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

Income Tax 2025 ITR Filing
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If you’ve been filing ITR-1, ITR-2, ITR-3 or ITR-4 the same way for years, some of this year’s changes might catch you by surprise.

The Income Tax Department notified all ITR forms for Assessment Year 2026-27 on March 30–31, 2026. While most of the structure remains familiar, several important updates affect who can file which form and how certain income needs to be reported.

Here’s what’s different this year.

Changes that apply to all ITR Forms

There are four updates that apply across all forms – from ITR-1 to ITR-7:

1. Primary and secondary contact details

You’ll now see fields for both primary and secondary mobile numbers, and the same for email addresses. This helps the department to reach you even if your primary contact changes or becomes inactive.

2. Adding alternate residential address

The address structure now includes fields for both a primary and a secondary address. This is useful if you live in multiple cities or prefer correspondence sent at a different address.

3. Revised return filing fees

For AY 2026-27 onwards, the deadline to file a revised return has been extended to March 31st (previously December 31st). However, if you utilize this extra time and file between January 1st and March 31st, a filing fee will apply:

  • ₹1,000 if your total income is below ₹5 lakh.
  • ₹5,000 if your total income exceeds ₹5 lakh.

These specific fees apply for using the “extended window” (Jan–March). If you filed your original return on time (by the July/August deadline) and you choose to revise it before December 31st, you can generally still do so without these additional fees.

4. Section 80G donations require transaction reference

When claiming deductions for donations to charitable organisations under Section 80G, you now need to provide a transaction reference number. Whether you paid via UPI, bank transfer, or any other digital payment mode. This links your claimed deduction directly to the payment trail.

5. Section 80GGC donations need political party details

For donations to political parties claimed under Section 80GGC, the ITR form now requires the name of the political party and the PAN of the political party. Both fields are mandatory for the deduction to be processed.

Now, let’s look at what’s changed across individual ITR forms.

ITR-1: Filing eligibility

This is one of the most significant changes this year.

Until AY 2025–26, ITR-1 was applicable for individuals having income from one house property only.

From AY 2026–27 onwards, ITR-1 is now applicable for individuals having income from two house properties.

So, if you’re a salaried individual or pensioner with two properties, you no longer need to switch to the more detailed ITR-2. You can stay with the simpler ITR-1 (Sahaj) form.

This change helps taxpayers reduce the compliance burden in cases where they were previously required to disclose the income of two house properties in ITR-2 or ITR-3.

ITR-2: Simplified LTCG reporting under Section 112A

If you’ve sold listed equity shares or equity mutual funds this year, you’ll notice a cleaner reporting structure in ITR-2.

Earlier, for AY 2025-26 the form had two date classification columns for LTCG under Section 112A:

  • Whether shares were acquired before or after January 31, 2018, in Column 1a
  • Whether they were transferred before/on, or after July 23, 2024, in Column 1b

From AY 2026-27 onwards, There’s now a single column for the share/unit acquired. You no longer need to manually split transactions based on the July 23, 2024, cut-off.

This makes reporting much easier, especially if you have multiple transactions across different dates.

ITR-3: Tax regime selection and F&O reporting updates

There are two key changes here: one about tax regime selection and another for F&O reporting.

1. Simpler tax regime selection

The form now starts with a single question:

A19(b): Do you have income from business or profession?

  • If yes: You’ll follow the Form 10IEA process to opt for the old regime
  • If no: You can choose the old regime directly within the form; no separate filing is needed

This simplifies the process, especially for individuals with business income.

2. F&O turnover and income fields

In Part A for the Manufacturing account, Trading account, and P&L section, two new fields are added:

  • 12c: Turnover from Futures & Options Trading
  • 12d: Income from F&O Trading (transferred to P&L)

These sit alongside the existing fields 12a and 12b.

If you trade in futures and options, these new fields give you clearer places to report turnover and income separately, reducing the chance of filing errors or mismatches with broker data.

3. Same LTCG simplification as ITR-2

Just like in ITR-2, the LTCG reporting under Section 112A has been simplified. You now report in a single column for share/unit acquired, instead of tracking pre and post-July 23, 2024 dates separately.

What hasn’t changed

A few things remain the same this year:

  • Income threshold for ITR-1: Still capped at ₹50 lakh total income.
  • Tax rates and slabs: No changes to individual tax slabs from Budget 2026.
  • Form structure: The overall form layout stays consistent with last year.

If you’ve got questions about filing ITR-1, ITR-2, ITR-3 or ITR-4 for AY 2026–27, drop them below. We’ll be happy to help.

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:date: Revised ITR Filing Deadlines

One of the most important changes is staggered due dates:

  • ITR-1 & ITR-2 (salaried individuals) → 31 July 2026

  • ITR-3 & ITR-4 (business/profession, non-audit) → 31 August 2026

  • Audit cases → 31 October 2026

:backhand_index_pointing_right: Earlier, most non-audit taxpayers had a single July deadline—this change gives more time for complex returns.

2. :new_button: Updated / Revised ITR Forms (ITR-1 to ITR-7)

The government has officially notified all ITR forms (ITR-1 to ITR-7) for AY 2026–27.

What’s new:

  • Clearer eligibility criteria for each form

  • Better classification of taxpayers (salary, capital gains, business, etc.)

  • Streamlined instructions to reduce filing errors

:backhand_index_pointing_right: Example:

  • ITR-1 (Sahaj) still applies to individuals with income up to ₹50 lakh and simple income sources.

3. :counterclockwise_arrows_button: Extended Time for Revised Returns

  • Revised return deadline extended to 12 months from end of AY

  • For AY 2026–27 → last date becomes 31 March 2027

:backhand_index_pointing_right: Earlier, this window was shorter (usually 9 months).

4. :abacus: ITR-U (Updated Return) Continues

  • Taxpayers can correct mistakes or report missed income using ITR-U

  • Available up to 24 months after AY (with penalty)

:backhand_index_pointing_right: Encourages voluntary compliance and error correction.

5. :receipt: More Structured & Detailed Reporting

Across forms, the government is moving toward:

  • More detailed income disclosures

  • Better break-up of salary, deductions, and TDS

  • Improved validation checks

:backhand_index_pointing_right: Goal: reduce mismatches and speed up processing.

6. :link: Alignment with New Tax System (Transition Phase)

  • AY 2026–27 is still filed under the old Income-tax Act, 1961

  • The new Income Tax Act, 2025 applies from the next year (FY 2026–27)

:backhand_index_pointing_right: So this year is a transition phase, with gradual form updates.

7. :globe_with_meridians: Improved E-Filing Experience

The Income Tax portal has been revamped with:

  • Easier navigation

  • Integrated services (e-pay tax, verification, etc.)

  • Updated ITR utilities

8. :balance_scale: No Change in Tax Slabs

  • Tax slabs remain unchanged for FY 2025–26

  • New regime continues as default

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