Key Changes in ITR Forms for AY 2026-27 Taxpayers Should Know
The CBDT has notified revised Income Tax Return (ITR) forms for Assessment Year (AY) 2026- 27 with changes affecting salaried individuals, small businesses, professionals and firms. The revised forms introduce additional disclosure requirements while relaxing certain filing conditions for taxpayers using simplified return forms.
ITR-1 and ITR-4: Reporting of Two House Properties
Among the major changes, ITR-1 and ITR-4 now allow reporting of up to two house properties. Earlier, taxpayers with more than one house property often had to move out of the simpler return forms and file more detailed returns.
This will benefit salaried individuals, pensioners and small taxpayers who own a second residential property. Many taxpayers who previously had to move to detailed return forms may now be able to continue using the simplified filing structure.
Additional Taxpayer Details and Compliance Reporting
Several revised forms ask for additional taxpayer details such as secondary address information, additional mobile numbers and email IDs. The expanded fields indicate greater focus on maintaining detailed taxpayer records and taxpayer tracking within the filing system.
Additional reporting requirements have been introduced in cases involving revised returns, belated returns and returns filed in response to notices issued under the Income Tax Act. In certain situations, taxpayers may now have to furnish receipt numbers, filing references and Document Identification Numbers (DIN).
Unrealised Rent Disclosure Under House Property
New disclosure fields have been introduced under the “Income from House Property” section for unrealised rent and arrears/unrealised rent received during the year. These fields relate to rent that could not be recovered from tenants and rent received later after remaining unpaid in earlier years. Taxpayers reporting rental income may need to maintain clearer records relating to pending rent recoveries and tenant-related documentation.
ITR-4: Additional Financial Particulars Under Presumptive Taxation
Another major change appears in ITR-4 filed under presumptive taxation schemes covered by Sections 44AD and 44ADA. The revised form now seeks additional “financial particulars of the business”, including details relating to investments, bank balance, cash balance, sundry debtors, sundry creditors and stock-in-trade.
These additional financial disclosures mark a departure from earlier versions of the presumptive taxation form, which required comparatively fewer business particulars.
Political Donation Disclosure Under Section 80GGC
The revised forms require additional details for deductions claimed under Section 80GGC relating to political donations. Taxpayers claiming such deductions may now have to furnish details including the name of the political party, PAN and transaction reference details.
ITR-3 and ITR-5: Business Income and F&O Reporting
ITR-3 and ITR-5 continue to require detailed reporting of business income, GST turnover, partnership income and other business particulars. These disclosures are relevant for taxpayers involved in Futures and Options (F&O) trading, where income is generally treated as business income and reported through ITR-3.
ITR-U: Expanded Updated Return Reporting
The updated return framework under ITR-U has been expanded. The revised form specifically includes reporting categories relating to incorrect income reporting, wrong selection of income heads, incorrect tax-rate application and reduction of carried-forward losses. The expanded categories indicate closer scrutiny of post-filing corrections and revised disclosures.
For many small businesses and professionals, the revised forms may mean additional disclosures and record keeping even under presumptive taxation schemes, which were earlier seen as a simpler filing option.
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