Increased tension for those filing ITR-1! If you do not follow these 3 changes then you will get income tax notice at home.

If you are employed and file your Income Tax Return (ITR) every year, then this news is very important for you. The Income Tax Department has released new ITR forms for assessment year 2026-27 (FY 2025-26). Middle class and salaried taxpayers generally ITR-1 (Sahaj) You use the same form, but this time the government has made three major changes in it, ignoring which may prove costly for you. A small mistake can make your return “defective” and lead to an income tax notice reaching your home.

Big update for share and mutual fund investors

Till now the rule was that if your income other than salary was from stock market or mutual funds (LTCG), then you had to mandatorily fill ITR-2 form. But now the government has made a big change while giving relief. You can now avail Long-Term Capital Gains (LTCG) from listed equity and equity-oriented mutual funds. Up to ₹1.25 lakh Can be shown in ITR-1 only.

However, there is also a big risk here. According to tax experts and chartered accountants, if your profits exceed this limit of ₹1.25 lakh by just one rupee and you file ITR-1 by mistake, your return may be considered technically invalid. In such a situation, the Artificial Intelligence (AI) system of the Income Tax Department will immediately catch it and you will be served a notice. So it has become more important than ever to keep accurate track of your portfolio and profits.

Those earning money from two houses also got a place

Another big change is for those who own more than one property. Earlier ITR-1 was only for those who owned only one house property (whether owned or rented out). If there were two or more properties, ITR-2 had to be filed directly. but now two house property Taxpayers having income from Rs. 25,000 to Rs. 50,000 have also been included in the scope of ITR-1.

Now you will have to give complete information about income from both the properties, interest on home loan, municipal tax and rent separately. Remember that the Income Tax Department’s system AIS (Annual Information Statement) Matches data from. If you hide information about a property and it is registered in AIS, then a notice is sure to come.

New tax rates and indexation issue

After the changes in Budget 2024-25, now the new rates of LTCG will be clearly visible in ITR-1. Now instead of 10% without indexation 12.5% and with indexation 20% Rate will be applicable. Now while filling the form, you will have to provide the exact dates of investment and sale in ‘Schedule CG’.

Even the slightest manipulation in dates or transaction information can be considered by the department as “under-reporting” i.e. concealment of earnings, which can lead to heavy fines. Now every penny of bank interest and dividend remains in the eyes of the department through “Consolidated TDS Code”, hence caution is the only precaution while filling the form.

HRA and deduction rules become more strict

Rent receipt alone is no longer enough for those claiming House Rent Allowance (HRA). Now Landlord’s PAN It has been made mandatory to give. Also, while claiming deduction, you have to select the correct category (like ELSS, PPF, SSY) from the drop-down menu instead of typing it. If you claimed deduction but failed to provide necessary information or PAN, then the chances of getting a notice will open.

Who cannot fill ITR-1?

Keep in mind, not everyone can fill ITR-1. If your annual income is more than ₹50 lakh, you are a director in a company, you hold unlisted shares, your LTCG is more than ₹1.25 lakh, or your farming income is more than ₹5,000, then you must fill ITR-2 or other detailed form.

Before filing returns, cross-check your AIS, TDS statements and brokerage reports. Any kind of “typing mistake” or difference in data can land you in legal trouble.