CBDT Releases Updated ITR-1, ITR-4 Forms for AY 2026-27: Key Changes Explained



Quick Summary
The Central Board of Direct Taxes (CBDT) has released updated Income Tax Return (ITR) forms ITR-1 (Sahaj) and ITR-4 (Sugam) for Assessment Year 2026-27, effective from March 31, 2026. Key changes include allowing taxpayers to report income from up to two house properties in ITR-1. The government also continues to promote the new tax regime as the default option and has introduced enhanced reporting requirements for greater transparency.

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.

ITR-1 and ITR-4 Forms Updated for AY 2026-27

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

FAQ :

The updated ITR forms for Assessment Year 2026-27 are ITR-1 (Sahaj) and ITR-4 (Sugam), notified by the CBDT and effective from March 31, 2026.

Resident individuals with total income up to Rs 50 lakh, earning income from salary/pension, up to two house properties, other sources, and long-term capital gains under Section 112A up to Rs 1.25 lakh can file ITR-1.

Key changes include allowing income from up to two house properties in ITR-1, continued promotion of the new tax regime as default, and enhanced reporting requirements for high-value transactions.

Individuals who are directors in a company, have investments in unlisted equity shares, or own foreign assets or have foreign income cannot file ITR-1.

The updated ITR-4 (Sugam) form applies to individuals, HUFs, and firms (excluding LLPs) opting for the presumptive taxation scheme with total income up to Rs 50 lakh.

The revised ITR forms are applicable for returns filed for AY 2026-27 onwards, with immediate effect from March 31, 2026.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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