Filing ITR-1 for AY 2026-27? These 5 new changes in the excel utility could affect your tax return

Salaried taxpayers planning to file their Income Tax Return (ITR)-1 for Assessment Year (AY) 2026-27 should take note of several important changes introduced in the latest Excel utility. According to tax advisory platform Tax Buddy, the revised utility expands the information taxpayers need to disclose, particularly for house property, rental income and deduction claims.

The changes are aimed at improving transparency and strengthening verification of claims. Here’s a look at the five key updates taxpayers should know before filing their returns.

Two house properties

One of the biggest changes highlighted by Tax Buddy is that eligible taxpayers can now report income from up to two house properties while continuing to file the simpler ITR-1 (Sahaj) form.

In the previous assessment year, taxpayers with a second house property generally had to shift to the more detailed ITR-2. The latest Excel utility now includes a dedicated “House Property (HP)” sheet, allowing details of both properties to be reported within ITR-1 itself.

This change simplifies return filing for salaried individuals who own two houses but otherwise satisfy the eligibility conditions for ITR-1.

Rental income

Tax Buddy noted that taxpayers reporting rental income will now have to furnish significantly more details than before.

The updated utility requires disclosure of co-owner details for up to seven individuals, including their names, PAN, Aadhaar numbers and percentage share in the property.

It also seeks details of up to three tenants, including their names, PAN and Aadhaar numbers wherever applicable.

Earlier, taxpayers only needed to report the deductible amount, without providing such extensive information about co-owners or tenants.

80G Donation

Another important change relates to deductions claimed under Section 80G for eligible charitable donations.

According to Tax Buddy, taxpayers must now provide additional banking information while claiming the deduction. Besides the donee’s name, PAN and donation amount, the utility requires the transaction reference number for payments made through UPI, cheque, IMPS, NEFT or RTGS.

The IFSC code of the recipient bank must also be entered. These fields were not available in the AY 2025-26 ITR-1 utility.

Political Donations

The revised utility also tightens reporting requirements for deductions claimed under Section 80GGC for contributions made to political parties.

Tax Buddy said taxpayers must now disclose both the name of the political party and its Permanent Account Number (PAN) while claiming the deduction. These fields were absent in the previous year’s utility.

The additional disclosures are expected to improve traceability and make unverifiable political donation claims more difficult.

Who can continue using ITR-1?

According to Tax Buddy, ITR-1 remains available for resident individuals with total income of up to ₹50 lakh from salary, pension, up to two house properties and other specified sources. The form also permits reporting of long-term capital gains under Section 112A of up to ₹1.25 lakh, subject to prescribed conditions.

However, taxpayers with business income, foreign assets or capital losses that need to be carried forward are not eligible to use ITR-1 and must file other applicable return forms.

Emphasis on documentation

Tax Buddy said the broader trend across all the changes is clear: the Income Tax Department is seeking a stronger documentary trail for deduction claims and income disclosures.

Whether it is rental income, charitable donations or political contributions, taxpayers are now expected to support their claims with details such as PAN, Aadhaar, IFSC codes and transaction reference numbers.

With the July 31, 2026, deadline for filing income tax returns approaching, Tax Buddy advises salaried taxpayers to gather all supporting documents—including co-owner and tenant details, donation receipts and banking records—before starting the filing process to avoid delays or errors.