Introduction: ITR Filing Season for AY 2026-27 Begins
The Income Tax Department has officially launched the ITR-1 (Sahaj) and ITR-4 (Sugam) forms for Assessment Year 2026-27 on the e-filing portal. As of May 2026, taxpayers can now begin filing their returns for the financial year 2025-26. With enhanced features, pre-filled data, and streamlined processes, the e-filing portal aims to make tax compliance easier for millions of Indian taxpayers.
This comprehensive guide walks you through everything you need to know about filing ITR-1 and ITR-4, including eligibility criteria, new features, required documents, and a detailed step-by-step filing process.
Understanding ITR-1 (Sahaj) and ITR-4 (Sugam)
What is ITR-1 (Sahaj)?
ITR-1 is the simplest income tax return form designed for resident individuals with straightforward income sources. It's popularly known as "Sahaj" meaning simple in Hindi, reflecting its user-friendly nature.
Who can file ITR-1 for AY 2026-27?
- Resident individuals (not ordinary residents or non-residents)
- Total income not exceeding ₹50 lakh
- Income from salary/pension
- Income from one house property (excluding cases with brought forward losses)
- Income from other sources (interest, dividends, etc.)
- Agricultural income up to ₹5,000
Who CANNOT file ITR-1?
- Individuals with income exceeding ₹50 lakh
- Directors in a company
- Holders of unlisted equity shares
- Individuals with foreign assets or foreign income
- Those with capital gains income
- Individuals with business/professional income
What is ITR-4 (Sugam)?
ITR-4 is designed for individuals, Hindu Undivided Families (HUFs), and firms (other than LLPs) with presumptive business income. It's called "Sugam" meaning convenient.
Who can file ITR-4 for AY 2026-27?
- Resident individuals, HUFs, and firms (not LLPs)
- Total income up to ₹50 lakh
- Business income computed under presumptive taxation (Section 44AD, 44ADA, 44AE)
- Professional income computed under Section 44ADA
- Income from salary/pension
- One house property income
- Income from other sources
Key limits for ITR-4:
- Business turnover up to ₹2 crore (Section 44AD)
- Professional gross receipts up to ₹50 lakh (Section 44ADA)
- Transport business under Section 44AE
New Features on E-Filing Portal for AY 2026-27
The Income Tax Department has introduced several enhancements for the current filing season:
- Enhanced Pre-filling: More details are now auto-populated from Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS)
- Improved AIS Integration: Real-time access to AIS with better categorization of income sources
- Digital Verification: Faster e-verification through Aadhaar OTP, net banking, and EVC
- Mobile-Friendly Interface: Responsive design for filing returns on smartphones
- AI-Powered Assistance: Chatbot support for common queries during filing
- JSON Upload Option: For tech-savvy users and tax professionals
Documents Required for ITR Filing
Before you begin filing, gather these essential documents:
Common Documents
- PAN Card (linked with Aadhaar)
- Aadhaar Card
- Bank account details (for refund, if any)
- Form 26AS (Tax Credit Statement)
- Annual Information Statement (AIS)
- TDS certificates (if applicable)
For Salaried Individuals (ITR-1)
- Form 16 from employer(s)
- Salary slips
- Interest certificates from banks
- Investment proofs for Section 80C, 80D, etc.
- House property details (address, rental income, home loan details)
For Business/Professional Income (ITR-4)
- Business income details
- Turnover/gross receipts figures
- Details of presumptive income calculation
- Professional receipts statements
Step-by-Step Guide to File ITR-1 Online
Step 1: Login to E-Filing Portal
Visit www.incometax.gov.in and log in using your PAN and password. If you're a first-time user, register on the portal first.
Step 2: Access ITR-1 Form
Navigate to Dashboard → e-File → Income Tax Returns → File Income Tax Return. Select Assessment Year 2026-27 and ITR Form-1.
Step 3: Choose Filing Mode
You can file online or prepare offline and upload. For most users, online filing is recommended as it's faster and shows pre-filled data.
Step 4: Verify Pre-filled Data
The system automatically fetches data from Form 26AS and AIS. Verify:
- Personal information (name, address, contact details)
- Salary income from Form 16
- TDS deducted
- Interest income from banks
Important: Cross-check with your Form 26AS and AIS. Report any discrepancies to your employer or deductor.
Step 5: Fill Income Details
Enter or verify income under different heads:
- Salary: Usually pre-filled from Form 16
- House Property: Enter rental income, municipal taxes, and home loan interest
- Other Sources: Interest from savings accounts, fixed deposits, family pension
Step 6: Claim Deductions
Under Chapter VI-A deductions, claim eligible deductions:
- Section 80C: Life insurance, PPF, ELSS, home loan principal (up to ₹1.5 lakh)
- Section 80D: Health insurance premiums
- Section 80E: Education loan interest
- Section 80G: Donations
- Section 80TTA/80TTB: Interest on savings accounts
Step 7: Tax Computation
The portal automatically calculates your tax liability under both old and new tax regimes. Choose the regime that offers lower tax liability. For FY 2025-26, the new tax regime is the default option unless you opt for the old regime.
Step 8: Pay Tax Due (if any)
If additional tax is payable, use Challan 280 to pay online. Enter the BSR code and challan details in the return.
Step 9: Review and Submit
Thoroughly review all sections. Click on Preview Return to see the final ITR. Once satisfied, click Submit.
Step 10: E-Verify Your Return
After submission, e-verify your return using:
- Aadhaar OTP (fastest method)
- Net banking
- Electronic Verification Code (EVC) through bank account or demat
- Digital Signature Certificate (DSC)
Alternatively, send a signed ITR-V to CPC Bangalore within 30 days.
Step-by-Step Guide to File ITR-4 Online
The process for ITR-4 is similar to ITR-1 with additional sections for business/professional income:
Key Differences in ITR-4 Filing
Business Income Section: Enter details under presumptive taxation:
- Section 44AD: Declare 8% of total turnover (6% for digital receipts) as income
- Section 44ADA: Declare 50% of gross receipts as professional income
- Section 44AE: For goods carriage, declare income per vehicle
Balance Sheet Not Required: Under presumptive taxation, you don't need to maintain detailed books of accounts or prepare balance sheets.
Advance Tax: If applicable, ensure you've paid advance tax in installments as per Section 208.
Follow the same steps as ITR-1 for verification and submission.
Common Mistakes to Avoid
- Not verifying Form 26AS and AIS: Always cross-check income and TDS details
- Wrong bank account details: Enter IFSC code and account number carefully for refunds
- Ignoring exempt income: Declare exempt income like agricultural income even if not taxable
- Missing e-verification: Returns are not processed until verified
- Incorrect deduction claims: Claim only eligible deductions with proper documentation
- Not reporting all income sources: Include even small interest income from savings accounts
Important Deadlines for AY 2026-27
- 31st July 2026: Due date for individuals not requiring audit
- 31st October 2026: Due date for taxpayers requiring audit
- 31st December 2026: Last date for filing belated/revised returns
Late Filing Penalties:
- Filing after due date but before 31st December 2026: Up to ₹5,000 penalty
- For total income below ₹5 lakh: Penalty up to ₹1,000
- Loss of carry forward of losses (except house property loss)
Tips for Hassle-Free ITR Filing
- File Early: Don't wait until the last minute; technical issues are common near deadlines
- Keep Documents Ready: Organize all certificates and statements beforehand
- Double-Check AIS: The Annual Information Statement may contain information not in Form 26AS
- Choose Tax Regime Wisely: Calculate tax under both regimes before selecting
- Save Acknowledgment: Download and save ITR-V for future reference
- Monitor Refund Status: Track refund status on the e-filing portal
What After Filing?
After successful e-verification:
- You'll receive an acknowledgment number
- ITR processing typically takes 2-4 weeks
- Check intimation under Section 143(1) on the portal
- Refunds are credited directly to your bank account
- Track refund status using the "Refund/Demand Status" option
Need Help?
If you face difficulties while filing:
- Use the e-filing portal chatbot for instant help
- Call the Income Tax Helpline: 1800-180-1961
- Visit your jurisdictional Assessing Officer
- Consult a qualified Chartered Accountant or tax professional
Conclusion
Filing ITR-1 and ITR-4 for AY 2026-27 is now more streamlined than ever with enhanced e-filing features. With pre-filled data, intuitive interfaces, and multiple verification options, the process has become significantly easier for taxpayers. Start early, gather all documents, verify pre-filled information carefully, and complete your return well before the deadline to avoid penalties and last-minute stress.
Remember, timely filing not only ensures compliance but also helps in faster processing of refunds and maintains your clean tax record. If your case is complex or you're unsure about any aspect, don't hesitate to seek professional assistance.