{"id":1222,"date":"2026-05-31T17:48:44","date_gmt":"2026-05-31T12:18:44","guid":{"rendered":"https:\/\/moneymita.com\/?p=1222"},"modified":"2026-07-06T17:08:37","modified_gmt":"2026-07-06T11:38:37","slug":"can-itr-1-be-filed-in-ay-2026-27-with-capital-gains","status":"publish","type":"post","link":"https:\/\/moneymita.com\/?p=1222","title":{"rendered":"CAN ITR-1 BE FILED IN AY 2026-27 WITH CAPITAL GAINS?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1222\" class=\"elementor elementor-1222\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1c06050e e-con-full e-flex e-con e-parent\" data-id=\"1c06050e\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5d6ca2ef elementor-widget elementor-widget-text-editor\" data-id=\"5d6ca2ef\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\n<p class=\"wp-block-paragraph\">The Income Tax Return (ITR) filing season for Assessment Year (AY) 2026-27 relating to the Financial Year (FY) 2025-26 has begun, and ITR-1 Sahaj continues to be the most commonly used return form for salaried individuals and pensioners. However, one question frequently arises among taxpayers: Can ITR-1 be filed in AY 2026-27 with capital gains?<\/p>\n\n<p class=\"wp-block-paragraph\"><br \/>The answer is yes, but only in limited cases. Under the latest rules, long-term capital gains (LTCG) under Section 112A of the Income Tax Act 1961 arising from the sale of listed equity shares or equity-oriented mutual funds can be reported in ITR-1, provided such gains do not exceed \u20b91.25 lakhs and other prescribed conditions are satisfied.<\/p>\n\n<p class=\"wp-block-paragraph\"><br \/>This is an important change because capital gains were traditionally associated with ITR-2. As a result, many taxpayers are now unsure about ITR-1 Sahaj eligibility in the AY 2026-27 and whether their capital gains can be reported in the simplified return form.<br \/>In this article, we will explain the rules relating to reporting of Capital Gains in ITR-1 Sahaj, who can file ITR-1, who cannot file ITR-1 in AY 2026-27 with practical examples, which capital gains\/ losses cannot be reported in ITR-1 and lastly if choosing tax regimes affect ITR-1 filing.<\/p>\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 ez-toc-wrap-left-text counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymita.com\/?p=1222\/#ITR-1_SAHAJ_Eligibility_in_AY_2026-27_Who_can_file\" >ITR-1 SAHAJ Eligibility in AY 2026-27 (Who can file?)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymita.com\/?p=1222\/#Why_is_ITR-1_called_%E2%80%9CSAHAJ%E2%80%9D\" >Why is ITR-1 called &#8220;SAHAJ&#8221;?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/moneymita.com\/?p=1222\/#Who_cannot_file_ITR-1_in_AY_2026-27\" >Who cannot file ITR-1 in AY 2026-27?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/moneymita.com\/?p=1222\/#Practical_Examples_on_ITR-1_Filing\" >Practical Examples on ITR-1 Filing<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/moneymita.com\/?p=1222\/#Which_Capital_GainsLosses_Cannot_Be_Reported_in_ITR-1\" >Which Capital Gains\/Losses Cannot Be Reported in ITR-1?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/moneymita.com\/?p=1222\/#Does_the_New_Tax_Regime_or_Old_Tax_Regime_Affect_ITR-1_Filing\" >Does the New Tax Regime or Old Tax Regime Affect ITR-1 Filing?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/moneymita.com\/?p=1222\/#Frequently_Asked_Questions_FAQs\" >Frequently Asked Questions (FAQs)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/moneymita.com\/?p=1222\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"ITR-1_SAHAJ_Eligibility_in_AY_2026-27_Who_can_file\"><\/span>ITR-1 SAHAJ Eligibility in AY 2026-27 (Who can file?)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p class=\"wp-block-paragraph\">An individual can file ITR-1 (Sahaj) for AY 2026-27 if all the prescribed eligibility conditions are satisfied.<\/p>\n\n<p class=\"has-vivid-red-color has-text-color has-link-color wp-elements-d2f0ec344440bcbde8205e6043cbaad8 wp-block-paragraph\">\u27a1\ufe0fBasic Conditions for Filing ITR-1<\/p>\n\n<figure class=\"wp-block-table\">\n<table class=\"has-fixed-layout\">\n<tbody>\n<tr>\n<td><strong>PARTICULARS<\/strong><\/td>\n<td><strong>ELIGIBILITY REQUIREMENT<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Taxpayer Type<\/td>\n<td>Individual.<\/td>\n<\/tr>\n<tr>\n<td>Residential Status<\/td>\n<td>Resident and Ordinary Resident. (R-OR)<\/td>\n<\/tr>\n<tr>\n<td>Total Income<\/td>\n<td>\u20b950 lakhs \/-.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<figcaption class=\"wp-element-caption\"><strong>WHO CAN FILE?<\/strong> \ud83c\udf10<a href=\"https:\/\/www.moneymita.com\" target=\"_blank\" rel=\"noreferrer noopener\" data-type=\"link\" data-id=\"https:\/\/www.moneymita.com\"><strong>MONEYMITA<\/strong><\/a><\/figcaption>\n<\/figure>\n\n<p class=\"wp-block-paragraph\">\u00a0<\/p>\n\n<p class=\"has-vivid-red-color has-text-color has-link-color wp-elements-7f6263edf40928971cb1a9b390b7d740 wp-block-paragraph\">\ud83d\udc49<em><strong>Which Incomes Are Eligible in ITR-1? <\/strong><\/em><\/p>\n\n<p class=\"wp-block-paragraph\">A taxpayer satisfying the basic conditions can report the following income in ITR-1 (Sahaj) for AY 2026-27:<\/p>\n\n<figure class=\"wp-block-table\">\n<table class=\"has-fixed-layout\">\n<tbody>\n<tr>\n<td><strong>HEADS OF INCOME<\/strong><\/td>\n<td><strong>ELIGIBLE INCOME UNDER ITR-1 SAHAJ<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Salary \/ Pension<\/td>\n<td>Salary and pension income.<\/td>\n<\/tr>\n<tr>\n<td>House Property<\/td>\n<td>Income from maximum two-house properties with allowance for setting losses up to \u20b92,00,000\/-.<\/td>\n<\/tr>\n<tr>\n<td>Capital Gains<\/td>\n<td>Long-term capital gains under Section 112A of the IT Act 1961 up to \u20b91,25,000\/- arising from listed equity shares and equity-oriented mutual funds.<\/td>\n<\/tr>\n<tr>\n<td>Other Sources<\/td>\n<td>Savings interest, term deposit and recurring deposit interest, dividend income from domestic companies, family pension and agriculture income up to \u20b95,000\/-.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<figcaption class=\"wp-element-caption\"><strong>ELIGIBLE INCOMES IN ITR-1<\/strong> \ud83c\udf10<a href=\"https:\/\/www.moneymita.com\" target=\"_blank\" rel=\"noreferrer noopener\" data-type=\"link\" data-id=\"https:\/\/www.moneymita.com\"><strong>MONEYMITA<\/strong><\/a><\/figcaption>\n<\/figure>\n\n<p class=\"wp-block-paragraph\">\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">The above list covers the income categories that can generally be reported in ITR-1. However, taxpayers should also satisfy all other conditions prescribed for ITR-1 Sahaj eligibility AY 2026-27. If any ineligible income is earned during the year, a different return form may become applicable.<\/p>\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_is_ITR-1_called_%E2%80%9CSAHAJ%E2%80%9D\"><\/span>Why is ITR-1 called &#8220;SAHAJ&#8221;?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n<p class=\"wp-block-paragraph\"><em><strong>&#8220;SAHAJ&#8221;<\/strong><\/em> is a Bengali word meaning &#8220;simple&#8221; or &#8220;easy.&#8221; ITR-1 (Sahaj) is designed for taxpayers who have straightforward sources of income such as salary, pension, eligible house property income, limited long-term capital gains under Section 112A of the IT Act 1961 and other simple income sources.<\/p>\n\n<p class=\"wp-block-paragraph\">Most of the information required for filing ITR-1 can be gathered from documents such as Form 16, bank statements and information available on the income tax portal. However, taxpayers having business income, foreign assets or complex capital gain transactions generally need to use a more detailed return form. Hence, ITR-1 is known as &#8220;Sahaj.&#8221;<\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_cannot_file_ITR-1_in_AY_2026-27\"><\/span>Who cannot file ITR-1 in AY 2026-27?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p class=\"wp-block-paragraph\">Although an individual satisfies the basic eligibility conditions, ITR-1 (Sahaj) cannot be used in certain situations.<\/p>\n\n<p class=\"has-vivid-red-color has-text-color has-link-color wp-elements-4746a428ed1d4781d6619a780db7ada0 wp-block-paragraph\"><strong><em><span style=\"text-decoration: underline;\">Basic Conditions Where ITR-1 Cannot Be Filed<\/span>:<\/em><\/strong><\/p>\n\n<p class=\"wp-block-paragraph\">A person cannot file ITR-1 if:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>He or she is a Resident but Not Ordinarily Resident (R-NOR) during FY 2025-26.<\/li>\n\n<li>He or she is a Non-Resident (NR) during FY 2025-26.<\/li>\n\n<li>Individuals governed by the Portuguese Civil Code in Goa, the Union Territories of Dadra and Nagar Haveli and Daman and Diu, where income is required to be apportioned between spouses under Section 5A of the Income-tax Act. Although such persons are individuals, they cannot file ITR-1 because the return involves special income allocation provisions.<\/li>\n\n<li>The person is not an individual, such as a HUF, firm, LLP, AOP, BOI, company or trust.<\/li>\n<\/ul>\n\n<p class=\"has-vivid-red-color has-text-color has-link-color wp-elements-a36d2b5e34318b503793cdc6c08be838 wp-block-paragraph\"><span style=\"text-decoration: underline;\"><strong><em>Incomes Not Eligible for Reporting in ITR-1<\/em><\/strong>:<\/span><\/p>\n\n<p class=\"wp-block-paragraph\">ITR-1 Sahaj cannot be filed where the total income exceeds Rupees Fifty Lakhs (\u20b950 lakhs) or where income includes any of the following:<\/p>\n\n<figure class=\"wp-block-table\">\n<table class=\"has-fixed-layout\">\n<tbody>\n<tr>\n<td><strong>HEADS OF INCOME<\/strong><\/td>\n<td><strong>INELIGIBLE INCOME<\/strong><\/td>\n<\/tr>\n<tr>\n<td>House Property<\/td>\n<td>Income from more than two house properties or cases where house property losses are required to be carried forward. Although ITR-1 allows set-off of house property loss up to \u20b92 lakh against other income, taxpayers seeking to carry forward the remaining loss should use ITR-2.<\/td>\n<\/tr>\n<tr>\n<td>Business \/ Profession<\/td>\n<td>Any profit or loss from a business or profession.<\/td>\n<\/tr>\n<tr>\n<td>Capital Gains<\/td>\n<td>Capital gains other than &#8220;eligible LTCG under Section 112A up to \u20b91.25 lakhs.&#8221;<\/td>\n<\/tr>\n<tr>\n<td>Other Sources<\/td>\n<td>1. Lottery income, betting income, horserace income and similar special-rate incomes.<br \/>2. Agriculture income exceeding \u20b95,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<figcaption class=\"wp-element-caption\"><strong>INELIGIBLE INCOME IN ITR-1<\/strong> \ud83c\udf10<strong><a href=\"https:\/\/www.moneymita.com\" target=\"_blank\" rel=\"noreferrer noopener\" data-type=\"link\" data-id=\"https:\/\/www.moneymita.com\">MONEYMITA<\/a><\/strong><\/figcaption>\n<\/figure>\n\n<p class=\"wp-block-paragraph\">\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">\u00a0<\/p>\n\n<pre class=\"wp-block-preformatted has-vivid-red-color has-text-color has-link-color wp-elements-5962d56926d9cf09edc7895b1da5e6ab\"><strong>Other Situations Where ITR-1 Cannot Be Used<\/strong><\/pre>\n\n<p class=\"wp-block-paragraph\">ITR-1 is also not available in the following cases: \u274c<\/p>\n\n<ul class=\"wp-block-list\">\n<li>The taxpayer is a director of any company.<\/li>\n\n<li>The taxpayer has held unlisted equity shares during the year.<\/li>\n\n<li>The taxpayer owns foreign assets or has a financial interest in any foreign entity.<\/li>\n\n<li>The taxpayer has signing authority in a foreign bank account.<\/li>\n\n<li>The taxpayer has income from any source outside India.<\/li>\n\n<li>Relief of tax is claimed under Sections 90, 90A or 91 of the IT Act 1961.<\/li>\n\n<li>Tax has been deducted under Section 194N of the IT Act 1961 on cash withdrawals.<\/li>\n\n<li>Tax payment or deduction on ESOP perquisites has been deferred under Sections 191(2) or 192(1C) of the IT Act 1961.<\/li>\n\n<li>Income is taxable under Section 115BBE of the IT Act 1961.<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">In short, ITR-1 (Sahaj) is meant only for taxpayers with relatively simple income and disclosure requirements. Once the income structure becomes complex, a different return form like the ITR-2, ITR-3 or ITR-4 may be required.<\/p>\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Practical_Examples_on_ITR-1_Filing\"><\/span>Practical Examples on ITR-1 Filing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-2b167103f3055faf8b3ab766a1936686 wp-block-paragraph\"><strong>Example 1: a) <\/strong>Mr. A, a Resident and Ordinarily Resident (ROR), has a salary income of \u20b96,00,000\/- during FY 2025-26. He owns two house properties, one of which is self-occupied while the other is let out at a monthly rent of \u20b915,000\/-.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>b) <\/strong>Mrs. Sima Roy, a Resident and Ordinarily Resident (ROR), owns three house properties. One property is self-occupied, while the other two are let out.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Check ITR-1 filing eligibility<\/strong> <strong>in the above two cases<\/strong>.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Ans. a)<\/strong> <strong>Yes<\/strong> &#8211; Mr. A satisfies the basic conditions for filing ITR-1. His total income is below \u20b950 lakhs, consisting of eligible heads, namely salary and income from not more than two house properties.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>b)<\/strong> <strong>No<\/strong> &#8211; ITR-1 permits income from a maximum of two house properties only. Since Mrs Sima Roy owns three house properties, she cannot file ITR-1 and should file ITR-2 instead.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Example 2:<\/strong> Mr. B is a Non-Resident (NR) during FY 2025-26 and has bank interest income of \u20b95,00,000\/-. <strong>Can he file ITR-1?<\/strong><\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Ans.<\/strong> <strong>No<\/strong> &#8211; Although the income is simple and below \u20b950 lakhs, ITR-1 is available only to Resident and Ordinarily Resident (ROR) individuals. Therefore, Mr. B must file ITR-2.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Example 3:<\/strong> Mr. Rajesh Sharma has a salary income of \u20b912,00,000\/- and Long-Term Capital Gain of \u20b91,20,000\/- from the sale of listed equity shares covered under Section 112A. He has no foreign assets, business income or any other disqualification. <strong>Can he file ITR-1?<\/strong><\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Ans.<\/strong> <strong>Yes<\/strong> &#8211; The LTCG is covered under Section 112A and is capped at \u20b91.25 lakh. Since all other eligibility conditions are satisfied, Mr. Rajesh Sharma can file ITR-1 (Sahaj) for AY 2026-27.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Example 4:<\/strong> Mr. Akash Patel has Short-Term Capital Gain (STCG) of \u20b950,000\/- and Long-Term Capital Gain (LTCG) of \u20b91,00,000\/- from the sale of listed equity shares during FY 2025-26. <strong>Can he file ITR-1?<\/strong><\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Ans<\/strong>. <strong>No<\/strong> &#8211; Although the LTCG of \u20b91,00,000 is within the permissible limit of \u20b91.25 lakh, Mr. Akash Patel also has Short-Term Capital Gain. Since ITR-1 permits only eligible LTCG under Section 112A, he must file ITR-2.<\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Which_Capital_GainsLosses_Cannot_Be_Reported_in_ITR-1\"><\/span>Which Capital Gains\/Losses Cannot Be Reported in ITR-1?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p class=\"wp-block-paragraph\">While Capital Gains in ITR-1 Sahaj AY 2026-27 are permitted in limited cases, but no allowances for setting off capital losses, taxpayers having the following capital gain\/loss transactions generally need to file ITR-2 or another applicable return form:<\/p>\n\n<ol class=\"wp-block-list\">\n<li>Any Short-Term Capital Gain \/ Loss (STCG\/ STCL) arising from the transfer of any short-term capital asset.<\/li>\n\n<li>Long-Term Capital Gain \/ Loss (LTCG\/ LTCL) under Section 112A exceeding \u20b91.25 lakh from the sale of listed equity shares or equity-oriented mutual funds.<\/li>\n\n<li>Any gain or loss short term or long tern arising from the sale of house property, land or other immovable property.<\/li>\n\n<li>Any STCG\/STCL or LTCG\/LTCL arising from the transfer of agricultural land.<\/li>\n\n<li>Any STCG\/STCL or LTCG\/LTCL arising from the transfer of unlisted shares.<\/li>\n\n<li>Long-term capital losses requiring set-off against long-term capital gains or capital losses required to be carried forward.<\/li>\n\n<li>Capital losses required to be carried forward to subsequent assessment years.<\/li>\n<\/ol>\n\n<p class=\"wp-block-paragraph\">The above list is illustrative and not exhaustive. Taxpayers having complex capital gain transactions generally need to file ITR-2 or another applicable return form instead of ITR-1 (Sahaj).<\/p>\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_the_New_Tax_Regime_or_Old_Tax_Regime_Affect_ITR-1_Filing\"><\/span>Does the New Tax Regime or Old Tax Regime Affect ITR-1 Filing?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n<p class=\"wp-block-paragraph\"><strong>NO<\/strong>-The choice between the New Tax Regime and the Old Tax Regime does not affect a taxpayer&#8217;s eligibility to file ITR-1 (Sahaj).<\/p>\n\n<p class=\"wp-block-paragraph\">Eligibility for ITR-1 depends on factors such as:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Residential Status \u2611\ufe0f<\/li>\n\n<li>Total income \u2611\ufe0f<\/li>\n\n<li>Nature of income, \u2611\ufe0f and<\/li>\n\n<li>Other prescribed conditions under Rule 12 of the Income-tax Rules 1962 \u2611\ufe0f<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">The New Tax Regime and the Old Tax Regime are different methods of tax planning available to taxpayers. The choice of tax regime affects tax computation but does not affect eligibility for filing ITR-1 (Sahaj). Therefore, a taxpayer who is otherwise eligible to file ITR-1 can generally opt for either tax regime, subject to the applicable provisions of Section 115BAC of the IT Act 1961.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Tax Regime Declaration in ITR-1:<\/strong><\/p>\n\n<p class=\"wp-block-paragraph\">While filing ITR-1, taxpayers are required to indicate whether they wish to continue under the default New Tax Regime or opt out and be taxed under the Old Tax Regime. This declaration is made in the General Information section of the return form.<\/p>\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"199\" class=\"wp-image-1223\" src=\"https:\/\/moneymita.com\/wp-content\/uploads\/2026\/05\/TAX-REGIME-DECLARATION-IN-ITR-1-AY-2026-27-1024x199.png\" alt=\"The option under Section 115BAC relates to tax computation and does not determine whether a taxpayer can file ITR-1 (Sahaj).\n\" title=\"\" srcset=\"https:\/\/moneymita.com\/wp-content\/uploads\/2026\/05\/TAX-REGIME-DECLARATION-IN-ITR-1-AY-2026-27-1024x199.png 1024w, https:\/\/moneymita.com\/wp-content\/uploads\/2026\/05\/TAX-REGIME-DECLARATION-IN-ITR-1-AY-2026-27-300x58.png 300w, https:\/\/moneymita.com\/wp-content\/uploads\/2026\/05\/TAX-REGIME-DECLARATION-IN-ITR-1-AY-2026-27-768x149.png 768w, https:\/\/moneymita.com\/wp-content\/uploads\/2026\/05\/TAX-REGIME-DECLARATION-IN-ITR-1-AY-2026-27-1536x299.png 1536w, https:\/\/moneymita.com\/wp-content\/uploads\/2026\/05\/TAX-REGIME-DECLARATION-IN-ITR-1-AY-2026-27.png 1687w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\n<figcaption class=\"wp-element-caption\"><strong>Tax Regime Declaration in ITR-1 <\/strong> \ud83c\udf10<strong><a href=\"https:\/\/www.moneymita.com\" target=\"_blank\" rel=\"noreferrer noopener\" data-type=\"link\" data-id=\"https:\/\/www.moneymita.com\">MONEYMITA<\/a> <\/strong><\/figcaption>\n<\/figure>\n\n<p class=\"wp-block-paragraph\">As shown above, the return asks:<br \/><strong><em>&#8220;Do you wish to exercise the option under Section 115BAC (6) of opting out of the New Tax Regime?&#8221;<\/em><\/strong> <strong>The option under Section 115BAC relates to tax computation and does not determine whether a taxpayer can file ITR-1 (Sahaj).<\/strong><\/p>\n\n<p class=\"wp-block-paragraph\">Selecting:<\/p>\n\n<ul class=\"wp-block-list\">\n<li><strong>&#8220;No&#8221; <\/strong>means tax will be computed under the New Tax Regime.<\/li>\n\n<li><strong>&#8220;Yes&#8221; <\/strong>means tax will be computed under the Old Tax Regime (subject to applicable provisions).<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">Therefore, the choice of tax regime and the selection of the ITR form are two separate matters. A person eligible to file ITR-1 can generally choose either tax regime, while a person not eligible for ITR-1 cannot use Sahaj merely because he or she has opted for a particular tax regime.<\/p>\n\n<p class=\"wp-block-paragraph\">For <strong><a href=\"https:\/\/www.incometax.gov.in\/iec\/foportal\/downloads\/income-tax-returns\" target=\"_blank\" rel=\"noreferrer noopener\" data-type=\"link\" data-id=\"https:\/\/www.incometax.gov.in\/iec\/foportal\/downloads\/income-tax-returns\">ITR-1 SAHAJ E-filing<\/a><\/strong> a person need to visit the Income Tax Department &#8211; Government of India, E-filing portal.<\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p class=\"wp-block-paragraph\"><strong>Q1. I made a mistake in choosing the correct ITR. What can happen to me?<\/strong><\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Ans.<\/strong> If an incorrect return form is used, the Income Tax Department may treat it as <strong><em><a href=\"https:\/\/moneymita.com\/itr-u-2025-how-defective-notices-affect-itr-u\/\" target=\"_blank\" rel=\"noreferrer noopener\" data-type=\"link\" data-id=\"https:\/\/moneymita.com\/itr-u-2025-how-defective-notices-affect-itr-u\/\">Defective Return<\/a><\/em><\/strong> and issue a notice under Section 139(9) of the Income Tax Act 1961. The taxpayer is generally required to rectify the defect within the prescribed time. Failure to comply may result in the return being treated as invalid.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Q2. Is it mandatory to declare the nature of employment in the case of salaried individuals and pensioners?<\/strong><\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Ans. Yes<\/strong> &#8211; The nature of employment must be disclosed in ITR-1 under Part A \u2013 General Information.<br \/>The taxpayer is required to select the appropriate category from the following options:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Central Government.<\/li>\n\n<li>State Government.<\/li>\n\n<li>Public Sector Undertaking (PSU).<\/li>\n\n<li>Pensioners \u2013 Central Government.<\/li>\n\n<li>Pensioners \u2013 State Government.<\/li>\n\n<li>Pensioners \u2013 Public Sector Undertaking (PSU).<\/li>\n\n<li>Pensioners \u2013 Others.<\/li>\n\n<li>Others (Private Sector).<\/li>\n\n<li>Not Applicable (Family Pension).<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\"><strong>Q3. What does Section 115BBE of the IT Act 1961 deal with?<\/strong><\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Ans. <\/strong>Section 115BBE deals with taxation of certain unexplained incomes such as unexplained cash, investments, money, expenditure or other assets referred to in Sections 68 to 69D of the Income-tax Act 1961. Since such income is subject to special tax provisions, taxpayers having income taxable under Section 115BBE cannot file ITR-1 (Sahaj).<\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p class=\"wp-block-paragraph\">Therefore, Capital Gains in ITR-1 Sahaj AY 2026-27 can be reported only in limited situations involving eligible LTCG under Section 112A up to \u20b91.25 lakhs.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The Income Tax Return (ITR) filing season for Assessment Year (AY) 2026-27 relating to the Financial Year (FY) 2025-26 has [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1310,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[32,25,24],"tags":[330,137,332,333,327,329,328,334,331,335],"class_list":["post-1222","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lawscape","category-direct-tax","category-taxation","tag-capital-gains","tag-income-tax","tag-income-tax-return-itr","tag-itr-filing","tag-itr-1","tag-itr-1-ay-2026-27","tag-itr-1-sahaj","tag-long-term-capital-gain","tag-section-112a","tag-tax-planning"],"_links":{"self":[{"href":"https:\/\/moneymita.com\/index.php?rest_route=\/wp\/v2\/posts\/1222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneymita.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymita.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymita.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymita.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1222"}],"version-history":[{"count":14,"href":"https:\/\/moneymita.com\/index.php?rest_route=\/wp\/v2\/posts\/1222\/revisions"}],"predecessor-version":[{"id":1321,"href":"https:\/\/moneymita.com\/index.php?rest_route=\/wp\/v2\/posts\/1222\/revisions\/1321"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymita.com\/index.php?rest_route=\/wp\/v2\/media\/1310"}],"wp:attachment":[{"href":"https:\/\/moneymita.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymita.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymita.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}