For assessment year 2026–27, eligible taxpayers can report up to two house properties in ITR-1. That is the rule change. It is not the whole eligibility test.
The practical mistake would be to treat “two properties” as a complete answer. ITR-1 still has an income ceiling and restrictions tied to residency, income sources, capital gains, business activity, foreign assets and other circumstances. Property count is now a wider doorway; the taxpayer’s full return still decides whether the form fits.
What Notification 45 changed
CBDT Notification No. 45/2026 was dated 30 March 2026 and took effect on 31 March for AY 2026–27. The revised ITR-1 accommodates income from up to two house properties. The Income Tax Department’s FAQ confirms the change and identifies fields connected with Section 24(b) interest reporting.
The same official guidance keeps ITR-1 within its broader lane: a qualifying resident individual, total income up to ₹50 lakh, and only the categories of income the form permits. The additional property slot changes the form’s capacity; it does not remove those boundaries.
Property count and form eligibility are different tests
Consider two taxpayers who each own two homes. One has salary, interest and permitted house-property income within the ceiling. The other sold an asset, runs a business or holds a disqualifying foreign asset. The property count is identical, but the return-form question may not be.
That is the BestProp.ai reading of the change: begin with the full income profile, then ask whether the two-property schedule solves the remaining reporting need. Reversing the order encourages a form choice based on the most visible fact rather than the controlling conditions.
The Sobha One World property page is linked as separate property-reading context. It is not tax evidence and carries no filing implication.
A six-step form-fit sequence
The sequence is compact: confirm AY 2026–27; test the ₹50 lakh total-income ceiling; verify residency; list every income source; classify both properties; then scan the official exclusions. Property classification includes whether a home is self-occupied, let out or otherwise treated under the applicable rules. Interest claims need to match lender records and the relevant Section 24(b) fields.
A sale, mixed ownership, several loans, foreign holdings or business income can make the return more complex than the two-property headline suggests. The official utility and current instructions remain the final filing reference, with professional tax advice appropriate for case-specific uncertainty.
Official sources and scope
This explainer uses CBDT Notification No. 45/2026, the Income Tax Department’s ITR-1 FAQ and its ITR-4 guidance, retrieved on 22 September 2026. It explains form boundaries; it does not calculate tax or determine an individual filing position. The hero is an AI-generated conceptual visual with a cobalt-blue title area, not an official tax form or property image.