ITR Forms for AY 2026-27: Major changes you need to know

By | April 2, 2026
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ITR Forms for AY 2026-27: Major changes you need to know

For Assessment Year (AY) 2026-27 (Financial Year 2025-26), the Income Tax Department has introduced several key structural and reporting changes to ITR forms. These updates aim to improve transparency and align with the transition toward the Income Tax Act, 2025, which fully takes effect for income earned from April 1, 2026.

1. Reporting Changes in ITR-1 & ITR-4

  • Two House Properties: Taxpayers can now report income from up to two house properties in ITR-1 (Sahaj) and ITR-4 (Sugam). Previously, these forms were restricted to income from only one property.
  • Unrealised Rent: A new mandatory field has been added to report the amount of rent that could not be realized.
  • LTCG Eligibility: Individuals with Long-Term Capital Gains (LTCG) under Section 112A up to ₹1.25 lakh can now use ITR-1 and ITR-4, provided they have no carried-forward losses.

2. Across-the-Board Form Updates (ITR-1 to ITR-7)

  • Revised Return Fee: A new field for late fees under Section 234-I has been added for revised returns filed after December 31. The fee is ₹1,000 for income up to ₹5 lakh and ₹5,000 for income above ₹5 lakh.
  • Representative Assessee: A dedicated section now requires details like Email ID and Phone number, if the return is being filed by someone else, such as a legal heir for a deceased person.
  • Contact & Address Details: Forms now include fields for secondary mobile numbers and secondary email addresses to ensure better communication from the department.

3. Enhanced Disclosures for Deductions

  • Section 80G: Claims for charitable donations now require a Transaction Reference Number (UPI, Bank Transfer ID) to link the claim to a digital payment trail.
  • Detailed HRA/Home Loans: Taxpayers may now need to provide more specific details, such as the landlord’s relationship or specific loan account numbers and sanction dates.
  • Drop-down Selection: Deductions under Sections 80C to 80U must be selected from a detailed drop-down list for better precision.

4. Important Deadlines for AY 2026-27

The filing deadlines have been staggered to provide more time for certain cases:
  • ITR-1 & ITR-2: 31st July 2026.
  • ITR-3 & ITR-4 (Non-Audit): 31st August 2026 (Extended from July).
  • Audit Cases: 31st October 2026.
  • Revised Returns: Can be filed until 31st March 2027, though a fee applies if filed after December 31, 2026.