the original Section 139(1) deadline was 31 July 2026.
If you have not filed, a belated return for AY 2026-27 can generally be filed up to 31 December 2026, subject to earlier completion of assessment. Late-filing fee under Section 234F can be ₹1,000 where total income does not exceed ₹5 lakh and up to ₹5,000 otherwise, in addition to applicable interest.
https://taxclear.in/income-tax-notice/
Frequently Asked Questions
Can a salaried employee with two properties file ITR-1?
Yes. AY 2026-27 ITR-1 now permits income from up to two house properties, provided the other eligibility conditions are satisfied.
Can I file ITR-1 with ₹1 lakh LTCG from shares?
Yes, qualifying long-term capital gain under Section 112A up to ₹1.25 lakh can be reported in ITR-1. Short-term capital gains are not permitted.
Is the agricultural-income limit ₹5 lakh?
No. For ITR-1 eligibility, agricultural income is limited to ₹5,000, not ₹5 lakh.
Is Form 16 enough for filing ITR?
No. Form 16 should be reconciled with interest, dividends, capital gains, AIS and Form 26AS before submitting the return.
Is Aadhaar OTP compulsory for verification?
No. Aadhaar OTP is one method. EVC, net banking, DSC and physical ITR-V are also available in applicable cases.
Can I file ITR-1 myself in five minutes?
A simple pre-filled return may be completed quickly, but speed should not replace reconciliation. Incorrect form selection, missing interest, an unsuitable tax regime or incorrect capital-gain reporting can cost far more time later.
