Turnover from F&O trading & intraday trades to be separately shown
ITR Forms for AY 2026-27: New Disclosure Rules for F&O, Political Donations, and Relief for Multi-Property Owners
The Central Board of Direct Taxes has introduced several changes in the Income Tax Return (ITR) forms for assessment year 2026-27, aimed at improving compliance and ease of filing. The forms now have additional disclosure requirements for F&O trading, political donations and presumptive taxpayers will have to disclose their investments.
One of the main changes in the newly introduced ITR forms is the eligibility criteria for ITR-1. It now includes two house properties, which will bring relief to many salaried taxpayers who would otherwise have had to shift to more complex forms.
Until now, taxpayers with two house properties had to file the more detailed ITR-2. Reporting requirements in Schedule House Property is also expanded in the new ITR-1 to include percentage of co-ownership and details of tenants in case of let-out property.
Simplified process
The new ITR forms have additional sections in the personal information schedule for secondary address details. The schedule for capital gains has been simplified to reflect the rates applicable to the relevant assessment year. A separate field has been added in forms for fee payments for delayed filings of revised return.
Neeraj Agarwala, senior partner, Nangia & Co LLP, says the new forms are clearly aligned with data triangulation, meaning inconsistencies are easier to detect algorithmically. “With more field-level granularity, mismatches can flag scrutiny. Careful reporting reduces the risk of automated notices, or defective returns,” he says.
Taxpayers filing ITR-4 for the presumptive tax scheme will have to disclose their investments. Professionals such as lawyers, chartered accountants, doctors file ITR-4. It applies to businesses with turnover of up to `2 crore and professionals with gross receipts of up to Rs 75 lakh.
Disclosures on F&O trading
Taxpayers engaged in such trading typically filing ITR-3 are required to separately disclose turnover from F&O and intraday trades in the “Part A-Trading Account” using specified business codes. Turnover is computed as the aggregate of absolute profits and losses from each trade, which can result in a high reported figure even when net income is relatively low.
Sandeep Sehgal, partner-Tax, AKM Global, says, F&O income is treated as non-speculative business and is taxed at slab rates. “Traders can deduct eligible expenses such as brokerage, internet and advisory costs, while losses can be set off against any other head of income (except salary) and can be carried forward for up to eight assessment years, subject to timely filing of return,” he says.
Donations to political parties
For political donations, taxpayers claiming deductions under Section 137 Income Tax Act,2025 (80GGC of erstwhile Act) must now provide detailed information in their ITRs, including the name and PAN of the political party or electoral trust, date of donation, and mode of payment. The updated forms also require transaction-level details such as UPI reference numbers or bank transfer details (NEFT/RTGS/IMPS) along with the IFSC code, creating a clear audit trail for every contribution.
The tighter reporting framework is expected to curb misuse while ensuring that only genuine, traceable donations receive tax relief.
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