Step to Step guide for filing ITR-1 (SAHAJ) for AY 2026-27

Tax season often triggers a sense of urgency, but if your income streams are relatively straightforward, filing your income tax return doesn’t need to be overwhelming. For salaried individuals, pensioners, and those with basic income sources, ITR-1 (also known as Sahaj) is the go-to simplified form provided by the Income Tax Department.

For Assessment Year (AY) 2026-27 (covering the financial year from April 1, 2025, to March 31, 2026), the e-filing portal has introduced key functional updates to expand eligibility and streamline data entry. Here is a practical, ground-level guide to help you navigate the process smoothly, avoid common errors, and complete your filing confidently.

What’s New in ITR-1 for AY 2026-27?

Before jumping into the portal, it is important to understand a few critical updates introduced for this filing cycle. These updates change who can use the form and how data is entered:

• Expanded House Property Rules: Previously, you could only use ITR-1 if you owned a single house property. The eligibility criteria have now expanded, allowing individuals with income or losses from up to two house properties to use this simplified form.
• Limited Equity Gains Reporting: In a major relief for retail investors, you can now report Long-Term Capital Gains (LTCG) under Section 112A (from listed equity shares and equity mutual funds) directly within ITR-1, provided the total gains do not exceed ₹1.25 lakh and you do not have any brought-forward or carry-forward losses.
• Dropping the Enrolment ID: The portal no longer accepts the 28-digit Aadhaar Enrolment ID. You must provide your valid 12-digit Aadhaar number.
• Stricter Deduction Disclosures: If you opt for the Old Tax Regime, deductions under Chapter VI-A require selecting specific sub-sections or clauses from a drop-down menu rather than just entering a lump-sum figure.

Step 1: Who Can (and Cannot) File ITR-1?

To save time, ensure you legally qualify to use this form before starting your draft.

You CAN file ITR-1 if:

• You are a Resident Individual (excluding Resident Not Ordinarily Resident/RNOR).
• Your total income does not exceed ₹50 lakh.
• Your income comes from Salaries, Pension, up to two House Properties, or “Other Sources” (such as bank interest, fixed deposits, or dividends).
• Your agricultural income is up to ₹5,000.
• Your equity-based LTCG under Section 112A is up to ₹1.25 lakh.

You CANNOT file ITR-1 if:

• You are an NRI or RNOR.
• Your total income exceeds ₹50 lakh.
• You have business profits, professional freelance income, or short-term capital gains.
• You own unlisted equity shares or foreign assets (or hold signing authority in a foreign account).
• You are a Director in any company.

Step 2: Gather Your Documentation

While the Indian income tax return is an “annexure-less” filing—meaning you do not upload physical receipts or certificates—you must have the base documents handy to verify the pre-filled data on the portal.

• Form 16: Issued by your employer, detailing your gross salary, tax deductions, and TDS.
• Annual Information Statement (AIS) & Taxpayer Information Summary (TIS): Available directly on the e-filing portal, these documents act as a comprehensive financial diary, tracking all your TDS, TCS, interest income, and share transactions.
• Form 26AS: To cross-verify the actual tax credited to your PAN.
• Interest Certificates: From banks and post offices for savings accounts and FDs.

Step 3: Accessing the Portal and Initializing the Return

1. Go to the official Income Tax e-Filing Portal.

2. Log in using your credentials—your User ID is your PAN, followed by your secure password.

3. On the main dashboard, navigate to: e-File → Income Tax Returns → File Income Tax Return.

4. Select Assessment Year 2026-27 and choose Online as your mode of filing.

5. Select your status as Individual and proceed to select ITR-1.

Step 4: The 5-Stage Verification Process

The online ITR-1 form is structured into five distinct schedules. You must validate each section sequentially.

1. Personal Information

This section pulls your name, PAN, Aadhaar, and contact details from your profile.

• Ensure your Nature of Employment (Central/State Govt, PSU, Private Sector, Pensioner, etc.) is selected accurately.
• Choosing Your Tax Regime: The New Tax Regime is the default option. If you wish to claim traditional deductions (like 80C, 80D, or HRA) under the Old Tax Regime, you must explicitly select “Yes” to opt out of the default system within this section. Salaried individuals filing ITR-1 do not need to file a separate Form 10-IEA.
• Verify your bank details. Ensure at least one primary account is validated for your tax refund.

2. Gross Total Income

Here, review your income data. Most of this will be auto-populated from your Form 16 and AIS.

• Salary/Pension: Check that your Gross Salary, Exempt Allowances (like HRA under the old regime), and the standard deduction of ₹75,000 match your records.
• House Property: Declare rental income or interest paid on home loans for up to two properties.
• Capital Gains: If you have equity LTCG under Section 112A up to ₹1.25 lakh, enter the specific transactional details as prompted.
• Other Sources: Ensure all bank interests, dividends, and family pensions are fully reported.

3. Total Deductions

If you are under the New Tax Regime, this section will largely be restricted, except for employer contributions to the NPS under Section 80CCD(2).

If you chose the Old Tax Regime, verify your investments like PPF, ELSS, life insurance (80C), health insurance premiums (80D), or education loan interest (80E). Use the drop-down elements carefully to link deductions to their exact clauses.

4. Tax Paid

This schedule aggregates all taxes already collected or paid on your behalf during the financial year. Compare the amounts listed under TDS (from salary and non-salary sources), TCS, and any Advance Tax or Self-Assessment Tax you paid directly against your Form 26AS. If there is a discrepancy, reach out to your deductor to correct their TDS statement.

5. Total Tax Liability

The portal automatically computes your final tax liability or refund based on your previous entries. It factors in tax slabs, rebates (such as Section 87A), surcharges, and the 4% health and education cess.

• If the net result shows Tax Payable, you must pay the outstanding amount online before submitting.
• If it shows a Refund, the amount will be credited to your validated bank account after processing.

Step 5: Preview, Submit, and E-Verify

Once all five sections show a green checkmark indicating validation, click on Preview Return. Read through the summary carefully to spot typos or omitted fields.

After ensuring the data is correct, click Proceed to Submission.

Crucial Final Step: Your filing remains legally incomplete until it is verified. The fastest approach is to choose E-Verify Now using an Aadhaar OTP sent to your registered mobile number. Alternatively, you can use Net Banking or Bank Account EVC. You have a window to verify your return, but completing it immediately prevents any risk of oversight.

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Once verified, a confirmation page will load, and an acknowledgment form (ITR-V) will be emailed to you, completing your filing process for the year. Contact NIRA Associates via mobile +918588900433 or email csniraassociates@gmail.com for getting your ITR for last Financial Year filed and any other doubts resolved.