Taxpayers filing their Income Tax Return (ITR) for the financial year 2025-26 (assessment year 2026-27) will see several important changes in the form. More information related to capital gains, share trading, bank balance and tax exemptions will now have to be provided. The government has made these changes in line with the tax department’s data-driven verification system.
According to tax experts, the government is now matching data from Annual Information Statement (AIS), TDS records, brokerage reports and other sources. In such a situation, even a small mistake or discrepancy in information while filing the return can lead to a notice or an audit. According to chartered accountant Shreya Gupta Goyal, return filing should no longer be considered a mere formality. It has become more important than ever to match the information available with the tax department and the information provided in the return.
What has changed in ITR-1?
- Now, people with income up to two households can also file ITR-1. Earlier, people with more than one household had to file ITR-2.
- Long-term capital gains up to Rs 1.25 lakh from listed shares and equity mutual funds can be shown in ITR-1 as per section 112A.
- New information will be required regarding secondary address, mobile number and email ID.
- People receiving pension from abroad will no longer have to provide information about their foreign pension accounts.
What is new in ITR-2?
- More detailed information will be required for transactions related to capital gains.
- Losses from share buyback will have to be reported separately.
- Disclosure of foreign assets, foreign bank accounts, foreign shares or income from foreign sources will remain mandatory as before.
- Option to provide additional contact details has been added.
What has changed in ITR-3?
- Separate information will be required for Futures and Options (F&O), Intraday Trading, Commodity Trading and Currency Trading.
- Some reporting rules related to auditors have been simplified.
- More information will have to be provided for businesses and large financial transactions
- Ability to provide an alternate address, mobile number and email address has been added.
What has changed in ITR-4?
- Taxpayers opting for preemptive taxation scheme can now report income up to two households in ITR-4.
- LTCG up to Rs 1.25 lakh can also be reported under Section 112A.
- Bank account balance has been made mandatory by March 31, 2026.
- The requirement to provide details of foreign pension accounts has been removed.
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New reporting on political donations:
According to Mihir Tanna, Associate Director, S.K. Patodia LLP, many people claiming 100% tax exemption on donations made to political parties have recently received notices. Therefore, a new column has now been added in the ITR to fill in the PAN number of the political party concerned.
Last date for filing ITR:
The last date for filing ITR for salaried employees is July 31. However, the last date has been extended to August 31 for unaudited business entities and some trusts. People earning income from futures and options (F&O) trading can also file their returns till August 31, as it is considered as business income.
In addition, the last date for filing revised returns has been extended. Revised returns can be filed between January 2027 and March 2027. For this, those earning up to Rs 5 lakh may have to pay a late fee of Rs 1,000 for late filing of returns and those earning more than Rs 5 lakh may have to pay a late fee of Rs 5000.
Experts say that if the income is not declared in the return, then it would be wrong to assume that the tax department does not see any income. The department receives information directly from banks, mutual funds, brokers, employers and other institutions. Therefore, it is important to check all the details carefully before filing your return.
