ITR-1 Filing for AY 2026-27: 5 Important Changes Every Taxpayer Should Know Before Submitting Their Return

The Income Tax Department has introduced several updates to the ITR-1 (Sahaj) Excel utility for the Assessment Year (AY) 2026-27. While the return form remains the simplest option for eligible taxpayers, the latest version requires more detailed disclosures in several key areas.

From reporting income from two house properties to providing additional information for rental income and deduction claims, taxpayers will now need to keep more documents and records ready before filing their returns.

These changes are designed to improve transparency, simplify verification, and reduce errors in tax filings. If you're planning to file ITR-1 this year, here's everything you need to know.

Who Is Eligible to File ITR-1?

ITR-1 is meant for resident individuals whose total annual income does not exceed ₹50 lakh. It is suitable for taxpayers earning income from:

• Salary or pension

• Income from up to two house properties

• Income from other sources, such as savings account or fixed deposit interest

• Long-term capital gains under Section 112A up to ₹1.25 lakh, subject to prescribed conditions

However, taxpayers with business or professional income, foreign assets, foreign income, or capital losses that need to be carried forward must file another applicable income tax return form.

1. Reporting Two House Properties Is Now Easier

One of the most significant changes this year is the expansion of ITR-1's eligibility.

Eligible taxpayers can now report income from up to two house properties within ITR-1 itself. Earlier, many taxpayers had to shift to ITR-2 simply because they owned a second property.

The revised utility now includes a dedicated section for entering details of both properties, making the filing process more convenient for eligible homeowners.

2. Rental Income Requires More Detailed Disclosure

Taxpayers earning rental income should be prepared for additional reporting requirements.

The updated ITR-1 utility may require information such as:

• Details of co-owners

• PAN or Aadhaar of co-owners

• Percentage of ownership

• Tenant details in applicable cases

These additions are intended to improve the accuracy of rental income reporting and make verification easier for the tax department.

Keeping property ownership documents and rent agreements handy before filing can help avoid unnecessary delays.

3. Extra Information Needed for Section 80G Claims

If you are claiming a deduction for donations made to eligible charitable institutions under Section 80G, the return form now asks for more than just the donation amount.

Taxpayers may also have to provide:

• Name and PAN of the charitable institution

• Transaction reference number for eligible electronic payments

• Recipient bank's IFSC code, wherever applicable

Providing complete information will help validate the deduction claim and reduce the possibility of queries during return processing.

4. Political Donation Deductions Come With New Reporting Rules

The revised utility also introduces stricter disclosure requirements for deductions claimed under Section 80GGC, which relates to donations made to political parties.

Taxpayers claiming this deduction must now mention:

• Name of the political party

• Permanent Account Number (PAN) of the political party

This additional information is expected to improve transparency and facilitate easier verification of deduction claims.

5. Greater Focus on Accurate and Complete Reporting

A common feature across all the changes is the Income Tax Department's emphasis on detailed reporting.

Whether you're declaring rental income, claiming deductions, or reporting house property details, the revised ITR-1 utility expects more comprehensive information than before.

Although the filing process remains straightforward, incomplete disclosures or incorrect information could lead to processing delays or notices seeking clarification.

Documents You Should Keep Ready

To ensure a smooth filing experience, taxpayers should collect all relevant documents before starting the return.

These include:

• Form 16

• Salary statements

• Interest certificates from banks

• House property documents

• Home loan interest certificate, if applicable

• Rent agreements

• Co-owner information

• Tenant details

• Donation receipts

• Political contribution receipts

• Bank transaction records

Having these records readily available can make the filing process quicker and help avoid errors.

Why These Changes Matter

The Income Tax Department is gradually strengthening its digital verification system by collecting more complete information at the time of filing itself.

This approach allows authorities to verify claims efficiently while reducing mismatches between taxpayer declarations and available records.

For taxpayers, the best way to ensure a hassle-free filing experience is to provide accurate information supported by proper documentation.

Final Takeaway

The latest ITR-1 utility for AY 2026-27 may look familiar, but the reporting requirements have become more detailed. Taxpayers should not assume that the filing process is unchanged simply because they have filed ITR-1 in previous years.

Before submitting your return, carefully review the updated disclosure requirements, verify all supporting documents, and ensure every relevant detail is entered correctly. A few extra minutes spent preparing your information today can help you avoid unnecessary complications later and ensure your income tax return is processed without delays.