income tax return
The season for filing Income Tax Returns (ITR) has started and this time many important changes have been made for taxpayers. Although the Income Tax Act, 2025 has come into force, ITR for the financial year 2025-26 (FY26) will still be filed under the Income Tax Act, 1961. This time there have been many changes in the last date for filing ITR, ITR form, F&O trading and rules for giving information, which are important to know.
New last date for filing ITR
If you are employed and file ITR-1 or ITR-2, then the last date for filing ITR is 31 July 2026.
At the same time, those filing ITR-3 and ITR-4 (whose account audit is not necessary) can now file their returns till 31 August 2026. However, experts advise that instead of waiting for the last moment, file ITR on time.
What changes have taken place in ITR form?
This time many new changes have been made in the ITR form. Now people owning up to two self-occupied houses can also fill ITR-1 or ITR-4 with certain conditions. A column for giving information about unrealized rent (rent which was to be received but was not received) has been added to the form. Apart from this, the forms have also been updated according to the new capital gains tax rules implemented in Budget 2024.
New rule for F&O and intra-day traders
If you have done futures and options (F&O) or intra-day trading in the financial year 2025-26, it is possible that you may have to file ITR-3 instead of ITR-1 or ITR-2.
However, if you opt for the presumptive taxation scheme under section 44AD and are eligible for it, you can also fill ITR-4. It is very important to choose the right ITR form, because filling the wrong form can make your return considered defective.
F&O traders will now have to provide more information
In the new ITR form, more information related to F&O, intra-day trading and buyback transactions will be sought.
Traders may now have to disclose these things:
- total turnover
- Purchase and Sale Details
- Opening and closing stock
- direct expenses
- Profit or loss shown in accounts
The aim of the government is to ensure better compliance with tax rules.
Capital gains tax reporting rules also changed
ITR forms have been updated according to the new capital gains tax system implemented in Budget 2024. New tax rates have now been included in place of the old tax rates.
If you have earned capital gain by selling shares, mutual funds or any other asset, then it will be necessary to fill the correct information as per the new rules, so that there is no problem during ITR processing.
Changes related to donations and foreign retirement accounts
If you claim tax exemption on donations made to a political party under Section 80GGC, now you will also have to disclose the name and PAN of that political party.
Additionally, resident taxpayers who have overseas retirement accounts will no longer be able to claim relief under Section 89A while filing ITR-1 or ITR-4.
Now even small mistakes can be caught
The Income Tax Department is now using technology and real-time data verification more than ever before. That is, if any information is missing in your ITR, is entered incorrectly or does not match in different documents, it will be caught quickly. Therefore, before submitting the ITR, check the complete information thoroughly, so that you do not have to face notice or any other problem later.
