CBDT Makes Reporting of Bank Balances Mandatory in ITR-4 for AY 2026-27 [Read Notification]

The Ministry of Finance, through the Central Board of Direct Taxes (CBDT), has notified new Income Tax Return (ITR) forms for Assessment Year (AY) 2026-27. The changes were announced through Notification No. 45/2026 dated March 30, 2026, under the Income-tax (Second Amendment) Rules, 2026.

One important change in the new ITR-4 form is that taxpayers will now have to report their “Balance with banks” in the return form. This disclosure has been added in the financial particulars section of ITR-4.

ITR-4 or Sugam is filed by small taxpayers who opt for presumptive taxation scheme under Sections 44AD, 44ADA and 44AE of the Income-tax Act. It is generally used by small business owners, professionals and transport operators having income up to Rs. 50 lakh.

Earlier also, taxpayers were required to disclose details of their bank accounts like:

• Bank account number
• IFSC code
• Name of bank
• Type of account

But now, CBDT has gone one step ahead and asked taxpayers to disclose the actual bank balance also as part of business financial details.

The revised ITR-4 form contains a detailed “Financial Particulars of the Business” section. In this section, taxpayers have to provide details such as:

• Capital
• Secured and unsecured loans
• Sundry creditors
• Inventory
• Cash-in-hand
• Balance with banks

The new “Balance with banks” disclosure has been added under Field E21 of the revised ITR-4 form.

This move may help the Income Tax Department in better verification of income declared under presumptive taxation scheme. Taxpayers under presumptive taxation are not required to maintain detailed books of accounts, so the additional disclosure may improve transparency.

The notification also introduced some other changes in ITR forms for AY 2026-27. CBDT has now allowed reporting of up to two house properties in ITR-1 and ITR-4. Additional disclosures related to old tax regime and new tax regime have also been added in the forms.

The amended rules will come into effect from March 31, 2026 and will apply for income tax returns filed for AY 2026-27.

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