The income tax season is quietly knocking on the door again. If you are someone who usually waits till the last moment to file your return, here’s your early heads-up: The government has already rolled out the forms for the next assessment year, giving taxpayers a clear runway to get started.
On March 30, 2026, the government notified income tax return (ITR) forms from ITR-1 to ITR-7 for the assessment year 2026–27. This means individuals, pensioners, professionals and other taxpayers can now begin preparing to file their returns.
The deadline to submit ITR for most individual taxpayers remains July 31, 2026. Filing early not only reduces last-minute stress but also helps in faster processing of refunds.
One change in ITR-1 (also known as Sahaj) is likely to make life easier for many taxpayers. Here, it must be noted that ITR-1 can now be used to report income from up to two house properties. Earlier, taxpayers with two houses had to move to more detailed forms like ITR-2 or ITR-3.
This tweak may look minor, but it simplifies filing for many salaried individuals who own an additional house, especially those with a self-occupied property and another one on rent.
ITR-1 is meant for resident individuals with simple income sources such as salary, pension and limited other income. However, there are clear restrictions on what can be reported through this form.
If your income includes business or professional earnings, you cannot use ITR-1. The same applies if you have short-term capital gains or long-term capital gains under section 112A exceeding Rs 1.25 lakh.
Certain types of income also make you ineligible, such as lottery winnings, income from race horses, or income taxed at special rates under specific sections. Cases involving income apportionment under section 5A are also excluded.
However, if you do not qualify for ITR-1, the next option is usually ITR-2.
This form can be used by individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession. It is typically suitable for those with multiple income sources, including capital gains, more complex financial arrangements, or income that needs to be clubbed from a spouse or minor child.
On the other hand, ITR-2 is not meant for those earning income from a business or profession. If your income includes such earnings — including payments like interest, salary, bonus or commission received from a partnership firm — you will have to opt for other forms such as ITR-3.
Choosing the correct ITR form is more important than it may seem. Filing with the wrong form can lead to your return being treated as defective, which can delay processing or even require refiling.
With the forms now notified and a key relaxation in ITR-1, taxpayers have more clarity and slightly more convenience this year. The smarter move, however, remains the same, i.e., start early and file right.