income tax return
Taxpayers filing Income Tax Return (ITR) for the financial year 2025-26 (assessment year 2026-27) will see many important changes in the form this time. Now more information related to capital gains, share trading, bank balance and tax exemption will have to be given. The government has made these changes in accordance with the data-based investigation system of the tax department.
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 difference in information while filing the return can become a reason for notice or investigation.
According to Chartered Accountant Shreya Gupta Goyal, now one should not make the mistake of considering return filing as just a formal process. It has become more important than ever to match the information available with the tax department and the information given in the return.
What changed in ITR-1 (Sahaj)?
- Now people with income up to two houses will also be able to fill ITR-1. Earlier, ITR-2 had to be filed if there was more than one house.
- Long term capital gain up to Rs 1.25 lakh under section 112A from listed shares and equity mutual funds can be shown in ITR-1.
- New information about secondary address, mobile number and email ID will have to be provided.
- Those receiving pension from abroad will no longer have to provide information about their foreign pension account.
What’s new in ITR-2?
- More detailed information about transactions related to capital gains will have to be given.
- Losses from share buyback will have to be reported separately.
- Giving information about foreign assets, foreign bank accounts, foreign shares or income from abroad will remain mandatory as before.
- Option to provide additional contact details has been added.
Major changes in ITR-3
- Separate information will have to be given for Futures and Options (F&O), Intraday Trading, Commodity Trading and Currency Trading.
- Some reporting rules related to auditors have been simplified.
- More information related to business and large financial transactions will be sought.
- Facility to provide alternative address, mobile and email has been added.
What changed in ITR-4 (Sugam)?
- Taxpayers adopting Presumptive Taxation Scheme will now be able to show income of up to two houses in ITR-4.
- LTCG up to Rs 1.25 lakh can also be reported under Section 112A.
- It has been made mandatory to declare the balance present in the bank account till March 31, 2026.
- The obligation to provide details of foreign pension account has been abolished.
New reporting on political donations
S.K. According to Mihir Tanna, Associate Director, Patodiya LLP, many people claiming 100% tax exemption on donations made to political parties have recently received notices. Therefore, now a new column has been added in ITR to fill the PAN number of the concerned political party.
Last date for filing ITR
The last date for filing ITR for salaried employees will be 31st July. At the same time, the deadline for non-audit business matters and some trusts has been extended to August 31. Those earning income from F&O trading will also get time till August 31 to file returns as it is considered business income.
Apart from this, the period for filing revised returns has also been extended. Revised returns can be submitted between January 2027 and March 2027. For this, those with income up to Rs 5 lakh may have to pay a late fee of Rs 1,000 and those with income above Rs 5,000.
Experts say that now it would be wrong to assume that if no income is shown in the return then the tax department will not know about it. The department gets information directly from banks, mutual funds, brokers, employers and other institutions. Therefore, before submitting the return, check all the details carefully.
