The Central Board of Direct Taxes (CBDT) has officially notified ITR Forms 1 to 7 for Assessment Year 2026-27 (relating to FY 2025-26). In a proactive move, the forms have been released well in advance to avoid the technical bottlenecks and deadline extensions witnessed last year.

As we transition into the new filing season, several landmark changes—driven by the Finance Act 2026—have been integrated. Below is a professional analysis of the key modifications.

1. Major Shifts in Business & Trading Disclosures

F&O Trading: Specific Reporting Required

• Applicability: ITR 3, 5, and 6

• The Change: “Schedule Part A—Trading Account” now features dedicated columns for Futures & Options (F&O). Taxpayers must specifically report F&O turnover and the resulting income credited to the P&L account. This move aims to streamline the audit of high-volume derivative trading.

MSME Interest Disallowance [U/s 43B(h)]

• Applicability: ITR 3, 5, and 6

• The Change: To enforce the MSMED Act, a new reporting column in “Part A – OI” (Other Information) requires disclosure of disallowed interest.

  • Crucial Rule: Payments to MSEs beyond 45 days (with agreement) or 15 days (without) are disallowed on an accrual basis.

  • Section 23 Impact: Compound interest paid for delayed MSME payments is non-deductible and must now be explicitly reported.

Partnership Firm Remuneration & Interest

• Applicability: ITR 3, 5, and 6

• The Change: Schedule IF now requires partners to disclose the specific amounts of interest and remuneration due or received from the firm, ensuring parity between the firm’s Quest and the individual’s return.

2. Changes for Individual & Salaried Taxpayers

Revised Returns: New Filing Window & Fees

• Applicability: All ITRs

• The Change: The Finance Act 2026 extended the revised return window to 12 months from the end of the tax year. However, this comes with a cost. A new column for Section 234-I fees has been added:

  • ₹1,000: If Total Income Rs ₹5 Lakh.

  • ₹5,000: In all other cases.

The “31st August” Due Date

• Applicability: ITR 3

• The Change: For non-audit cases (individuals/partners), the traditional July 31st deadline is now August 31st. The “Part A – General” section has been updated to reflect this statutory extension.

Secondary Contact & Address Fields

• Applicability: All ITRs

• The Change: Taxpayers must now provide a Secondary Address in addition to the primary one. Mobile and Email fields are also now categorized as “Primary” and “Secondary” to ensure better communication reach by the Department.

3. Deductions & Exemptions (Schedule 80G & 80GGC)

Political Contributions (80GGC)

Taxpayers claiming deductions for political donations must now furnish the Name and PAN of the Political Party. This replaces the simpler “date and mode” requirements of previous years.

Charitable Donations (80G)

To tighten the audit trail, Schedule 80G now mandates:

1. Transaction Reference Number (for UPI, NEFT, RTGS, or Cheque).

2. IFSC Code of the donor’s bank.

4. Specialized Reporting: Trusts & Non-Residents

Charitable Trusts (ITR 7) Upgrades

• Investment Valuation: Schedule J now requires the “Total Value” of investments instead of “Nominal Value” to monitor substantial interest holders under Section 13(3).

• Substantial Contributors: The threshold for reporting contributors has been rationalized:

  • ₹1 Lakh during the year, OR

  • ₹10 Lakhs in aggregate (cumulative).

• Registration Validity: Trusts must now disclose the expiry date of registrations held under other laws (e.g., FCRA, SEBI, DARPAN).

Non-Resident Presumptive Schemes

• Section 44BBD: A new presumptive scheme for non-residents in electronics manufacturing (deeming 25% of receipts as income) is now integrated into Schedule BP.

• Concessional Interest: A specific column in Schedule OS is introduced for interest taxable at a 9% rate (U/s 194LC) for long-term bonds listed in IFSC.

5. Rationalization & Removals