Important News for ITR-1 Filers: You Could Receive a Notice for These Mistakes..

The Income Tax Department has released the Excel utility for filing Income Tax Returns (ITR) for Assessment Year (AY) 2026-27. With this release, salaried individuals, pensioners, students, and small taxpayers can now begin filing their income tax returns. The Department has already made the online utility available on its e-filing portal. Consequently, taxpayers have the option to file their ITR using either the online or the offline method.

**July 31st is the Deadline**
For individuals who are not required to undergo a tax audit, the deadline for filing their ITR has been set for July 31, 2026. Tax experts advise that to avoid the last-minute rush and hassle, taxpayers should file their returns well in advance.

**Who Can File ITR-1?**
ITR-1—also known as the 'Sahaj' form—is designed for resident individuals whose annual income is up to ₹50 lakh. This includes income derived from salaries, pensions, a single house property, and interest earned from sources such as savings accounts or Fixed Deposits (FDs).

Additionally, agricultural income up to ₹5,000 and long-term capital gains up to ₹1.25 lakh (taxable under Section 112A) can also be reported in this form. However, if an individual has complex sources of income, owns more than one house property, or has significant capital gains, they are ineligible to file ITR-1.

**Who Cannot Use ITR-1?**
Individuals earning income from a business or profession, those with short-term capital gains, and those owning more than one house property cannot utilize the ITR-1 form. Furthermore, income derived from lotteries or income subject to special tax rates cannot be reported using this form.

**Essential Advice for First-Time ITR Filers**
According to Abhishek Soni, Co-founder and Chartered Accountant at Tax2win, only a verified Aadhaar number will be accepted henceforth; an Aadhaar Enrollment ID will no longer be considered valid. He further stated that taxpayers must accurately provide details regarding any loans they hold—including the name of the bank, the loan amount, and the account number. Additionally, it is mandatory to provide details of all active bank accounts.

**Ensure Reconciliation with Form 26AS and AIS**
Experts advise that before filing an ITR, one must verify and reconcile the information recorded in Form 26AS and AIS. If any discrepancies are found in the income details, the Income Tax Department may issue a notice, or the processing of the return could be delayed.

Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.