ITR changes from April 2026: 5 key updates for Tax Year 2026–27 explained
Apr 4, 2026
Synopsis
Starting April 1, 2026, new Income Tax Act and Rules bring significant changes for Tax Year 2026-27. Key updates include extended ITR due dates for certain taxpayers, revised timelines for updated and revised returns, and mandatory PAN quoting for more transactions. These amendments aim to streamline tax filing and compliance.
Starting April 1, 2026, the Income Tax Act, 2025 and Income Tax Rules, 2026 apply to all taxpayers. But, with these new regulations, there are also a few changes to keep in mind. It’s important to note that these changes are relevant for tax year 2026-27 which is not the same as Assessment Year (AY) 2026-27. For AY 2026-27, you must submit your income tax return (ITR) on or before July 31, 2026 (non tax audit cases) by following the Income Tax Act, 1961 and Income Tax Rules, 1962.
For tax year 2026-27, you will file your ITR on or before July 31, 2027 for salaried, pensioners, students without business income, or anyone else not subject to tax audit.
Five changes made in Income Tax Act 2025 relevant for individuals
According to Taxmann research, the Finance Bill, 2026, has introduced several important changes related to the income tax return provisions and time limit. Here is a summary of the key amendments:
1. ITR due date/deadline: The due date for filing income tax returns is extended from 31 July to 31 August for non-audit business/professional taxpayers and partners of non-audit firms. For non-business assessees, the 31st July due date continues unchanged.
2. ITR-U due date: Taxpayers can file an updated return even after receiving a reassessment notice, within the time allowed in that notice. This is allowed on payment of tax, interest, and an additional 10%, and the disclosed income will get immunity from under-reporting/misreporting penalty.
3. Revised ITR: The time limit to file a revised return is extended from 9 months to 12 months from the end of the relevant year (or before assessment). However, if the revised return is filed after 9 months, a fee of Rs. 1,000 (for income up to Rs. 5 lakh) or Rs. 5,000 (for other cases) will be payable.
4. Quoting of PAN: Section 262(10)(c) is amended to allow CBDT to mandate quoting of PAN even for non-business/non-professional transactions. This aligns the ITA 2025 with the existing provisions of the ITA, 1961. For example: buying jewellery above Rs 2 lakh amount needs PAN.
5. Loss in ITR-U: The Finance Bill 2026 proposes that an updated return will be allowed even if the original return was a loss return, provided the updated return reduces the loss amount. This change enables voluntary correction, where reduced losses result in higher taxable income.
Income Tax special forms 2026 changes:
The names of several popular income tax forms have been renumbered including Form 15G/H which is now made into a unified Form 121.
Form 16 is Form 130
Form 26AS is Form 168
Tax audit forms (3CA, 3CB, and 3CD) are now made into a single Form 26
[The Economic Times]
