The Income Tax Department has officially started the income tax return (ITR) filing process for Assessment Year (AY) 2026-27.
Taxpayers can now file returns for Financial Year (FY) 2025-26 using the newly released Excel utilities for ITR-1 and ITR-4.
The department announced that both Excel utility and online filing options are now available on the income tax e-filing portal.
This marks the beginning of this year’s tax filing season with several important changes that taxpayers should know.
Big Relief for People Owning Two Houses
One of the biggest updates this year is related to ITR-1 (Sahaj).
Earlier, taxpayers could report income from only one house property in ITR-1.
Now, income from up to two house properties can be reported using the same form.
This change is expected to make return filing easier for many salaried individuals and middle-class taxpayers who own two homes.
Who Can File ITR-1 (Sahaj)?
ITR-1 can be used by resident individuals whose total annual income is up to ₹50 lakh.
It is meant for people earning income from:
Salary or pension
Up to two house properties
Interest and other sources
Long-term capital gains under Section 112A up to ₹1.25 lakh
Agricultural income up to ₹5,000
However, some taxpayers are not eligible to use ITR-1.
Who Cannot Use ITR-1?
You cannot file ITR-1 if:
You are a company director
You have invested in unlisted shares
You own foreign assets or foreign financial interests
TDS was deducted under Section 194N
You have deferred tax on ESOPs
Such taxpayers will need to use other applicable ITR forms.
Major Income Tax Changes Coming From April 2026
The tax system in India is also preparing for a major transformation from April 1, 2026.
The new Income Tax Act, 2025, will replace the old Income Tax Act of 1961, which has been in use for over six decades.
One of the biggest changes under the new law will be the replacement of the terms:
Financial Year (FY)
Assessment Year (AY)
These will be replaced with a single term called “Tax Year,” which is expected to reduce confusion and simplify tax filing.
New ITR Filing Deadlines Announced
The government has also revised return filing timelines for certain taxpayers.
Important Deadlines
Salaried Individuals: July 31 deadline remains unchanged
Self-employed professionals and non-audit cases: New deadline is August 31
The revised timelines are expected to give taxpayers more time to complete return filing properly.
