Kamal Ghorui
The government on March 30, 2026 notified Income Tax Return (ITR) forms ITR-1 to ITR-7 for the assessment year 2026-27, marking the start of the ITR filing season. Individuals, pensioners, professionals and other taxpayers can now file their returns using the applicable forms by July 31, 2026.A key change this year relates to ITR-1 (Sahaj), which now allows reporting of income from up to two house properties, easing compliance for a wider set of taxpayers.“One of the welcome change in ITR 1 is that Now ITR 1 can also be filed for income from “two house properties”. Earlier ITR 1 allowed reporting income from one house property only. So if you had two House property, you were required to file ITR 2 or ITR 3 which are more detailed form. With this change, taxpayers can find it easy to file ITR 1 and report their income from two houses,” said Chartered Accountant Ashish Niraj, Partner, A S N & Company, as quoted by ET.
Who can file ITR-1 (Sahaj)
ITR-1 can be used by individuals with relatively simple income profiles. However, it cannot be used if the taxpayer has:
- Profits and gains from business or profession
- Short-term capital gains
- Long-term capital gains under Section 112A exceeding Rs 1.25 lakh
- Income from more than one house property (earlier restriction, now relaxed to two houses)
- Income under “other sources” such as lottery winnings or racehorse activity
- Income taxable under special provisions like Sections 115BBDA or 115BBE
- Income to be apportioned under Section 5A
Who should file ITR-2
ITR-2 is applicable for individuals or Hindu Undivided Families (HUFs) who:
- Are not eligible to file ITR-1
- Do not have income from business or profession
- Do not earn income such as interest, salary, bonus or commission from a partnership firm
- Have income of spouse or minor child that needs to be clubbed
Who cannot file ITR-2
ITR-2 cannot be used by individuals or HUFs who have income from business or profession, including income received from a partnership firm in the form of interest, salary, bonus, commission or remuneration.With forms now notified, taxpayers can begin preparations for filing returns, with the deadline for most individual filers set for July 31, 2026.
