India expands ITR‑1 (Sahaj) eligibility and outlines belated filing rules for AY 2026‑27

The Income Tax Department’s ITR‑1 (Sahaj) form for Assessment Year 2026‑27 is aimed at resident individuals with uncomplicated income. Eligibility is limited to taxpayers whose total income does not exceed ₹50 million and who earn from salary or pension, interest, dividends, agricultural income up to ₹5,000, and up to two house properties (previously only one). The form now permits reporting long‑term capital gains under Section 112A up to ₹1.25 million for listed equity shares and equity mutual funds held for more than twelve months.

Taxpayers who miss the original filing deadline can still submit a belated return before the final deadline set by the department. Filing late allows taxpayers to claim refunds, maintain financial records and avoid larger compliance issues, though penalties may apply, including a late‑filing fee, interest on unpaid tax and possible loss of certain deductions. The department has strengthened data‑matching capabilities, increasing scrutiny of missed returns.