Tax Update: Tax Filing to Become Easier from April 2026: Fewer Forms and Less Hassle..
Starting April 2026, significant changes will be observed in salary slips and tax filing procedures. Under the new Income Tax Rules of 2026, provisions regarding HRA, perquisites, and the ITR format are being updated to make them simpler and more transparent in light of current circumstances.
Key Update Regarding HRA
Now, when you file your ITR, information related to your rental details—such as your landlord's PAN—will appear as pre-filled data in the form. This will reduce the hassle of repeatedly entering the same information. Additionally, the calculation of various salary-related allowances will be presented in a new, more transparent manner.
Which Cities Will Be Classified as Metro Cities?
Under the new rules, Bengaluru, Hyderabad, Pune, and Ahmedabad have also been included in the list of metro cities. They will now be categorized alongside Delhi, Mumbai, Kolkata, and Chennai. The benefit of this inclusion is that residents of these cities will be eligible to claim an HRA exemption of up to 50% of their salary (effective from the Financial Year 2026-27).
Simplified Forms and Reduced Paperwork
The government has also significantly simplified tax forms. The total number of forms has been reduced from 399 to 190, and the associated regulations have also been streamlined. The new forms are designed to facilitate auto-population of data, thereby eliminating the need to repeatedly enter the same information.
New Details to Be Furnished
Now, when claiming HRA, you will also be required to disclose your relationship with your landlord. The objective behind this measure is to enhance transparency and ensure the authenticity and validity of rental claims. Overall, these changes represent a major stride toward making tax filing simpler, more transparent, and—through the leverage of technology—more reliable.
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