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ITR Forms for AY 2026–27 Notified: New Disclosures That May Surprise Salaried Taxpayers

by | Apr 4, 2026 | Income Tax

Update · AY 2026–27

                  April 1, 2026                                         Income Tax · CBDT Notification                                6 min read

The Central Board of Direct Taxes (CBDT) notified all seven ITR forms for Assessment Year 2026–27 on March 30–31, 2026 — earlier than last year. While the broad structure is familiar, several key changes demand attention from salaried taxpayers, especially around stricter disclosures, HRA documentation, and expanded form eligibility.

  1. Big news

ITR-1 now covers 2 house properties

Salaried individuals no longer need to shift to ITR-2 just because they own a second property.

  1. New threshold

Small capital gains stay in ITR-1

LTCG under ₹1.25 lakh (Sec 112A) can now be reported in ITR-1 and ITR-4 — no more forced migration.

  1. Tighter scrutiny

HRA claims need more proof

Landlord PAN, relationship details, and bank-verified rent evidence are now mandatory for HRA deductions.

  1. AIS alignment

TDS codes must match exactly

The Annual Information Statement (AIS) will now reflect consolidated TDS codes — mismatches will flag your return.

★What changed, and why it matters

CBDT released the forms on time this year — a marked contrast to last year’s late April release, which cascaded into filing deadline extensions. The early notification gives taxpayers and professionals more time to prepare, but the changes are anything but minor for the salaried class.

The new Income Tax Act, 2025 also took effect from April 1, 2026. However, returns for AY 2026–27 will still be filed under the Income Tax Act, 1961, giving taxpayers one final cycle under the familiar framework before the full transition.

The key theme this year: simpler forms, tighter reporting

Experts across Deloitte, AKM Global, and leading CA firms agree — the CBDT has widened the eligibility net for simpler forms like ITR-1 and ITR-4, but simultaneously tightened what those forms demand by way of disclosure. Accuracy, data reconciliation with AIS, and PAN linkage have never been more critical.

≡Form-by-form breakdown

Form Who files Key change for AY 2026–27
ITR-1 (Sahaj) Salaried, income ≤ ₹50 lakh Now allows 2 house properties + small LTCG (≤₹1.25L)
ITR-2 Individuals/HUFs without business income Required for income >₹50L, foreign assets, or high LTCG
ITR-3 Business/profession income Filing deadline extended from July 31 to Aug 31
ITR-4 (Sugam) Presumptive scheme, income ≤₹50L Allows 2 house properties; new investment disclosure field
ITR-U Updated return filers Window extended to 48 months; additional tax up to 70%

Disclosures that may surprise salaried filers

For a category of taxpayers used to straightforward filings, these new requirements introduce meaningful complexity:

  • Stricter HRA documentation: The AIS now demands landlord’s PAN, relationship details, and bank-verified rent receipts. Generic rent receipts may not suffice.
  • Unrealised rent must be disclosed: A new mandatory field in house property income requires reporting of rent that could not be realised during the year.
  • Primary and secondary address required: Both addresses must now be furnished — a new field introduced for the first time this year.
  • Section 80C–80U deductions via drop-down: Deductions must now be selected from a detailed drop-down list, eliminating free-text entries and requiring precise categorisation.
  • Capital gains tax standardisation: LTCG on all assets is now uniformly taxed at 12.5% (without indexation) or 20% (with indexation), per Budget 2024–25 changes.
  • Political donations and foreign retirement income: These can no longer be accommodated in simpler forms — taxpayers with such income must upgrade to ITR-2.

 

⚠ Defective return risk is higher this year

Experts warn that missing disclosures or failing to reconcile figures with the AIS can result in the return being flagged as defective — even for routine salaried filers. Cross-check your Form 26AS and AIS before submitting.

Important dates at a glance

  1. March 30–31, 2026

CBDT notified all ITR forms (1–7, ITR-V, ITR-U) for AY 2026–27

  1. July 31, 2026

Due date for ITR-1 and ITR-2 (individuals and non-audit cases)

  1. August 31, 2026

Extended deadline for ITR-3 and ITR-4 (non-audit business cases)

  1. October 31, 2026

Deadline for audit cases

  1. Up to March 31, 2027

Revised returns allowed (late fee applies after December 31, 2026)

Expert advice for this filing season

Reconcile with AIS first       Pre-validate your bank account      Pick the right ITR form     Keep HRA docs ready         Don’t miss the deduction drop-downs

Tax professionals emphasise that the single most common error this year will be selecting the wrong ITR form. Using a simpler form when your income profile demands a detailed one does not just mean a defective return notice — it can trigger scrutiny and avoidable penalties.

Additionally, with analytics-driven verification becoming sharper, the department is expected to flag discrepancies even before return processing. Taxpayers below the taxable threshold may also still need to file in certain scenarios — if they have high TDS deductions, large bank deposits, significant foreign travel expenses, or high electricity consumption.