The Income Tax Department has officially enabled ITR-1 and ITR-4 filing for Assessment Year (AY) 2026-27, allowing taxpayers to begin filing returns for income earned during the financial year 2025-26. After the Central Board of Direct Taxes (CBDT) notified the updated income tax return forms earlier this year, the online filing process is now live for eligible taxpayers.
The latest changes are expected to make return filing easier for salaried employees, pensioners, and small businesses while introducing a few new reporting requirements.
Who Can File ITR-1 and ITR-4 for AY 2026-27?
ITR-1, also known as Sahaj, is meant for individuals with simple income sources such as salary, pension, income from one or more house properties, and interest income. Taxpayers whose total annual income does not exceed ₹50 lakh can generally use this form if they meet the prescribed conditions.
ITR-4, known as Sugam, is designed for taxpayers opting for the presumptive taxation scheme under Sections 44AD, 44ADA, and 44AE. This form is commonly used by small business owners, professionals, and transport operators who qualify under the presumptive tax provisions.
Together, these two forms cover a large section of individual taxpayers across the country.
Major Changes Introduced in ITR-1 and ITR-4
One of the biggest updates for AY 2026-27 is the expansion of ITR-1 eligibility. Taxpayers can now report income from up to two house properties through ITR-1, providing significant relief to salaried individuals and pensioners who own an additional house. This change is expected to reduce the need for many taxpayers to switch to the more complex ITR-2 form.
For taxpayers filing ITR-4 under the presumptive taxation scheme, new disclosure requirements have been added. Individuals will now need to provide details of investments made during the financial year. In addition, reporting the closing balance of bank accounts has become mandatory, increasing transparency in financial disclosures.
Another notable update is the introduction of a secondary contact section across income tax return forms. Taxpayers will now be required to provide an alternate address, mobile number, and email ID. This will help the Income Tax Department maintain communication even if the primary contact details become unavailable.
Important ITR Filing Due Dates for AY 2026-27
Taxpayers should be aware that filing deadlines differ depending on the category of return being filed.
For salaried employees and pensioners filing ITR-1 or ITR-2, the due date is July 31, 2026.
For taxpayers filing ITR-3 or ITR-4 without a tax audit requirement, the deadline is August 31, 2026.
Tax audit cases can file returns up to October 31, 2026, while taxpayers covered under transfer pricing provisions have time until November 30, 2026.
The final date for filing a belated return is December 31, 2026.
Why Taxpayers Should Avoid Filing Too Early
Tax experts generally recommend waiting until mid-June before submitting income tax returns. Banks, employers, and financial institutions are required to upload TDS information, Form 16 details, and Annual Information Statement (AIS) records within a specified timeline.
Filing a return before all financial data is updated may result in mismatches between the taxpayer’s return and the information available with the Income Tax Department. Such discrepancies can lead to notices, delayed processing, or refund issues.
Before filing, taxpayers should carefully review their AIS and Form 26AS to ensure that all income details, taxes deducted, and financial transactions have been correctly reported.
Choosing Between the New and Old Tax Regime
The New Tax Regime continues to remain the default tax system. However, eligible taxpayers still have the option to choose the Old Tax Regime if it offers greater tax savings.
Salaried individuals should compare deductions, exemptions, and overall tax liability under both regimes before making a final decision. Since the choice can directly affect the amount of tax payable, a careful comparison is advisable before submitting the return.
E-Verification Is Mandatory After Filing
Submitting an income tax return is only the first step. Every taxpayer must complete the e-verification process within 30 days of filing the return.
Verification can be completed using Aadhaar OTP, net banking, or Electronic Verification Code (EVC). A return that is not verified within the prescribed period may be treated as invalid, making the filing incomplete from a legal standpoint.
Benefits of Filing Income Tax Returns Early
Filing an income tax return well before the deadline offers several advantages. Early filers often receive refunds faster because return processing begins sooner. It also helps taxpayers avoid last-minute website congestion, technical issues, and filing errors caused by rushing near the due date.
With ITR-1 and ITR-4 filing now available for AY 2026-27, eligible taxpayers can begin preparing their documents, review their AIS data carefully, and complete the filing process on time to ensure smooth processing and quicker refunds.
