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ITR Filing AY2026-27: A key change this year is the expansion of ITR-1 (Sahaj), which now allows taxpayers to report income from up to two house properties.
Income Tax Return Filing For AY2026-27.
The government has notified the income tax return (ITR) forms for the assessment year (AY) 2026-27. The notification covers all forms — ITR-1 to ITR-7 — along with ITR-V and ITR-U, providing clarity across categories ranging from salaried individuals to businesses and trusts. The ITR filing for AY2026-27 will start soon once the income tax department releases online and offline utilities.
ITR-1 scope widened to ease compliance
A key change this year is the expansion of ITR-1 (Sahaj), which now allows taxpayers to report income from up to two house properties. Previously, individuals with more than one house property were required to shift to more complex forms, such as ITR-2 or ITR-3.
This move is expected to significantly ease the filing process for salaried individuals and pensioners with multiple properties by reducing compliance complexity and paperwork.
However, ITR-1 continues to come with restrictions. It cannot be used by individuals with business or professional income, capital gains exceeding Rs 1.25 lakh under Section 112A, or income from sources such as lottery winnings or racehorses. It also excludes company directors, individuals with foreign assets, and those with more complex financial structures.
Choosing between ITR-2 and ITR-3
Taxpayers who do not qualify for ITR-1 can opt for ITR-2 if they do not have business income but earn through multiple streams, such as salary, more than two house properties, or capital gains within specified limits. The form is also applicable in cases where income is clubbed with that of a spouse or minor child.
For individuals and Hindu Undivided Families (HUFs) with business or professional income, ITR-3 remains the applicable form. It covers income from business activities, partnerships, and professional services.
ITR-4 for presumptive taxation
ITR-4 (Sugam) is designed for individuals, HUFs, and firms (excluding LLPs) opting for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE, with income up to Rs 50 lakh. The form also permits limited reporting of capital gains under Section 112A, making it suitable for small taxpayers seeking simplified compliance.
Other forms for specialised categories
The remaining forms cater to specific taxpayer groups. ITR-5 applies to firms, LLPs, Associations of Persons (AOPs), and Bodies of Individuals (BOIs). ITR-6 is meant for companies not claiming exemption under Section 11, while ITR-7 is used by trusts, political parties, and certain institutions filing under designated provisions.
ITR-V and ITR-U: Completing and correcting filings
Alongside standard forms, ITR-V and ITR-U play a crucial role in compliance. ITR-V is used for verification in cases where returns are not e-verified and must be submitted within 30 days to complete the filing process.
ITR-U (Updated Return) allows taxpayers to rectify errors or disclose previously unreported income within 48 months from the end of the relevant assessment year, subject to additional tax depending on the delay.
ITR Deadlines For AY2026-27
For the assessment year 2026-27 (or financial year 2025-26), ITR deadlines are July 31 for individuals (ITR-1/ITR-2) and August 31 for non-audit business cases (ITR-3/ITR-4). Audit cases are due by October 31, 2026.
Also, revised returns can now be filed till March 31 of the next year, instead of December 31 earlier. But late filings after December will attract extra fees.
April 03, 2026, 10:56 IST
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