The Income Tax Department has officially notified all ITR forms (ITR-1 to ITR-7) for the Assessment Year (AY) 2026-27. This early notification allows taxpayers—whether salaried professionals or business owners—to prepare their documents well in advance. The deadline for most individual taxpayers to file their returns is July 31, 2026. Failing to meet this deadline could result in a penalty of up to ₹5,000 under Section 234F.

One of the most significant updates this year is to the ITR-1, also known as ‘Sahaj.’ Previously, taxpayers with more than one house property were required to file more complex forms like ITR-2 or ITR-3. However, under the new guidelines, resident individuals with income from up to two house properties can now use the simplified ITR-1 form, provided their total annual income does not exceed ₹50 lakh. This move is expected to drastically simplify the filing process for a large section of the middle class.

For those whose income exceeds ₹50 lakh or includes capital gains from the stock market, ITR-2 remains the applicable form. On the other hand, small business owners and professionals opting for the presumptive taxation scheme should use ITR-4 (Sugam). For more complex business structures or individuals with partnership income, ITR-3 or ITR-5 must be used. Choosing the wrong form can lead to your return being marked as defective by the tax department. Therefore, it is crucial to identify your income sources clearly before starting the e-filing process on the official portal.