New Delhi, July 5 -- Thousands of taxpayers returning to India after working abroad may no longer be eligible to file the simplified ITR-1 (Sahaj) for Assessment Year (AY) 2026-27 if they continue to hold foreign retirement benefit accounts or other reportable overseas assets.

According to the Income Tax Department, ITR-1 cannot be used by taxpayers who own specified foreign assets, have signing authority in an account outside India or earn income from a foreign source. Such taxpayers may instead have to file ITR-2, provided they do not have income from business or profession.

The clarification is particularly relevant for individuals returning to India after overseas assignments who continue to hold retirement benefit accounts such as ...