Filing ITR-1 AY 2026-27: 5 New Changes Every Salaried Taxpayer Must Know Before Filing Income Tax Return

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Know the 5 major changes in the ITR-1 Excel Utility for AY 2026-27. Learn about two house properties, rental income, 80G donation, political donation reporting, eligibility and documents required before filing your Income Tax Return.

Filing ITR-1 AY 2026-27: 5 New Changes Every Salaried Taxpayer Must Know Before Filing Income Tax Return

If you are a salaried employee and planning to file your Income Tax Return (ITR-1) for Assessment Year (AY) 2026-27, don't file your return without checking the latest changes.

The Income Tax Department has introduced several important updates in the ITR-1 Excel Utility. These changes mainly focus on better transparency, accurate reporting, and stronger verification of tax claims.

If you miss these new requirements, your return may face delays, notices, or additional verification.

In this article, let's understand all the important changes in simple words.

Why These Changes Matter?

The Income Tax Department wants taxpayers to provide more complete information instead of only entering figures.

Now, if you claim deductions or report rental income, you may need additional information like:

  • PAN

  • Aadhaar Number

  • IFSC Code

  • Transaction Reference Number

  • Co-owner Details

  • Tenant Details

This helps reduce incorrect claims and improves tax compliance.

1. ITR-1 Now Allows Reporting of Two House Properties

This is one of the biggest reliefs for salaried taxpayers.

Earlier, if you owned two house properties, many taxpayers had to file ITR-2 instead of ITR-1.

Now, the latest Excel Utility allows eligible taxpayers to report income from up to two house properties while continuing to use ITR-1 (Sahaj).

A new House Property (HP) sheet has been added in the utility.

Example

Suppose Rahul owns:

  • One self-occupied flat in Pune

  • One rented apartment in Mumbai

If he satisfies all other ITR-1 conditions, he can now report both properties directly in ITR-1.

This makes return filing much simpler.

2. More Details Required for Rental Income

Taxpayers earning rental income now need to provide much more information.

The updated utility asks for details of:

Co-Owners

You can report details of up to 7 co-owners, including:

  • Name

  • PAN

  • Aadhaar Number

  • Ownership Percentage

Tenants

You may also need details of up to 3 tenants, including:

  • Name

  • PAN

  • Aadhaar Number (where applicable)

Why?

The Income Tax Department wants better verification of rental income and ownership details.

Earlier, these disclosures were not required.

3. New Information Required for Section 80G Donations

If you claim deduction for donations made to approved charitable institutions under Section 80G, additional details are now compulsory.

Apart from:

  • Name of the Trust

  • PAN of the Trust

  • Donation Amount

You must also provide:

  • Transaction Reference Number

  • Payment Mode

    • UPI

    • Cheque

    • IMPS

    • NEFT

    • RTGS

  • IFSC Code of Recipient Bank

Example

If you donated ₹10,000 through UPI, keep:

  • UPI Transaction ID

  • Donation Receipt

  • PAN of Trust

  • IFSC Code

These details may be required while filing your return.

4. Political Donation Reporting Becomes More Detailed

If you claim deduction under Section 80GGC for donations made to political parties, the reporting requirements have increased.

Now taxpayers must provide:

  • Political Party Name

  • PAN of Political Party

Earlier, these details were not required.

This change is intended to improve transparency and prevent incorrect claims.

5. Stronger Documentation is Now Essential

The Income Tax Department is clearly moving towards document-based verification.

Before filing your ITR, keep all supporting documents ready.

These may include:

✅ PAN of Co-owner

✅ Aadhaar Details

✅ Tenant Information

✅ Donation Receipts

✅ Bank IFSC

✅ UPI Reference Number

✅ NEFT/RTGS Transaction Number

Keeping these documents ready can save time and reduce the chances of receiving a tax notice.

Who Can File ITR-1 for AY 2026-27?

You can generally use ITR-1 (Sahaj) if you are a Resident Individual and:

  • Total income is up to ₹50 lakh

  • Income from Salary or Pension

  • Income from up to two house properties

  • Income from Other Sources (excluding specified cases)

  • Long-Term Capital Gain under Section 112A up to ₹1.25 lakh, subject to prescribed conditions

Who Cannot Use ITR-1?

You cannot file ITR-1 if you have:

  • Business or Professional Income

  • Foreign Assets

  • Foreign Income

  • Capital Loss to Carry Forward

  • Other income not covered under ITR-1 eligibility

In such cases, you may need to file another applicable ITR form.

Documents You Should Keep Ready Before Filing

Here is a quick checklist.

Personal Documents

  • PAN Card

  • Aadhaar Card

  • Bank Account Details

Income Documents

  • Form 16

  • Salary Slips

  • Interest Certificates

  • Form 26AS

  • Annual Information Statement (AIS)

  • Taxpayer Information Summary (TIS)

House Property

  • Rental Agreement

  • Tenant Details

  • Co-owner Details

  • Home Loan Interest Certificate (if applicable)

Donation

  • Donation Receipt

  • PAN of Donee

  • IFSC Code

  • Transaction Reference Number

Due Date for ITR Filing AY 2026-27

The due date for most salaried taxpayers is 31 July 2026 (unless extended by the Income Tax Department).

Avoid waiting until the last week because collecting all the required information may take time.

Tips to Avoid Mistakes

  • Verify PAN and Aadhaar carefully.

  • Match income with Form 26AS and AIS.

  • Keep donation proof ready.

  • Check tenant and co-owner details.

  • Verify bank account information before submitting.

  • Review the return once before final submission.

Final Thoughts

The ITR-1 Excel Utility for AY 2026-27 introduces several important changes that every salaried taxpayer should understand.

The biggest relief is the ability to report up to two house properties while continuing to use ITR-1. At the same time, the Income Tax Department now expects much stronger documentation for rental income, charitable donations and political contributions.

Preparing your documents in advance and carefully reviewing the new disclosure requirements can help you file an accurate return, avoid unnecessary notices, and complete the filing process smoothly.

Frequently Asked Questions (FAQs)

1. Can I report two house properties in ITR-1 for AY 2026-27?

Yes. Eligible resident individuals can now report income from up to two house properties using ITR-1, subject to the prescribed conditions.

2. What new details are required for rental income?

You may need to provide co-owner details (up to seven) and tenant details (up to three), including PAN, Aadhaar and ownership share where applicable.

3. What additional information is required for Section 80G donations?

You must provide the donee's PAN, transaction reference number, payment mode and the recipient bank's IFSC code, along with the donation amount.

4. What is the ITR filing due date for AY 2026-27?

For most salaried taxpayers, the due date is 31 July 2026, unless the government announces an extension.

5. Who cannot file ITR-1?

Individuals with business income, foreign assets, foreign income, or capital losses that need to be carried forward are generally not eligible to use ITR-1.


ITR-1 AY 2026-27, ITR Filing 2026, Income Tax Return, Income Tax India, ITR-1 Excel Utility, Salaried Taxpayer, Section 80G, House Property Income, Rental Income, Income Tax Return Filing, Tax Update 2026, Income Tax News, AY 2026-27 Changes

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