ITR Filing 2026: Major changes made to tax forms this year; a single mistake could lead to a notice..

ITR Filing 2026: If you are planning to file your Income Tax Return (ITR) this year (Assessment Year 2026-27), take note. The government has introduced several major changes to the ITR forms this time. The Income Tax Department now already possesses data ranging from your bank balance to your stock market earnings. Therefore, it is crucial to understand the new guidelines before submitting the form; otherwise, you could receive a direct notice from the Income Tax Department.

Let’s look at the key changes relevant to you this year:

Changes in ITR-1
If you are a salaried employee and file ITR-1, there is good news for you in the form of two major relaxations. You can now report income (such as rent) from two houses instead of just one in ITR-1; previously, a separate form was required for this. Additionally, if you have earned Long-Term Capital Gains (LTCG) of up to ₹1.25 lakh from shares or mutual funds, you can now report this directly in this form. You will also be required to provide an extra (secondary) mobile number, email ID, and a second address in the form.

What new change has been made to the ITR-1 form this year?
Can only enter salary details
Can only enter mutual fund details
Can report income from two houses
Can only report income from one house

Changes in ITR-2
If you earn income by selling property, shares, or gold, you must now provide separate, detailed information regarding the transaction date, purchase and sale prices, and tax details. Furthermore, starting April 1, 2026, proceeds received from share buybacks by companies will be treated as ‘Capital Gains,’ and any losses incurred on these transactions must be reported separately in the form.

Changes in ITR-3
If you engage in Futures and Options, intraday, commodity, or currency trading, you must now enter the details for each of these in separate columns; they cannot be clubbed together.

Changes to ITR-4
The most significant change for those filing this form is the mandatory requirement to provide precise details regarding the balance held in their bank accounts as of March 31, 2026. Additionally, the form now allows for the reporting of income from two houses and share profits of up to ₹1.25 lakh.

Attention: Donors to Political Parties!
People often donate to political parties to save on taxes and claim a 100% tax exemption. Recently, the registrations of several such bogus parties have been cancelled. Consequently, it is now mandatory to enter the PAN of the political party to which the donation was made in the ITR form.

ITR Filing Deadline
The deadline for filing ITR remains July 31 for the salaried class. However, relief has been granted to those involved in futures and options (F&O) trading or those not subject to an audit, with their deadline extended to August 31. If you fail to file your return on time, you can file a revised return between January 2027 and March 2027 by paying a late fee. A late fee of ₹1,000 applies to those with an income below ₹5 lakh, while those earning above this amount will face a fee of ₹5,000.

Tax Department Monitoring Every Earning
Tax experts state that it is a mistake to believe the government remains unaware if you conceal any income. Banks, mutual funds, and brokers directly report details of all your earnings to the tax department. Therefore, ensure you cross-check the data with your Annual Information Statement (AIS) before submitting the form.

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