The Income Tax Department has updated the ITR-1 (Sahaj) Excel utility for Assessment Year 2026-27, introducing several new disclosure requirements while maintaining its simplified return format. According to tax advisory platform ClearTax, ITR-1 can be filed by resident individuals with total income of up to ₹50 lakh from salary or pension, income from up to two house properties, income from other sources such as interest, and long-term capital gains under Section 112A of up to ₹1.25 lakh. However, taxpayers with business or professional income, foreign assets, capital losses to be carried forward or income that falls outside the prescribed eligibility criteria must file the applicable income tax return form. The eligibility perimeter of ITR-2 has narrowed this year because ITR-1 (Sahaj) has been widened, allowing resident individuals with total income up to ₹50 lakh to report income from up to two house properties in ITR-1 itself, as against one house property earlier.
One of the most significant changes this year is the expanded scope of ITR-1 for house property reporting. Eligible taxpayers can now report income from up to two house properties without having to shift to ITR-2 solely because they own a second property. The updated Excel utility includes a dedicated House Property schedule for reporting details of both properties, representing a major enhancement from previous years' limitations. This change allows taxpayers with multiple residential properties to maintain their simplified filing process while providing comprehensive reporting of all house property income. ITR-2 continues to be mandatory where there are three or more house properties, ensuring proper classification of complex property portfolios.
The revised ITR-1 utility seeks additional information from taxpayers reporting rental income, requiring more comprehensive disclosure than in previous years. Where applicable, taxpayers may now have to provide details of co-owners, including their names, PAN or Aadhaar and ownership share. The utility also contains fields for furnishing tenant details in specified cases, making rental income reporting more comprehensive than in previous years. For house rent allowance (HRA) claims under Section 10(13A), taxpayers must disclose their place of residence, HRA received, rent paid and salary details, ensuring that HRA details match Form 16 and rent records. Taxpayers must provide the landlord's Permanent Account Number (PAN) if annual rent exceeds ₹1 lakh, and correctly identify whether the residence is in a metro or non-metro city to determine the applicable threshold of 40% or 50% of salary.
Taxpayers claiming deductions under Section 80G for eligible charitable donations may now have to furnish additional information while filing their returns. According to the revised utility, apart from the donee's name, PAN and donation amount, taxpayers may need to provide the transaction reference number for specified electronic payment modes as well as the recipient bank's IFSC code, wherever applicable. Similarly, political donation claims under Section 80GGC require expanded disclosures, with taxpayers now required to furnish the name of the political party along with its Permanent Account Number (PAN) in the relevant schedule. Section 80GGC claims must be made through prescribed banking channels because cash contributions are not eligible for the deduction, and taxpayers should retain receipts and verify the donee's registration under Section 80G. These additional requirements ensure proper documentation and verification of charitable and political contributions.
The revised ITR-1 utility introduces detailed disclosure requirements for various deduction claims under Sections 80C, 80D, and 80G. For Section 80C claims, taxpayers must provide specific details depending on the investment type, with life insurance claims requiring policy numbers and contributions to PPF, ELSS, or NSC requiring relevant account reference numbers. Section 80D claims require insured person and insurer details, policy number, premium, payment mode and proof, with premiums for policies covering taxpayer, spouse and dependent children qualifying for deduction, while premiums for parents have separate limits. Taxpayers claiming home-loan interest deduction under Section 24(b) must state whether the loan came from a bank or another source, disclosing the lender's name, loan account number, sanction date, loan amount, outstanding balance, and interest claimed. These enhanced disclosures are designed to enable more accurate verification of exemption and deduction claims at the return-processing stage, with the department cross-checking claims against lender records, Form 16, Annual Information Statement (AIS) and Form 26AS.
