CA Sansaar
New ITR Forms Announced with Key Changes for Taxpayers
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The government has officially released the Income Tax Return (ITR) forms for the Assessment Year 2026–27, covering all categories from ITR-1 to ITR-7, along with ITR-V and ITR-U. These forms cater to a wide range of taxpayers, including salaried individuals, businesses, and trusts. Filing for AY 2026–27 will commence once the Income Tax Department activates both online and offline filing utilities.
One of the notable updates this year is the relaxation in ITR-1 (Sahaj). Taxpayers can now declare income from up to two house properties under this form. Earlier, individuals owning more than one property had to switch to more detailed forms like ITR-2 or ITR-3. This change is expected to simplify the return filing process, especially for salaried individuals and pensioners, by reducing compliance requirements.
However, ITR-1 still comes with certain limitations. It is not applicable to individuals earning income from business or profession, having capital gains exceeding ₹1.25 lakh under Section 112A, or earning from sources such as lottery or horse racing. It also excludes directors of companies, individuals with foreign assets, and those with complex financial arrangements.
Taxpayers who are not eligible for ITR-1 can use ITR-2 if they do not have business income but earn from sources like salary, multiple house properties, or capital gains within specified limits. It is also suitable where income is clubbed with that of a spouse or minor. On the other hand, ITR-3 is meant for individuals and HUFs earning income from business or professional activities, including partnerships.
ITR-4 (Sugam) is designed for taxpayers opting for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE, with income up to ₹50 lakh. It also allows limited reporting of capital gains under Section 112A, making it a convenient option for small taxpayers.
Other forms serve specific categories: ITR-5 is applicable to firms, LLPs, AOPs, and BOIs; ITR-6 is meant for companies not claiming exemption under Section 11; and ITR-7 applies to trusts, political parties, and certain specified entities.
Additionally, ITR-V is used for verification of returns where e-verification is not completed and must be submitted within 30 days. ITR-U enables taxpayers to update or correct their returns within 48 months from the end of the relevant assessment year, subject to additional tax based on the delay.
The due date for filing ITR for AY 2026–27 (FY 2025–26) continues to be July 31.
One of the notable updates this year is the relaxation in ITR-1 (Sahaj). Taxpayers can now declare income from up to two house properties under this form. Earlier, individuals owning more than one property had to switch to more detailed forms like ITR-2 or ITR-3. This change is expected to simplify the return filing process, especially for salaried individuals and pensioners, by reducing compliance requirements.
However, ITR-1 still comes with certain limitations. It is not applicable to individuals earning income from business or profession, having capital gains exceeding ₹1.25 lakh under Section 112A, or earning from sources such as lottery or horse racing. It also excludes directors of companies, individuals with foreign assets, and those with complex financial arrangements.
Taxpayers who are not eligible for ITR-1 can use ITR-2 if they do not have business income but earn from sources like salary, multiple house properties, or capital gains within specified limits. It is also suitable where income is clubbed with that of a spouse or minor. On the other hand, ITR-3 is meant for individuals and HUFs earning income from business or professional activities, including partnerships.
ITR-4 (Sugam) is designed for taxpayers opting for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE, with income up to ₹50 lakh. It also allows limited reporting of capital gains under Section 112A, making it a convenient option for small taxpayers.
Other forms serve specific categories: ITR-5 is applicable to firms, LLPs, AOPs, and BOIs; ITR-6 is meant for companies not claiming exemption under Section 11; and ITR-7 applies to trusts, political parties, and certain specified entities.
Additionally, ITR-V is used for verification of returns where e-verification is not completed and must be submitted within 30 days. ITR-U enables taxpayers to update or correct their returns within 48 months from the end of the relevant assessment year, subject to additional tax based on the delay.
The due date for filing ITR for AY 2026–27 (FY 2025–26) continues to be July 31.
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