Why ITR Filing Is Different This Year

Every year, Income Tax Return (ITR) filing season brings some changes — and AY 2026-27 (for the financial year 2025-26) is no different. In fact, this year has brought some of the most meaningful updates in recent times. From new ITR forms and revised deadlines to Budget 2026 amendments, there's a lot that taxpayers — whether salaried, self-employed, or business owners — need to be aware of before they file. Let's break it all down in simple language.

New ITR Forms for AY 2026-27: What's Changed?

The Income Tax Department released updated ITR forms for AY 2026-27 on March 31, 2026. Here are the key changes you should know about:

ITR-1 (Sahaj) and ITR-4 (Sugam) — Expanded Eligibility: More taxpayers can now use these simpler forms. If you have salaried income, one house property, and no complex investments, you likely qualify. The forms now also allow you to enter both a primary and a secondary mobile number and email address — useful in case the department needs to reach you.

ITR-2 and ITR-3 — New F&O Reporting: If you trade in Futures & Options (F&O) or do intraday trading, ITR-3 now has a separate, dedicated section for reporting these. This improves transparency and makes it easier for the department to verify your claims. Previously, many taxpayers were unsure where to report F&O income — that confusion is now resolved.

Dual Address Details: From AY 2026-27 onwards, all ITR forms allow you to furnish both a primary and secondary address. This is helpful if your permanent address and current address are different.

Important Deadlines: Don't Miss These Dates

One of the most surprising changes this year is the shift in filing deadlines for certain taxpayers. Here's what you need to know:

Salaried taxpayers (ITR-1 and ITR-4): The deadline has been moved from July 31 to June 30, 2026. Yes — you have LESS time this year if you're filing ITR-1 or ITR-4. As of June 2026, you should file immediately if you haven't already.

Taxpayers with capital gains or business income (ITR-2 and ITR-3): The deadline remains July 31, 2026.

Revised Return Deadline Extended: If you make a mistake in your original return, you can now file a revised return until March 31 of the assessment year (instead of the earlier December 31 deadline). This gives you more time to correct errors — a very taxpayer-friendly change from Budget 2026.

Key Budget 2026 Changes That Affect Your ITR

Budget 2026 brought several amendments that directly impact your tax liability and return filing:

Higher Basic Exemption Limit: The new tax regime continues to be favored by the government, with the basic exemption threshold updated. Most salaried individuals earning up to a certain threshold will pay zero tax under the new regime — check with a tax advisor to confirm what applies to your specific income.

Capital Gains Tax Simplified: The government has streamlined short-term and long-term capital gains tax rules to reduce confusion for retail investors. If you've sold stocks, mutual funds, or property in FY 2025-26, make sure you understand which category your gains fall under before filing.

Employer NPS Contribution Benefit: The deduction for employer's contribution to the National Pension System has been enhanced under the new tax regime, making it more attractive for salaried employees.

Common Mistakes to Avoid While Filing ITR 2026

Every year, the tax department rejects or sends notices for the same avoidable mistakes. Here's what to watch out for:

1. Not checking Form 26AS and AIS: The Annual Information Statement (AIS) now shows more data than ever — bank interest, dividend income, property transactions, and more. If your ITR doesn't match, you'll get a notice.

2. Missing the June 30 deadline (for ITR-1/ITR-4): A late filing fee of ₹1,000 to ₹5,000 applies, plus you lose the right to carry forward losses.

3. Wrong ITR form selection: Using ITR-1 when you should use ITR-2 (for capital gains) is a common error. The department can deem your return defective.

4. Not e-verifying your return: Filing is not complete until you e-verify. Do it immediately after uploading.

5. Ignoring F&O losses: If you made losses in F&O trading, file ITR-3 and carry them forward. Many taxpayers skip this and lose valuable tax benefits.

How Gadhia Associate Can Help You File Correctly & On Time

With new forms, changed deadlines, and Budget 2026 amendments to absorb, ITR filing in 2026 is not something to leave to the last minute — or to guess your way through. At Gadhia Associate, our team of qualified CAs handles income tax return filing for salaried individuals, business owners, NRIs, and companies across India.

We ensure your return is filed in the right form, with accurate data, on time — and if you receive any notice from the Income Tax Department, we handle that too. Contact us at careandcomply@gmail.com or visit gadhiaassociate.com to get started today. Don't wait — if you're a salaried taxpayer, your deadline is June 30, 2026!