Who can file ITR-1 this year? Common mistakes to avoid while filing ITR-1 for AY 2026-27 on or before July 31, 2026

May 15, 2026

Synopsis
Individuals eligible for ITR-1 filing for AY 2026-27 must file by July 31, 2026. This form is for resident individuals with income up to ₹50 lakh from salary, one house property, and other simple sources. Avoid common errors like using Aadhaar enrolment IDs instead of verified Aadhaar numbers. Ensure accurate reporting of loans and bank accounts.

The Income Tax Department has released the excel utility for income tax return (ITR) filing for AY 2026-27 (not the same as Tax Year 2026-2027). The online utility was previously available on the e-filing ITR portal. This means most individuals can now start filing thier ITR.

For AY 2026-27, students, pensioners, salaried and others who don’t need to undergo an income tax audit must file their ITR on or before July 31, 2026. You can either use the offline excel utility or the online utility or ITR e-filing website to file your income tax return (ITR) on or before July 31, 2026.

For Tax Year 2026-2027, the ITR filing due date for students, salaried, pensioners and others who are not required to conduct tax audit is July 31, 2027.

Who can file ITR-1?

ITR-1 (Sahaj) can be filed by a resident individual whose total income doesn’t exceed Rs 50 lakh during the financial year and whose income sources are relatively simple. This includes income from salary or pension, single house property, and income from other sources such as interest income (from savings accounts, deposits, income tax refunds, or enhanced compensation) and family pension.

Moreover, taxpayers can report agricultural income up to Rs 5,000 and limited long-term capital gains (LTCG) under Section 112A up to Rs 1.25 lakh, provided there are no capital losses to be carried forward. Clubbed income of a spouse or minor can also be included, as long as it falls within the permitted income categories.

However, individuals with complex income sources, multiple properties, or higher capital gains are not eligible to file ITR-1.

Following are the types of income that cannot form part of ITR 1 form:-

(a) Profits and gains from business and professions;

(b) Short term Capital gains;

(c) Long-term capital gain u/s 112A exceeding Rs.1.25 lakhs

(d) Income from more than one house property;

(e) Income under the head other sources which is of following nature:-

(i) winnings from lottery;

(ii) Activity of owning and maintaining race horses;

(iii) Income taxable at special rates under section 115BBDA or section 115BBE;

(f) Income to be apportioned in accordance with provisions of section 5A

Common mistakes to avoid while filing ITR-1

Chartered Accountant Abhishek Soni, co-founder, Tax2Win, says that first-time taxpayers filing ITR-1 should pay close attention to updated compliance requirements and avoid common errors. Only a verified Aadhaar number is now accepted, and Aadhaar enrolment IDs are no longer valid. Taxpayers must also carefully fill in new reporting fields, such as details of loans, including loan amount, interest, bank name, and loan account number.

While reporting long-term capital gains under Section 112A, taxpayers should ensure that gains do not exceed Rs 1.25 lakh and that no losses are being carried forward, as ITR-1 allows only limited LTCG reporting. The enhanced dropdowns for deductions under Chapter VI-A should be used accurately to avoid incorrect claims.

Soni mentions that another important requirement is to disclose all active bank accounts (excluding dormant ones). First-time filers should also cross-check all income details with Form 26AS and AIS to ensure there are no mismatches, since discrepancies could lead to notices or delays in processing.

Practical issue with Form 146 in the online utility

Chartered Accountant Avinash Kumar Rao, Partner at Mohindra & Associates says that the newly introduced Form 145 (earlier Form 15CA) continues to serve as an event-based mandatory declaration for remittances to non-residents, while Form 146 (earlier Form 15CB) remains a Chartered Accountant’s certification requirement in cases involving taxable payments exceeding Rs 5 lakh in a financial year.

These forms are integral to ensuring compliance with withholding tax provisions under the Income-tax framework.

According to Rao, under the Income-tax Act, 1961 regime, taxpayers were provided both online and offline utility options. The availability of offline utilities played a critical role in mitigating portal-related disruptions, enabling taxpayers to prepare forms offline and upload them seamlessly, thereby avoiding duplication of effort.

Rao says that while the new Income-tax Act, 2025 envisages continuation of both online and offline modes, the offline utilities are yet to be released. Further, the online filing system is currently facing practical challenges—particularly with Form 146, where persistent errors at the signing stage are hindering successful submission.

Rao says: "It is therefore imperative for the department to address these technical issues on priority and expedite the release of offline utilities to ensure continuity, reliability, and ease of compliance in foreign remittance procedures."

[The Economic Times]