Understanding who cannot file ITR-1 (Sahaj) is crucial for taxpayers aiming to avoid common pitfalls during the filing process for AY 2026-27. Many taxpayers mistakenly believe that simply having a salary means ITR-1 is the right choice. However, this assumption can lead to complications.

Common Filing Mistakes

• Capital Gains Confusion: Taxpayers often overlook capital gains when filing. If you sold shares or property and earned capital gains, you must opt for ITR-2 or ITR-3. Filing ITR-1 in such cases can trigger a notice from the tax department, as your AIS/Form 26AS will show discrepancies.
• Multiple House Properties: If you own more than one house property, ITR-1 is off the table. Many taxpayers fail to recognize that this disqualifies them, leading to unnecessary delays and potential scrutiny.
• NRI Status Misunderstanding: NRIs cannot file ITR-1 if they have income from business or profession. A common error occurs when taxpayers assume their NRI status allows for simpler filings. This can result in incorrect submissions and notices.

Eligibility Criteria Recap

Always assess your entire income profile before deciding on the filing form. If you think your situation is complex, it’s often wise to consult a tax professional to avoid any oversight that could lead to a notice or complications down the line.

Don't let assumptions about income types derail your filing experience. With the right guidance, you can navigate the nuances of the tax system effectively.

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