Filing ITR-1 This Year? Don't Miss These 5 New Disclosure Rules That Could Affect Your Income Tax Return

If you're planning to file your Income Tax Return (ITR-1) for the Assessment Year (AY) 2026-27, there are some important changes you should know before submitting your return. The Income Tax Department has updated the ITR-1 (Sahaj) Excel utility, introducing several new disclosure requirements that aim to make tax reporting more detailed and transparent.

Although ITR-1 continues to remain the simplest income tax return form for eligible taxpayers, the revised version now asks for additional information related to house property, rental income, charitable donations, and political contributions.

These changes may seem small, but failing to provide the required details could lead to mistakes, delays, or even notices from the Income Tax Department. Here's everything you need to know before filing your return.

Who Can File ITR-1 for AY 2026-27?

ITR-1, also known as Sahaj, is meant for resident individuals whose total annual income is up to ₹50 lakh. It can be used by taxpayers who earn income from:

  • Salary or pension

  • Income from up to two house properties

  • Income from other sources, such as bank interest

  • Long-term capital gains under Section 112A up to ₹1.25 lakh, subject to prescribed conditions

However, ITR-1 cannot be used by taxpayers who have:

  • Business or professional income

  • Foreign assets or foreign income

  • Capital losses that need to be carried forward

  • Income that falls outside the eligibility conditions

Such taxpayers must file the appropriate income tax return form, such as ITR-2 or another applicable form.

1. Income From Two House Properties Can Now Be Reported

One of the biggest changes introduced this year is the expansion of ITR-1's scope.

Earlier, many taxpayers who owned a second house had to switch to ITR-2 even if their tax situation was otherwise simple. Now, eligible individuals can report income from up to two house properties while continuing to file ITR-1.

The updated utility includes a dedicated section where taxpayers can enter details of both properties. This change simplifies tax filing for individuals who own two residential properties and meet all other eligibility conditions.

This update is expected to benefit many salaried employees and pensioners who own an additional home.

2. Rental Income Reporting Has Become More Detailed

If you receive rental income, be prepared to provide more information than before.

The revised ITR-1 utility now asks taxpayers to furnish additional details related to rented properties. Depending on the situation, you may need to provide:

  • Names of co-owners

  • PAN or Aadhaar details of co-owners

  • Ownership percentage of each co-owner

  • Tenant details in specified cases

The aim is to improve transparency and ensure rental income is reported accurately.

Taxpayers should keep ownership documents, rent agreements, and tenant information ready before starting the filing process.

3. More Information Required for Section 80G Donations

Many taxpayers claim deductions under Section 80G for donations made to eligible charitable institutions. This year, the reporting requirements have become stricter.

Apart from mentioning the:

  • Name of the charitable institution

  • PAN of the donee

  • Donation amount

taxpayers may also have to provide:

  • Transaction reference number for eligible electronic payments

  • Recipient bank's IFSC code, wherever applicable

These additional details are intended to improve verification of donation claims and reduce fraudulent deduction requests.

If you plan to claim deductions under Section 80G, make sure you have the donation receipt and payment details readily available.

4. Political Donations Need Expanded Disclosure

Another significant change relates to deductions claimed under Section 80GGC, which covers donations made to political parties.

Under the revised ITR-1 utility, taxpayers must now disclose additional details while claiming this deduction.

The return form now requires:

  • Name of the political party

  • Permanent Account Number (PAN) of the political party

This information helps the Income Tax Department verify deduction claims more efficiently.

If you've made any eligible political contribution during the financial year, ensure you collect all necessary documents before filing your return.

5. Overall Reporting Has Become More Comprehensive

The biggest takeaway from the revised ITR-1 utility is that the government wants more detailed reporting across multiple sections.

Whether it's:

  • House property

  • Rental income

  • Charitable donations

  • Political contributions

taxpayers are now expected to provide more supporting information than in previous years.

While the filing process remains simple for most eligible individuals, incomplete or inaccurate disclosures could increase the chances of processing delays or queries from the Income Tax Department.

Keep These Documents Ready Before Filing

To avoid last-minute problems, taxpayers should organize all important documents before starting the return filing process.

These include:

  • Form 16 from employer

  • Salary slips

  • Bank interest certificates

  • House property documents

  • Home loan interest certificate (if applicable)

  • Rent agreements

  • Tenant details

  • Co-owner information

  • Donation receipts

  • Political contribution receipts

  • Bank transaction details

Having these documents ready can make the filing process much smoother and reduce the possibility of errors.

Why These Changes Matter

The Income Tax Department is gradually moving toward a more transparent and technology-driven tax administration system.

By collecting additional information directly through ITR-1, authorities can verify claims more efficiently using digital records and reduce cases of incorrect reporting.

For honest taxpayers, these changes should not create major difficulties, provided they maintain proper documentation.

Final Thoughts

The updated ITR-1 for AY 2026-27 remains a simple return form, but it now requires greater attention to detail. Whether you're reporting income from two house properties, claiming deductions for charitable donations, or declaring rental income, accurate disclosures have become more important than ever.

Before filing your return, carefully review the new reporting requirements and keep all supporting documents handy. Spending a little extra time preparing your information can help ensure your return is filed correctly, processed faster, and free from unnecessary notices or delays.

As the Income Tax Department continues to strengthen compliance and digital verification, complete and accurate reporting is the best way to enjoy a hassle-free tax filing experience.

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