The government has notified income tax return forms (ITR-1 to ITR-7) for the assessment year 2026-27, enabling individuals, pensioners, and other taxpayers to begin filing their returns within the stipulated timelines.

The updated forms include some notable changes. 

Among a major tweak in ITR-1 (Sahaj) is related to taxpayers with 2 homes. can now be used to report income from up to two house properties, compared to the earlier limit of one, which is expected to simplify filing for many taxpayers.

Who can file ITR-1 (Sahaj)?

The ITR-1 (Sahaj) is for individuals being a resident (other than not ordinarily resident) having total income upto Rs 50 lakh and having Income from Salaries, two house properties, other sources (Interest etc.), long-term capital gains under section 112A up to Rs 1.25 lakh, and agricultural income up to Rs 5,000. It is not for an individual who is either Director in a company or has invested in unlisted equity shares or in cases where TDS has been deducted u/s 194N or if income-tax is deferred on ESOP or has assets (including financial interest in any entity) located outside India.

The income tax filing sysetm is set for a major overhaul from April 1, 2026, with the new Income Tax Act, 2025, coming into force — replacing the six-decade-old 1961 legislation and introducing changes in compliance, terminology and taxation. 

Major reform under the new framework is the replacement of the ‘Financial Year’ (FY) and ‘Assessment Year’ (AY) with a single ‘tax year’, which could simplify the filing process and improve clarity for taxpayers.

Moreover, the timelines for filing income tax returns have also been revised, while July 31 deadline remains unchanged for salaried individuals, non-audit cases such as self-employed taxpayers and professionals will now have time until August 31 to file their returns.