ITR-1 SAHAJ Filing Guide for AY 2026-27: Who Can File, Full Form Walkthrough & Everything You Need to Know

Every year, crores of Indian taxpayers sit down to file their Income Tax Return and face the same question: Which ITR form should I use, and how do I fill it correctly?

For most salaried individuals in India, the answer is ITR-1, also called SAHAJ, the simplest income tax return form available. But “simple” does not mean you can fill it carelessly. A wrong entry, a missed field, or filing the wrong form altogether can lead to notices, defective return alerts, or loss of deductions.

This guide is written to walk you through everything, who is eligible to file ITR-1, what income sources are covered, what all sections need to be filled in, and how to compute your tax correctly. We cover the actual ITR-1 form for AY 2026-27 (FY 2025-26) section by section.

What Is ITR-1 SAHAJ?

ITR-1 SAHAJ is the Income Tax Return form for individual resident taxpayers with relatively straightforward income. The word “SAHAJ” is a Hindi word meaning “simple” or “easy”,  and that is exactly what this form is designed to be.

It is filed for Assessment Year 2026-27, which covers income earned during Financial Year 2025-26 (i.e., 1st April 2025 to 31st March 2026).

The due date for filing ITR-1 for AY 2026-27 is 31st July 2026 (for non-audit cases).

Who Can File ITR-1? — Eligibility Conditions

This is the most important thing to get right. ITR-1 is only for individuals who meet all of the following conditions:

You CAN file ITR-1 if:

• You are an individual and a Resident in India (other than Not Ordinarily Resident)
• Your total income is up to ₹50 lakh for the financial year
• You have income from Salaries or Pension
• You have income from up to two House Properties
• You have income from Other Sources such as interest from savings accounts, FDs, or family pension
• You have Long-Term Capital Gains (LTCG) under Section 112A up to ₹1.25 lakh (this is new — ITR-1 now covers limited LTCG)
• You have Agricultural income up to ₹5,000

You CANNOT file ITR-1 if:

• You are a Director in any company
• You have invested in unlisted equity shares
• TDS has been deducted under Section 194N on your cash withdrawals
• Your income tax on ESOPs has been deferred
• You have assets outside India (including any financial interest in a foreign entity)
• You are Not Ordinarily Resident (NOR) or a Non-Resident Indian (NRI)
• You have income from more than two house properties
• You have business or professional income
• You have capital gains other than the limited LTCG under 112A allowed above
• You have losses to carry forward from previous years — you must use ITR-2 for that

If any of the above “cannot” conditions apply to you, you need to file ITR-2 or another appropriate form. Filing the wrong form is treated as a defective return.

Part A — General Information: What Personal Details to Fill

The first section of ITR-1 is Part A — General Information. This is where you enter your basic identity details. Fill each field accurately as it appears on your PAN card and Aadhaar card.

1. Name

Enter your First Name, Middle Name, and Last Name exactly as they appear on your PAN card. Do not use abbreviations or initials.

2. PAN (Permanent Account Number)

Your 10-digit PAN is mandatory. This is the primary identifier for your tax return. Make sure there are no typing errors.

3. Aadhaar Number or Aadhaar Enrolment ID

You must enter your 12-digit Aadhaar number. If your Aadhaar has not been issued yet, you can enter your Aadhaar Enrolment ID — a long number that includes the enrolment ID digits and the date and time of enrolment, entered continuously without any spaces or slashes.

4. Date of Birth

Enter in the format DD/MM/YYYY. This must match your PAN card records.

5. Nature of Employment

Select the appropriate category from the dropdown:

• Government — if you work for Central or State Government
• PSU — if you work for a Public Sector Undertaking
• Pensioner — if you are drawing a pension
• Others — for private sector employees and other cases

6. Contact Details (Email and Mobile)

You need to provide:

• Primary Email ID — the Income Tax Department will send all communications here
• Secondary Email ID — optional but recommended
• Primary Mobile Number — with country code 91 for India
• Secondary Mobile Number — optional

Make sure the email and mobile are active and accessible to you. Any OTPs or notices will come here.

7. Address

Provide your current communication address with complete details:

• Flat/Door/Block Number
• Name of Premises/Building/Village
• Road/Street/Post Office
• Area/Locality
• Town/City/District
• State (select from dropdown)
• Country/Region — for Indian addresses, select 91-INDIA
• PIN Code

You also have the option to provide a Secondary Address if different from the primary. If both are the same, select “Yes” to the question asking whether the secondary address is same as the primary.

New vs Old Tax Regime — A Critical Choice

Before you start filling in your income, ITR-1 for AY 2026-27 asks a very important question:

“Do you wish to exercise the option u/s 115BAC(6) to opt out of the new tax regime?”

The default is No, meaning your income and tax will be computed under the New Tax Regime.

• If you select No → Your tax is calculated under the New Tax Regime (lower slab rates, but most deductions not available)
• If you select Yes → Your tax is calculated under the Old Tax Regime (higher slab rates, but most deductions like 80C, 80D are available)

Important:To opt out (choose the Old Tax Regime), you must do so along with filing your original return under Section 139(1). You cannot change this later in most cases.

The form helpfully directs you to the Income Tax Calculator on the e-filing portal to estimate which regime is more beneficial for you before making this choice. We strongly recommend using it.

Seventh Proviso to Section 139(1) — Are You Filing Even Though Not Required To?

There is a special question in Part A asking whether you are filing a return under the Seventh Proviso to Section 139(1) — meaning you are not otherwise required to file a return but are filing because you meet one or more of the following conditions:

• You deposited more than ₹1 crore in one or more current accounts during the year
• You spent more than ₹2 lakh on foreign travel for yourself or anyone else
• You spent more than ₹1 lakh on electricity during the year
• fulfils such other conditions as may be prescribed,

If any of these apply, you must select “Yes” and provide the relevant information. This ensures the return is valid even if your taxable income is below the basic exemption limit.

Filing Status — Original, Revised, or Belated?

The form also asks how you are filing:

• 139(1) — On or before due date → Normal, timely filing (most common)
• 139(4) — Belated return → Filed after the due date of 31st July 2026
• 139(5) — Revised return → Filed to correct an earlier return
• 139(8A) — Updated return (ITR-U) → Filed using the separate ITR-U process within 48 months

If you are filing a revised or belated return, you must enter the Receipt Number of your original return and the Date of filing of that original return.

Part B — Computing Your Income: The Four Heads

This is the heart of ITR-1. Part B covers income from all sources you are required to report. Let us go through each one.

B1 — Income from Salary / Pension

Step 1: Gross Salary

Enter your total gross salary received during FY 2025-26. This is broken into three components:

• (ia) Salary as per Section 17(1) — Basic salary, DA, bonus, commission, etc.
• (ib) Value of Perquisites as per Section 17(2) — Non-monetary benefits like rent-free accommodation, car facility, etc.
• (ic) Profit in lieu of salary as per Section 17(3) — Terminal compensation, payments from unrecognised funds, etc.

All three add up to your Gross Salary (i = ia + ib + ic).

Step 2: Less — Allowances Exempt Under Section 10

Certain allowances you receive as part of your salary are exempt from tax. You need to reduce them from your gross salary. The most common one is:

• Section 10(13A) — House Rent Allowance (HRA) — If you live in a rented house and receive HRA, a portion of it is tax-exempt. The exempt amount is computed separately in Schedule 10(13A) (explained below).

Other exempt allowances (like Leave Travel Allowance, Children Education Allowance, etc.) can also be selected and entered here.

Step 3: Net Salary = Gross Salary − Exempt Allowances

Step 4: Deductions Under Section 16

After arriving at net salary, you can claim the following deductions under Section 16:

• Section 16(ia) — Standard Deduction: ₹75,000 (for FY 2025-26 under the New Tax Regime; ₹50,000 under Old Tax Regime). This is a flat deduction available to all salaried employees and pensioners.
• Section 16(ii) — Entertainment Allowance: Available only to government employees. The deduction is the least of: actual allowance received, 20% of basic salary, or ₹5,000.
• Section 16(iii) — Professional Tax: The actual professional tax paid by you during the year, as shown in your Form 16.

Step 5: Income Chargeable Under ‘Salaries’

This is: Net Salary − Deductions under Section 16 = B1

This figure flows into your Gross Total Income calculation.

Schedule 10(13A) — How to Calculate HRA Exemption

If you are claiming HRA exemption, you need to fill Schedule 10(13A) separately. Here is what you need:

1. Place of Residence — Select whether you live in a metro city (Delhi, Mumbai, Kolkata, Chennai) or non-metro. Metro cities get 50% of salary as HRA exemption; non-metros get 40%.
2. Actual HRA Received (A) — The total HRA you received from your employer during the year.
3. Actual Rent Paid — Total rent paid by you during the year.
4. Salary details under Section 17(1) — Specifically your Basic Salary and Dearness Allowance (DA), as HRA is calculated as a percentage of this.

The exempt HRA is the least of the following three:

• (A) Actual HRA received
• (B) Actual rent paid minus 10% of salary
• (C) 50% or 40% of salary (metro/non-metro)

The form auto-calculates this and flows the exempt amount into the Section 10 deductions in B1.

B2 — Income from House Property

ITR-1 for AY 2026-27 allows you to report income (or loss) from up to two house properties. This section is also backed by a detailed Schedule HP in the form.

What Type of Property Are You Reporting?

For each property, you first select the type:

• Self-Occupied — You or your family lives there; Annual Value is taken as NIL
• Let Out — Rented to a tenant
• Deemed Let Out — Vacant but you own more than two properties (only possible in ITR-2)

For a Let-Out Property — Step by Step

(i) Gross Rent Received/Receivable/Lettable Value Enter the total rent received or receivable for the full year. Even if you have not received all of it, include what is receivable.

(ii) Less: Tax Paid to Local Authorities Enter any municipal tax or property tax you paid to the local body (panchayat, municipality, corporation) during FY 2025-26. Only amounts actually paid during the year can be deducted.

(iii) Annual Value This is: Gross Rent − Municipal Tax Paid

(iv) Less: 30% of Annual Value (Standard Deduction) Under Section 24(a), you get a flat 30% deduction on the Annual Value for repairs and maintenance. This is a standard deduction — it does not matter what you actually spent. You simply get 30% of the Annual Value.

(v) Less: Interest Payable on Borrowed Capital (Section 24b) If you took a home loan to buy, construct, or renovate this property, you can deduct the interest paid on that loan.

For a let-out property, there is no upper limit on the interest deduction — you can claim the full amount. However, the maximum loss from house property that can be set off against your other income in ITR-1 is ₹2,00,000.

To claim this, you fill Schedule 24(b) with the following details for each loan:

• Loan taken from (Bank / Institution / Individual)
• IFSC Code of the bank
• PAN of the lender (if it’s a person or institution)
• Name of the bank/institution/person
• Loan Account Number
• Date of sanction of loan
• Total amount of loan
• Loan outstanding as on 31st March 2026
• Interest on borrowed capital for the year (u/s 24b)

You can enter details for up to 4 loans per property.

(vi) Arrears/Unrealised Rent Received During the Year Less 30% If you received any arrears of rent that were not taxed in earlier years, or previously unrealised rent that you have now received, enter that amount here — less 30%.

Final Computation for Each Property

Income from House Property = Annual Value of Your Share − (30% Standard Deduction + Interest on Loan) + Arrears/Unrealised Rent (Less 30%)

For a self-occupied property, the Annual Value is NIL. So your income from it will be negative (a loss) equal to the interest paid on your home loan, subject to a maximum of ₹2,00,000 under Section 24(b).

B2 — Total Income from House Property

After computing income/loss from both properties (1A and 1B), the combined figure is shown in B2. If it is a loss, enter it as a negative figure.

Note: If your total house property loss exceeds ₹2 lakh, you cannot set off the excess in ITR-1. Switch to ITR-2 to carry it forward.

B3 — Income from Other Sources

This section covers all income that does not fall under Salary or House Property. Common items include:

• Interest from savings bank accounts
• Interest from Fixed Deposits (FDs)
• Interest from recurring deposits
• Interest from NSC, Post Office schemes
• Dividend income from shares or mutual funds
• Family pension (minus the deduction under Section 57(iia))
• Any other income not covered above

For dividend income, the form asks you to enter the quarterly breakup:

• Up to 15-Jun-2025
• 16-Jun-2025 to 15-Sep-2025
• 16-Sep-2025 to 15-Dec-2025
• 16-Dec-2025 to 15-Mar-2026
• 16-Mar-2026 to 31-Mar-2026

This quarterly breakup is used for computing interest under Section 234C for shortfall in advance tax payment.

Long-Term Capital Gains Under Section 112A (New Addition in ITR-1)

For AY 2026-27, ITR-1 now allows individuals to report LTCG under Section 112A up to ₹1.25 lakh. This covers:

• Long-term capital gains from sale of listed equity shares
• Long-term capital gains from sale of equity-oriented mutual funds

You need to enter:

• (i) Total sale consideration
• (ii) Total cost of acquisition
• (iii) Long-term capital gains as per Section 112A (auto-calculated)

Important: LTCG up to ₹1.25 lakh is exempt from tax. If your LTCG exceeds ₹1.25 lakh in a year, you cannot use ITR-1 — you must file ITR-2.

B4 — Gross Total Income

Once all heads of income are filled:

Gross Total Income (B4) = B1 (Salary) + B2 (House Property) + B3 (Other Sources) + LTCG u/s 112A

Part C — Deductions and Taxable Total Income

After arriving at the Gross Total Income, you can claim deductions under Chapter VI-A to reduce your taxable income. Here are all the deductions available in ITR-1:

Section 80C — Most Common Deduction (Max ₹1.5 Lakh)

Covers investments and payments like:

• Life Insurance Premium
• PPF (Public Provident Fund)
• ELSS Mutual Funds
• NSC (National Savings Certificate)
• Principal repayment of home loan
• Children’s tuition fees
• Sukanya Samriddhi Yojana
• Fixed Deposits (5-year tax saver)

Section 80CCC — Pension Fund Contributions

Contributions to approved pension funds.

Section 80CCD(1) — NPS Contribution by Employee

Your own contribution to the National Pension System (NPS). Combined with 80C, the total limit under 80C + 80CCC + 80CCD(1) is ₹1.5 lakh.

Section 80CCD(1B) — Additional NPS Deduction

An additional deduction of up to ₹50,000 for your own contribution to NPS, over and above the ₹1.5 lakh limit. This is one of the best tax-saving tools for salaried taxpayers.

Section 80CCD(2) — Employer’s NPS Contribution

If your employer contributes to your NPS account, that amount is deductible — up to 10% of your basic salary + DA (14% for Central Government employees). This is available even under the New Tax Regime.

Section 80D — Health Insurance Premium

Deduction for health insurance premium paid for yourself, spouse, children, and parents. Limits vary by age:

• Self + Family: Up to ₹25,000
• Parents (below 60): Additional ₹25,000
• Parents (senior citizens, 60+): Additional ₹50,000
• If you (taxpayer) are also a senior citizen: Up to ₹50,000

You can also claim preventive health check-up expenses (up to ₹5,000 within the overall limits).

Section 80DD — Disabled Dependent

Deduction for maintenance and medical treatment of a dependent with disability. Fixed deductions of ₹75,000 (normal disability) or ₹1,25,000 (severe disability, 80%+).

Section 80DDB — Treatment of Specified Diseases

Deduction for actual medical expenditure on specified diseases (like cancer, neurological diseases, thalassemia, etc.) for yourself or your dependent.

Section 80E — Education Loan Interest

Interest paid on loans taken for higher education — for yourself, spouse, children, or a student for whom you are a legal guardian. No upper limit on the amount. Available for 8 years.

Section 80EEB — Electric Vehicle Loan

Deduction for interest on loans for purchase of an electric vehicle, up to ₹1.5 lakh subject to the conditions prescribed.

Section 80G — Donations

Deductions for donations to specified charitable institutions, PM Relief Fund, etc. The deduction is 50% or 100% of the donation amount depending on the institution. You need details of the donee organisation including its PAN.

Section 80GG — Rent Paid (No HRA Received)

If you pay rent but do not receive HRA from your employer, you can claim this deduction. You need to file Form 10BA and enter its acknowledgement number.

Section 80GGA — Donations for Scientific Research / Rural Development

For donations to approved research associations and institutions.

Section 80GGC — Contributions to Political Parties

Section 80TTA — Interest on Savings Bank Account

Deduction of up to ₹10,000 on interest earned from savings bank accounts.

Section 80TTB — Senior Citizens’ Interest Deduction

For resident senior citizens (60+), deduction of up to ₹50,000 on interest from deposits (savings, FDs, RDs) with banks, post offices, and cooperative banks.

Section 80U — Person with Disability

Fixed deduction for taxpayers who themselves have a certified disability: ₹75,000 (normal) or ₹1,25,000 (severe).

Section 80CCH — Agnipath Scheme Contributions

Deduction for contributions made to the Agniveer Corpus Fund under the Agnipath scheme.

C1 — Total Deductions

Sum of all deductions from 80C to 80CCH.

C2 — Total Taxable Income

Taxable Income = Gross Total Income (B4) − Total Deductions (C1)

This is the income on which your tax will be calculated.

Part D — Tax Computation

Once you have your taxable total income, the form calculates your tax:

D1 — Tax Payable on Total Income

Calculated as per the applicable tax slab rates (New or Old Regime, as selected earlier).

D2 — Rebate Under Section 87A

If your taxable income does not exceed ₹12 lakh (New Regime) or ₹5 lakh (Old Regime), you are entitled to a full rebate under Section 87A, making your tax liability nil.

D3 — Tax After Rebate

D1 minus D2.

D4 — Health and Education Cess @ 4%

4% is levied on D3. This goes towards funding health and education initiatives.

D5 — Total Tax and Cess

D3 + D4.

D6 — Relief Under Section 89

If you received salary in arrears (e.g., DA arrears) and have filed Form 10E on the e-filing portal, enter the relief amount here.

Interest Penalties (234A, 234B, 234C, 234F)

These are additional amounts you may have to pay if:

• 234A — You filed the return late (after the due date of 31st July 2026)
• 234B — You did not pay adequate Advance Tax during the year
• 234C — Your Advance Tax instalments were insufficient
• 234F — Late filing fee (₹5,000 if filed after the due date but before 31st December; reduced to ₹1,000 for those with income below ₹5 lakh)
• 234I — Fee for furnishing a revised return of income (newly introduced)

D11 — Total Tax, Fee, and Interest Payable

This is your final tax liability. After deducting TDS (Tax Deducted at Source) and advance tax already paid, the balance is what you either pay (tax payable) or receive back (refund).

TDS Details — What to Fill in the TDS Section

TDS1 — TDS from Salary (As per Form 16)

Enter details from your Form 16 issued by your employer:

• TAN of the employer
• Name of the employer
• Income chargeable under salaries
• Total TDS deducted

TDS2 — TDS from Other Sources

For TDS deducted on FD interest, rent, professional fees, etc. — as shown in your Form 26AS or Annual Information Statement (AIS).

TCS — Tax Collected at Source

If TCS was collected on any purchase (e.g., motor vehicles, overseas remittances), enter details from Form 27D in the TCS section.

Verification and Submission

After filling all sections, review your return carefully. The form includes a verification declaration where you certify that the information provided is correct and complete.

You can submit ITR-1:

• Online on the Income Tax e-filing portal (incometax.gov.in) using DSC (Digital Signature Certificate) or e-verification via Aadhaar OTP, net banking, or bank account validation
• Offline by generating the XML and uploading it (for those who prepare the form offline)

After submission,e-verify your return within 30 days. Failing to e-verify makes the return invalid, as if it was never filed.

Common Mistakes to Avoid While Filing ITR-1

1. Filing ITR-1 when you should file ITR-2 If you have capital gains other than limited LTCG u/s 112A, more than two properties, or foreign assets — you must use ITR-2. Filing the wrong form results in a defective return notice.

2. Not cross-checking with Form 26AS and AIS Always match your income figures against Form 26AS and the Annual Information Statement (AIS) on the e-filing portal. Any mismatch can trigger scrutiny.

3. Missing interest income Many taxpayers forget to report interest from savings accounts or FDs. Even if TDS was deducted, you must report the gross interest and claim the TDS credit separately.

4. Not claiming 80TTA deduction on savings interest If you reported savings interest correctly, also claim the ₹10,000 deduction under 80TTA (or ₹50,000 under 80TTB for senior citizens).

5. Wrong regime selection Compare both regimes before selecting. Once you opt for the Old Regime by filing the return under 139(1), the option is locked for salaried employees.

6. Not filing Form 10E before claiming Section 89 relief If you are claiming relief for salary arrears under Section 89, you must file Form 10E on the e-filing portal before submitting the return. Claiming 89 relief without Form 10E leads to a notice.

7. Leaving tenant PAN/Aadhaar blank when TDS is involved If TDS was deducted on rent under Section 194-IB, the PAN or Aadhaar of the tenant is mandatory. If TDS was deducted under Section 194-I, the TAN of the tenant is mandatory.

8. Not e-verifying the return Filing without e-verification means the return is invalid. Always e-verify using Aadhaar OTP, net banking, or DEMAT account — immediately after submission.

Summary: ITR-1 Filing Checklist for AY 2026-27

Before you submit, make sure you have:

• PAN and Aadhaar ready and linked
• Form 16 from your employer
• Form 26AS and AIS downloaded and reviewed
• Interest certificates from your bank (for FD/savings interest)
• Home loan interest certificate (if applicable)
• Rent receipts and HRA calculation (if applicable)
• Investment proofs for 80C, 80D, etc.
• Form 10E filed (if claiming Section 89 relief)
• Form 10BA filed (if claiming 80GG)
• Decided on Old vs New Tax Regime
• Cross-checked all TDS figures
• E-verified the return after submission