The approaching income tax season signals the time for taxpayers to start preparing for filing their returns. The government recently released the income tax return (ITR) forms for the assessment year 2026–27, allowing individuals, pensioners, professionals, and other taxpayers to initiate their tax return preparations.
The deadline for submitting ITR for most individual taxpayers is set for July 31, 2026. Filing early not only helps in reducing last-minute stress but also facilitates faster processing of refunds.
An important update in ITR-1, also known as Sahaj, now permits reporting income from up to two house properties, simplifying the process for many taxpayers who own multiple properties. Previously, individuals with two houses had to use more detailed forms like ITR-2 or ITR-3.
ITR-1 caters to resident individuals with straightforward income sources like salary, pension, and limited other earnings, with certain restrictions on reportable income. If your income involves business profits, professional earnings, short-term or long-term capital gains exceeding Rs 1.25 lakh, lottery winnings, income from race horses, or income taxed at special rates, ITR-1 may not be applicable, and you may need to consider ITR-2 or other suitable forms.
Choosing the correct ITR form is crucial to avoid processing delays or the need for refiling. With the newly released forms and the simplified reporting in ITR-1, taxpayers now have clearer guidelines for filing their returns this year. Starting early and selecting the right form remains the prudent approach for taxpayers.
This development ensures a smoother tax filing experience for individuals and provides clarity on the necessary steps for the upcoming tax season.