ITR-1 vs ITR-2 for FY 2025-26: the new 2026 disclosure fields that will misroute taxpayers

The Income Tax Department e-filing portal opens for FY 2025-26 (AY 2026-27) returns from May 2026, with the Section 139(1) due date of 31 July 2026 for non-audit cases. The CBDT has added four new disclosure fields to both ITR-1 (Sahaj) and ITR-2 in the FY 2025-26 release.

ITR-1 (Sahaj) remains the simplest form, available to resident individuals with total income up to 50 lakh from salary, one house property, and other sources excluding lottery and racehorses. The seven situations that disqualify a taxpayer from ITR-1 are: capital gains of any value, more than one house property, any carry-forward loss, foreign income or foreign assets, directorship in a company, holdings in unlisted equity, and TDS deductions under Section 194N.

The four new disclosure fields for FY 2025-26 are: a Virtual Digital Asset schedule covering crypto and NFT transactions; a Foreign Income Reconciliation field tying AIS-reported foreign remittances to the FA schedule; an expanded High-Value SFT Transactions field; and a Section 80GGC political donation disclosure.

KAMRIT Direct Tax desk can run a form-selection diagnostic against your AIS and prepare the ITR-1 or ITR-2 filing.