What changed for ITR-1?
For AY 2026-27, the Income Tax Department says ITR-1 can disclose income from up to two house properties. That is an important change for taxpayers who previously assumed a second property automatically ruled out Sahaj.
The ₹50 lakh ceiling still matters
ITR-1 remains aimed at resident individuals (other than RNOR) with total income up to ₹50 lakh and specified income sources. Crossing the limit moves the taxpayer out of ITR-1 even when the rest of the profile looks simple.
Small LTCG under Section 112A can fit
The Department's AY 2026-27 guidance permits LTCG under Section 112A up to ₹1.25 lakh within ITR-1, subject to all other conditions. Short-term capital gains are an exclusion.
Foreign assets and income are hard checks
Foreign assets, foreign income, or signing authority in a foreign account are among the published ITR-1 exclusions. The same theme appears in ITR-4 restrictions, so do not treat a simple salary profile as enough by itself.
Other exclusions people miss
Being a company director, holding unlisted equity shares, having income taxable at specified special rates, having a brought-forward or carry-forward loss, or having deferred tax on eligible-startup ESOP can each change the form choice.
Use a checklist, not a shortcut
Run the ITR Form Selector first, then compare your answers with the official ITR-1 FAQ and current utility before filing.
Primary source: Income Tax Department — ITR-1 FAQs.
Check ITR-1 eligibility →Frequently asked questions
Can ITR-1 include two house properties in AY 2026-27?
Yes. The Department says up to two house properties can be disclosed for AY 2026-27, subject to the rest of the form's eligibility conditions.
Can ITR-1 include capital gains?
Limited LTCG under Section 112A up to ₹1.25 lakh can fit the published ITR-1 route; short-term capital gains remain an exclusion.
Does a foreign bank account block ITR-1?
The Department lists foreign assets, foreign income and signing authority in a foreign account among ITR-1 exclusions.
Where should I verify the final form?
Use the Income Tax Department's current filing utilities and the official e-filing portal before submission.