The Central Board of Direct Taxes (CBDT) has officially notified the updated Income Tax Return (ITR) forms for Assessment Year (AY) 2026-27, introducing important changes aimed at simplifying tax filing and improving compliance. The revised forms come into effect from March 31, 2026, under the amended Income Tax Rules, 1962.
Revised ITR-1 (Sahaj): Who Can File?
The updated ITR-1 (Sahaj) form continues to be available for resident individuals with total income up to Rs 50 lakh. It is applicable for taxpayers earning income from:
- Salary or pension
- Up to two house properties
- Other sources such as interest income
- Long-term capital gains under Section 112A up to Rs 1.25 lakh
However, the form remains inapplicable for individuals who:
- Are directors in a company
- Have investments in unlisted equity shares
- Own foreign assets or have foreign income
ITR-4 (Sugam): Presumptive Taxpayers Get Updated Form
CBDT has also notified the revised ITR-4 (Sugam) form for AY 2026-27. This form applies to:
- Individuals
- Hindu Undivided Families (HUFs)
- Firms (excluding LLPs)
opting for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE, with total income up to Rs 50 lakh.
Key Changes in ITR Forms for AY 2026-27
The newly notified forms introduce several notable updates:
1. Two House Properties Allowed
Taxpayers can now report income from up to two house properties in ITR-1, making it more flexible for small taxpayers.
2. Continued Focus on New Tax Regime
The government continues to promote the new tax regime as the default option, encouraging simplified tax structures with lower rates and fewer deductions.
3. Enhanced Reporting Requirements
Additional disclosures have been introduced to improve transparency, especially for high-value financial transactions.
Effective Date
The revised ITR forms will be applicable for returns filed for AY 2026-27 onwards, with immediate effect from March 31, 2026.
Click here to view/download the official copy of the notification
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