Sakshi ChopraOct 2026 · on Google
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Income Tax Return (ITR) for AY 2026-27 – Key Updates
For Assessment Year 2026-27 (Financial Year 2025-26), the Income Tax Department has notified revised ITR forms 1 to 6. Major changes include: default New Tax Regime with revised slabs, split capital gains reporting (pre/post 23 July 2024), increased LTCG exemption limit to ₹1.25 lakh, and mandatory investment disclosure for presumptive taxpayers. Below are the filing deadlines:
- 31 July 2026 – ITR-1 & ITR-2 (Individuals/HUF without audit)
- 31 August 2026 – ITR-3 & ITR-4 (Business income, presumptive, no audit)
- 31 October 2026 – Tax audit cases (ITR-3, ITR-5, ITR-6)
- 30 November 2026 – Transfer pricing reports (Form 3CEB)
Choosing the wrong ITR form leads to defective return u/s 139(9). Use the detailed guides below to select the correct form.
ITR-1 (Sahaj) – Resident Individuals
Eligibility: Resident individuals (ROR) with total income up to ₹50 lakh. Income from salary/pension, one house property, other sources (interest), agricultural income up to ₹5,000, and LTCG up to ₹1,25,000 (new).
Not allowed: Business income, capital gains >₹1.25 lakh, foreign assets, directorship in a company, more than one house property.
Documents: Form 16, AIS/TIS, bank interest certs, 80C proofs, home loan statement.
ITR-2 – Individuals/HUF (No Business Income)
For those having capital gains, multiple house properties, foreign assets, or income as a partner in a firm. Mandatory if income >₹50 lakh or foreign income/assets.
- Separate schedule for split capital gains (pre/post 23 July 2024)
- Schedule VDA for crypto gains
- Disclosure of assets if income >₹1 crore
ITR-3 – Business / Profession / Freelancing
For proprietors, freelancers, consultants, F&O traders, and partners of firms. Due: 31 Aug 2026 (non-audit) / 31 Oct 2026 (audit).
- New Schedule F&O for turnover reporting
- MSME interest disallowance (Section 43B(h))
- Investment disclosure under presumptive optional
ITR-4 (Sugam) – Presumptive Taxation
For resident individuals, HUFs, firms (non-LLP) opting for sections 44AD/44ADA/44AE. Turnover ≤₹2cr (business) or ≤₹75 lakh (profession); income ≤₹50 lakh.
New AY 2026-27: Mandatory investment disclosure in financial particulars. Also LTCG up to ₹1.25 lakh allowed.
ITR-5 – Firms / LLPs / AOP / BOI
For partnership firms, LLPs, Association of Persons, Body of Individuals. Tax rate 30% + surcharge.
- Partner’s remuneration & interest (Section 40b)
- GST turnover, MSME dues disclosure
- Due date: 31 Oct 2026 (audit) / 31 Aug 2026 (non-audit)
ITR-6 – Companies (except Sec 11)
Mandatory for all companies (Private, Public, OPC). Corporate tax rates: 22% (domestic), 15% (new mfg), or 25% (turnover ≤₹400cr).
- Split capital gains reporting post‑budget changes
- CSR disclosure in Schedule BP
- MSME registration & delayed payment details
Quick Comparison – Which ITR Form Suits You?
| Form | Who can file? | Income Limit | Key Sources |
|---|---|---|---|
| ITR-1 | Resident Individuals (ROR) | ₹50 lakh | Salary, 1 house property, interest, LTCG ≤₹1.25L |
| ITR-2 | Individuals/HUF (no business) | No limit | Capital gains, multiple houses, foreign assets |
| ITR-3 | Individuals/HUF with business | No limit | Business, profession, F&O, partnership income |
| ITR-4 | Resident individuals/HUF/firm | ₹50 lakh | Presumptive income (44AD/44ADA/44AE) + LTCG |
| ITR-5 | Firms, LLPs, AOP, BOI | No limit | Business income, professional receipts |
| ITR-6 | Companies | No limit | All corporate income |
Note: Tax audit applicability changes due dates. Always check latest CBDT notifications.
Simple 5-Step ITR Filing Process
1. Gather Documents
Form 16, AIS/TIS, capital gains statement, interest certificates, investment proofs.
2. Choose Correct ITR Form
Use our eligibility guide above or take expert advice.
3. Login to e-Filing Portal
Go to incometax.gov.in → e-File → Income Tax Return.
4. Fill, Validate & Pay Tax
Enter income, claim deductions, compute tax, pay if due.
5. E-Verify Return
Use Aadhaar OTP, net banking, or EVC within 30 days.
Frequently Asked Questions (AY 2026-27)
What is the due date for ITR-1 for salaried employees?
31 July 2026. The government has not extended it for AY 2026-27 yet.
Can I file ITR-4 if I have LTCG from equity shares?
Yes, if total LTCG under Section 112A is ≤₹1.25 lakh and you have presumptive business income.
Which ITR form for freelancers with foreign clients?
ITR-3 (business income) and report foreign remittances in Schedule FSI.
Is new tax regime mandatory for AY 2026-27?
New Tax Regime is default. To opt for Old Regime, file Form 10-IEA before due date.