ITR forms notified for AY27, experts advise assessees to scan their books more carefully
ITR forms notified for AY27, experts advise assessees to scan their books more carefully – The HinduBusinessLine
Taxpayers can begin filing for the 2026-27 fiscal year this Wednesday, following the Income-Tax Department’s notification of seven return forms and updated filing procedures.
These forms are for the Assessment Year 2026-27 (Previous Year or Fiscal Year 2025-26) and the last set under Income-Tax Act 1961. ITR-1 is meant for salaried individuals with income up to ₹50 lakh. ITR-2 can be used by individuals with capital gains. ITR-3 is used by assesses having income from business or profession. ITR-4 is for those having income up to ₹50 lakh from business and profession.
ITR-5 is for firms, LLPs, AOPs and BOIs. ITR-6 is used by companies, while ITR-7 is used by charitable trusts. Currently, the due date for filing ITR-1 and ITR-2 is July 31, while ITR-3 and ITR-4 for non-audit cases can be filed till August 31. In case of audit required, then ITR-3 and ITR-4 can be filed till October 31.
ITR-1 scope widened
According to Sandeep Sehgal, Partner – Tax at AKM Global, taxpayers will continue with the familiar assessment year-based return structure for AY2026-27, which should help contain interpretational issues and reduce compliance friction during the current filing window. Importantly, the scope for ITR-1 has been widened for AY2026-27 by permitting certain taxpayers to report income from up to two house properties, whereas earlier taxpayers with a second house property were required to migrate to ITR-2 or ITR-3.
Now widening the scope of ITR-1, “helps reduce the compliance burden for taxpayers, as they were required to disclose the income of two house properties in ITR-2 or ITR-3,” he said.
Missed returns
Vivek Jalan, Partner at Tax Connect Advisory Services, said ITRs are not filed by many persons who are otherwise eligible to file them. For example, even when the threshold limit of taxability — ₹4 lakh in the new regime and ₹2.5 lakh in the old regime is not crossed, a person has to file his ITR if others have deducted a TDS of more than ₹25,000 per annum on his PAN as a deductee, has deposits more than ₹1 crore in current accounts, his foreign travel expenditure is more than ₹2 lakh or electricity bill is more than ₹1 lakh.
“Many persons missed filing the ITRs consequently and when the Income-Tax Department received reports from others regarding the person, then these persons had to face penal action. It was noticed that even many NRIs missed filing their ITRs in India when they were liable to do so under these conditions. Now, in ITR-2, 3 and 4, the ITRs require detailed declaration,” he said.
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