Filing income tax returns for the financial year (FY) 2025-26 is set to become a more detailed exercise, with the government rolling out several modifications to ITR forms for Assessment Year (AY) 2026-27.
Taxpayers will now be required to furnish expanded information on investment gains, trading activity, bank account holdings and deduction-related claims, as authorities strengthen their data-driven approach to tax compliance and verification.
New Deadline For ITR 3, ITR 4
In a significant change to the tax filing calendar, the due date for submitting ITR-3 and ITR-4 returns in non-audit cases has been extended to Aug. 31, 2026. Previously, such returns had to be filed by July 31.
While the additional time could provide some relief to businesses, professionals and tax practitioners, specialists warn that taxpayers should not delay their preparations. With reporting obligations becoming increasingly detailed, gathering and reconciling financial information is likely to remain a time-consuming exercise.
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Changes In ITR Forms
ITR-1 (Sahaj)
Taxpayers using the simplified ITR-1 form have been given greater flexibility this year, with the form now allowing reporting of income from as many as two residential properties. Previously, individuals earning income from more than one house property were required to shift to the more detailed ITR-2 form.
Another notable change relates to long-term capital gains (LTCG) under Section 112A. Taxpayers with gains from listed equities and equity-oriented mutual funds can now disclose such income through ITR-1, provided the total LTCG remains within the prescribed threshold of Rs 1.25 lakh.
Taxpayers filing through ITR-1 will notice new sections seeking supplementary contact details. Apart from their primary information, filers must now furnish an additional address, phone number and email address as part of the return.
The updated form also simplifies compliance for overseas pension recipients. Details relating to foreign pension accounts are no longer required to be disclosed, reducing the reporting burden for taxpayers earning pension income from outside India.
ITR-2
The latest ITR-2 format places greater emphasis on transparency in capital gains reporting. Taxpayers will now be expected to furnish transaction-level information, including acquisition and sale dates, consideration received, purchase cost and the relevant tax treatment for different categories of assets.
In addition, the return form now contains a separate disclosure field for losses linked to share buyback transactions, reflecting the tax department's effort to capture such transactions more distinctly.
ALSO READ: ITR Filing 2026-27: Key Deadlines Salaried, Business And Audit Taxpayers Must Know
ITR-3
A major update to ITR-3 is the introduction of distinct reporting categories for various trading activities. Taxpayers will now need to separately declare earnings and losses arising from F&O contracts, intraday share trading, commodity dealings and foreign exchange trades.
The return form has also undergone a compliance-focused overhaul, with certain auditor disclosure requirements being simplified. The change is designed to reduce paperwork and improve filing efficiency for businesses and professionals undergoing tax audits.
ITR-4 (Sugam)
Individuals and businesses opting for the presumptive taxation scheme will benefit from greater flexibility in the latest ITR-4 form. Income generated from up to two residential properties can now be disclosed without affecting eligibility to use the simplified return.
In another key change, taxpayers filing ITR-4 are permitted to report long-term capital gains of up to Rs 1.25 lakh arising from listed shares and equity mutual funds covered by Section 112A.
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