Income Tax Return Filing is officially kicked off the ITR filing season for Assessment Year (AY) 2026-27 on 15th May 2026. The department announced via its official X (Twitter) handle:
While the new Income Tax Act, 2025 came into force from 1st April 2026, Income Tax Return Filing FY 2025-26 (AY 2026-27) is governed entirely by the Income Tax Act, 1961. The old ITR form numbers (ITR-1, ITR-2, ITR-3, ITR-4, etc.) continue to apply. The new Act will only be relevant when filing returns for Tax Year 2026-27, due in 2027.
Table of Contents
Key Due Dates for AY 2026-27
| Taxpayer Category | Due Date |
| Salaried / Non-business individuals (ITR-1, ITR-2) | 31st July 2026 |
| Non-audit business/profession cases (ITR-3, ITR-4) | 31st August 2026 (New — extended from July 31 under Finance Act 2026) |
| Tax Audit cases | 31st October 2026 |
| Transfer Pricing cases | 30th November 2026 |
| Revised Return | 31st March 2027 (extended from Dec 31) |
| Updated Return (ITR-U) | Up to 31st March 2031 (48 months from end of AY) |
ITR-1 (SAHAJ) — Complete Guide
What is ITR-1?
ITR-1, popularly known as “Sahaj” (meaning “simple”), is the most basic and commonly used ITR form. It is designed for resident individuals with a simple income structure.
Who Can File ITR-1?
A taxpayer can file ITR-1 if all the following conditions are met:
- Residential Status: Resident Individual (NOT applicable to NRIs or Not Ordinarily Residents)
- Total Income: Up to ₹50 Lakh in FY 2025-26
- Income Sources Allowed:
- Income from Salary or Pension
- Income from up to 2 House Properties (New for AY 2026-27 — earlier only 1 house property was allowed)
- Income from Other Sources (e.g., bank interest, FD interest, savings account interest)
- Agricultural Income up to ₹5,000
- Long-Term Capital Gains (LTCG) under Section 112A up to ₹1.25 lakh (no brought-forward or carry-forward capital loss)
Who CANNOT File ITR-1?
You are NOT eligible to use ITR-1 if:
- You are an NRI or Not Ordinarily Resident
- Total income exceeds ₹50 lakh
- You have income from business or profession
- You have LTCG exceeding ₹1.25 lakh under Section 112A
- You own more than 2 house properties
- You have foreign income or foreign assets, or are a signing authority in any foreign account
- You have income from lottery, betting, racing, or gambling
- You have crypto / virtual digital asset income (TDS under Section 194S)
- Your TDS has been deducted under Section 194B (lottery) or 194R (benefits/perquisites)
- You are a Director in a company
- You hold unlisted equity shares
- You have brought-forward losses to be set off
Documents Required for ITR-1
| Document | Purpose |
| Form 16 (Part A & Part B) | TDS deducted by employer, salary breakup, deductions |
| Form 26AS | Consolidated TDS/TCS statement — verify against Form 16 |
| Annual Information Statement (AIS) | All financial transactions reported by third parties |
| Taxpayer Information Summary (TIS) | Summary of AIS data |
| Bank Statements / Passbook | Interest income from savings accounts & FDs |
| Interest Certificate from Bank/Post Office | For FD interest & recurring deposits |
| Rent Receipts & Landlord PAN | For HRA claim (PAN mandatory if rent > ₹1 lakh/year) |
| Investment Proofs (80C) | PPF, ELSS, LIC, NSC, home loan principal — policy no. / document ID now mandatory |
| Health Insurance Premium Receipt (80D) | Insurer name, policy number, premium amount |
| Home Loan Interest Certificate | For deduction under Section 24(b) |
| Education Loan Certificate (80E) | Lender name, interest amount |
| Aadhaar Card & PAN Card | Identity verification |
Key Changes in ITR-1 for AY 2026-27
- Two House Properties Now Allowed — Taxpayers owning a second home or a rented-out property can now use ITR-1 (previously had to file ITR-2)
- Detailed 80C Disclosure — Must specify investment type (PPF/ELSS/LIC etc.), amount, and payee details
- Detailed 80D Disclosure — Insurer name, policy number, and premium breakdown mandatory
- HRA Claim — Rent amount, landlord name, and PAN (if rent > ₹1 lakh) are now mandatory
- TDS Section Specification — Must specify the exact TDS section for each income type
- Schedule AL Threshold Raised — Asset & Liability disclosure now required only if income exceeds ₹1 crore (previously lower threshold)
- Bifurcation of Pre/Post July 23, 2024 Capital Gains Removed — Simplified reporting
ITR-4 (SUGAM) — Complete Guide
What is ITR-4?
ITR-4, known as “Sugam” (meaning “easy”), is designed for individuals, HUFs, and small businesses/professionals who opt for the Presumptive Taxation Scheme. It simplifies compliance by allowing them to declare income at a pre-determined rate without maintaining detailed books of accounts.
Who Can File ITR-4?
ITR-4 is applicable when all the following conditions are satisfied:
- Taxpayer Type: Resident Individual, Hindu Undivided Family (HUF), or Firm (excluding LLPs)
- Total Income: Up to ₹50 lakh
- Income Sources Allowed:
- Presumptive Business Income under Section 44AD (small businesses with turnover up to ₹2 crore; turnover up to ₹3 crore if cash receipts ≤ 5%)
- Presumptive Professional Income under Section 44ADA (specified professionals with gross receipts up to ₹75 lakh; up to ₹1.5 crore if cash receipts ≤ 5%)
- Presumptive Income from Goods Carriage under Section 44AE (up to 10 vehicles)
- Salary or Pension income
- Income from up to 2 House Properties (New for AY 2026-27)
- Income from Other Sources (interest, etc.)
- LTCG under Section 112A up to ₹1.25 lakh (no brought-forward capital loss)
- Freelancers can also opt for Section 44ADA if gross receipts ≤ ₹50 lakh
Who CANNOT File ITR-4?
You are NOT eligible for ITR-4 if:
- Your turnover/receipts exceed the prescribed presumptive limits
- You are an NRI or Not Ordinarily Resident
- You are a Director in a company
- You hold unlisted equity shares
- You have foreign assets or foreign income
- You are a Limited Liability Partnership (LLP)
- You have losses to carry forward (other than house property loss within limits)
- Income from lottery, gambling, or speculative business
Documents Required for ITR-4
| Document | Purpose |
| Form 26AS & AIS/TIS | Verify TDS, advance tax, and all reported income |
| Business / Profession Turnover Details | For calculating presumptive income |
| Bank Statements | To verify turnover, receipts, and interest income |
| GST Returns (GSTR-1/3B) | Cross-verify turnover with IT returns |
| Form 16A | TDS certificates from clients (if applicable) |
| Investment Proofs (80C, 80D, etc.) | With policy numbers and payee details |
| Rent Receipts | For HRA if applicable |
| Home Loan / Vehicle Loan Statements | For interest deduction |
| Bank Balance as on 31st March 2026 | Now mandatory in ITR-4 |
| PAN & Aadhaar | Mandatory for filing |
| Form 10-IEA | If opting out of New Tax Regime (for business/profession) |
Key Changes in ITR-4 for AY 2026-27
- Two House Properties Now Allowed — Previously only one house property was permitted
- Bank Balance & Investment Reporting — Mandatory reporting of bank balance and investments
- Section 234I Fee Disclosure — Now required in the form
- Form 10-IEA Realignment — Updated requirements for switching between old and new tax regimes
- Detailed Deduction Disclosures — Same enhanced disclosures as ITR-1 for 80C, 80D, HRA
- Extended Due Date — Non-audit ITR-4 filers now get till 31st August 2026 (vs July 31 earlier)
- Schedule AL Threshold Raised — Disclosure only if income > ₹1 crore
Presumptive Taxation — Quick Reference (For ITR-4 Filers)
| Section | Applicable To | Turnover / Receipt Limit | Deemed Income Rate |
| 44AD | Small Businesses | ₹2 crore (₹3 cr if ≤5% cash) | 8% of turnover (6% for digital receipts) |
| 44ADA | Specified Professionals | ₹75 lakh (₹1.5 cr if ≤5% cash) | 50% of gross receipts |
| 44AE | Goods Carriage Owners | Up to 10 vehicles | ₹1,000/ton/month (heavy goods); ₹7,500/vehicle/month (others) |
New Tax Regime vs Old Tax Regime — AY 2026-27
- The New Tax Regime remains the default for AY 2026-27
- If you want the Old Tax Regime, you must actively opt for it while filing your ITR
- Salaried individuals (non-business): Can switch between regimes every year directly in the ITR
- Business/profession taxpayers (ITR-4): Must file Form 10-IEA before the due date to opt out of the New Tax Regime. This option is available only once in a lifetime
New Cities Added to 50% HRA Exemption
Under the new Income Tax Rules 2026, the following cities are now eligible for 50% HRA exemption (earlier only Mumbai, Delhi, Kolkata, Chennai qualified):
- Bengaluru
- Hyderabad
- Pune
- Ahmedabad
All other cities continue to be eligible for 40% HRA exemption.
How to File ITR-1 / ITR-4 Online
Method 1: Online Filing (Recommended)
- Visit https://www.incometax.gov.in
- Login with PAN/Aadhaar and password
- Go to e-File → Income Tax Returns → File Income Tax Return
- Select AY 2026-27, filing type as Original, and appropriate ITR form
- Use pre-filled data, verify with AIS/Form 26AS, fill remaining details
- Compute tax, pay any balance tax, and submit
- E-verify within 30 days (via Aadhaar OTP, Net Banking, or EVC)
Method 2: Excel Utility (Offline)
- Download Excel utility from the Downloads section of the e-filing portal
- Fill in all income and deduction details offline
- Validate and generate a JSON file
- Upload the JSON file on the e-filing portal
- Submit and e-verify within 30 days
Late Filing Penalty (Section 234F)
| Total Income | Late Filing Fee |
| Up to ₹5 lakh | ₹1,000 |
| Above ₹5 lakh | ₹5,000 |
Filing after the due date also results in interest under Section 234A and loss of carry-forward of losses.
Summary — ITR-1 vs ITR-4 at a Glance
| Feature | ITR-1 (Sahaj) | ITR-4 (Sugam) |
| For | Salaried / Pensioners | Business / Professionals (Presumptive) |
| Taxpayer Type | Resident Individual | Individual, HUF, Firm (not LLP) |
| Income Limit | ₹50 lakh | ₹50 lakh |
| Business Income | ❌ Not Allowed | ✅ Under 44AD/44ADA/44AE |
| House Properties | Up to 2 | Up to 2 |
| LTCG (Sec 112A) | Up to ₹1.25 lakh | Up to ₹1.25 lakh |
| Filing Deadline | July 31, 2026 | August 31, 2026 |
| Complexity | Simple | Moderate |