CBDT releases ITR forms for AY 2026–27; check key changes for return filing

The government on March 30, 2026, notified the Income Tax Return (ITR) forms for Assessment Year (AY) 2026–27, enabling taxpayers to begin filing their returns ahead of the July 31, 2026 deadline. The notification covers all key forms from ITR-1 to ITR-7, along with ITR-V and ITR-U, ensuring that individuals, professionals, and businesses have clarity on compliance requirements.

Key change: ITR-1 scope expanded

A major update this year is the expanded scope of ITR-1 (Sahaj), which now allows reporting income from up to two house properties. Earlier, taxpayers with more than one house property had to shift to ITR-2 or ITR-3, which are more complex.

This change is expected to simplify filing for salaried individuals and pensioners with multiple properties, reducing compliance burden and making ITR-1 more widely applicable.

However, ITR-1 still has limitations. It cannot be used if the taxpayer has income from business or profession, significant capital gains beyond ₹1.25 lakh under Section 112A, or income from sources like lottery winnings or racehorses. It is also not applicable to company directors, individuals holding foreign assets, or those with more complex tax structures.

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ITR-2 and ITR-3

For those not eligible for ITR-1, ITR-2 is the next option. It applies to individuals and Hindu Undivided Families (HUFs) without business income but with multiple income streams such as salary, more than one house property, or capital gains within permitted limits. It is also used when income of a spouse or minor child is clubbed.

Taxpayers with business or professional income must file ITR-3, which is designed for individuals and HUFs earning from business activities, partnerships, or professional services.

ITR-4: Presumptive income scheme

ITR-4 (Sugam) is meant for individuals, HUFs, and firms (excluding LLPs) opting for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE, with income up to ₹50 lakh. It also allows limited capital gains reporting under Section 112A.

Other ITR forms explained
ITR-5: For firms, LLPs, AOPs, and BOIs
ITR-6: For companies not claiming exemption under Section 11
ITR-7: For trusts, political parties, and institutions filing under specific sections

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ITR-V and ITR-U: Verification and correction

Apart from standard forms, two additional forms play a key role in compliance.

ITR-V is the verification form used when a return is not e-verified. It must be submitted within 30 days to complete the filing process.

ITR-U (Updated Return) allows taxpayers to correct errors or report missed income within 48 months from the end of the relevant assessment year. However, additional tax is payable depending on the delay.

Filing deadline

For AY 2026–27, the due date for filing ITR for individuals and non-audit cases remains July 31, 2026.

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Takeaways

The latest ITR notification reflects a continued push toward simplifying tax filing while improving accuracy and classification of income. With the expanded scope of ITR-1 and clear segmentation of forms, taxpayers are expected to find it easier to choose the right return and comply on time.