The Central Board of Direct Taxes has rolled out updated Income Tax Return (ITR) forms for assessment year 2026–27.
The goal is simple: make tax filing easier while improving transparency.
But there’s a catch—taxpayers now need to share more details.
New disclosures have been added for F&O trading, political donations, and even investments under the presumptive tax scheme.
Relief for Salaried Taxpayers
One of the biggest changes is in eligibility for ITR-1.
Now, individuals with two house properties can file ITR-1.
Earlier, they had to use the more complex ITR-2.
This is good news for many salaried taxpayers, as it simplifies the filing process.
However, there’s more reporting required.
Taxpayers must now mention:
Percentage of co-ownership
Tenant details (if the property is rented out)
Filing Gets Simpler—but More Detailed
The new forms aim to make filing smoother, but they also demand better accuracy.
Some key updates include:
Space to add a secondary address
A simplified capital gains section based on current tax rates
A new field to report late fees for revised returns
According to tax experts like Neeraj Agarwala, these changes are designed for better data matching.
In simple terms, the system can now easily spot mismatches.
Even small errors may trigger notices, so careful reporting is more important than ever.
Presumptive Taxpayers Face New Rules
Taxpayers filing ITR-4 under the presumptive tax scheme now have to disclose their investments.
This applies to professionals like:
Lawyers
Chartered accountants
Doctors
And businesses with turnover up to ₹2 crore or professionals earning up to ₹75 lakh.
F&O Trading: More Transparency Required
If you trade in futures and options (F&O), expect stricter reporting.
Taxpayers filing ITR-3 must now clearly show:
Turnover from F&O trades
Separate details for intraday trading
Turnover is calculated as the total of profits and losses from each trade.
This can make the reported figure look large—even if actual income is small.
Tax expert Sandeep Sehgal explains that F&O income is treated as business income and taxed as per slab rates.
The upside? Traders can:
Deduct expenses like brokerage and internet costs
Carry forward losses for up to 8 years
Political Donations Under the Scanner
Claiming tax deductions on political donations is now more detailed than before.
Under Section 137 Income Tax Act 2025, taxpayers must provide:
Name and PAN of the political party
Date of donation
Mode of payment
You’ll also need to share transaction details like UPI reference numbers or bank transfer info.
This creates a clear audit trail and reduces misuse.
Only genuine, traceable donations will qualify for tax benefits.
The Bottom Line
The new ITR forms strike a balance between simplicity and stricter compliance.
While filing may feel easier in some areas, the increased level of detail means taxpayers must be more careful than ever.
Accurate reporting is no longer optional—it’s essential to avoid scrutiny.
