Key Takeaways
- CBDT notified all seven ITR forms (ITR-1 to ITR-7) plus ITR-V and ITR-U for AY 2026-27 on March 30, 2026, with a corrigendum issued on April 10, 2026.
- ITR-1 (Sahaj) now covers up to two house properties (earlier limit was one), letting more salaried filers stay on the simpler form.
- ITR-3 and ITR-4 (non-audit) deadlines are permanently moved to August 31 from AY 2026-27 onwards, by the Finance Act 2026.
- The Updated Return (ITR-U) window is now 48 months from the end of the assessment year, after the Finance Act 2025 amendment to Section 139(8A).
- AY 2026-27 returns are governed by the Income Tax Act 1961 because they cover income earned during FY 2025-26.
The Central Board of Direct Taxes (CBDT) notified the income tax return forms for Assessment Year 2026-27 on March 30, 2026, before the start of the financial year. A follow-up corrigendum on April 10, 2026 fixed technical drafting errors and froze the final shape of the forms. If you are filing returns on income earned between April 1, 2025 and March 31, 2026, these are the forms you will use.
This is the first ITR cycle published ahead of the financial year end. The early notification gives taxpayers and software vendors more lead time, but it also means the changes are now live and ready for use on the e-filing portal.
Looking for expert help with ITR filing for AY 2026-27 with the new CBDT notified forms? The team at Tax Garden helps Indian SMEs stay compliant end-to-end: filings, notices, and advisory, all in one place.
What CBDT Actually Notified
The notification covers nine documents in total: ITR-1 (Sahaj), ITR-2, ITR-3, ITR-4 (Sugam), ITR-5, ITR-6, ITR-7, plus the verification form ITR-V and the updated return form ITR-U. Each form has been redrafted to reflect amendments from the Finance Act 2025, the Finance Act 2026, and supporting CBDT circulars.
One important clarification: although the new Income Tax Act 2025 takes effect from April 1, 2026, the forms for AY 2026-27 still follow the Income Tax Act 1961. That is because AY 2026-27 covers income earned during FY 2025-26 (April 2025 to March 2026), a period that falls under the older Act. The Income Tax Act 2025 will govern returns filed for FY 2026-27 (AY 2027-28).
The Headline Change: ITR-1 Now Covers Two House Properties
The biggest practical change for individual filers is the expansion of ITR-1 (Sahaj) eligibility.
| Item | Earlier (AY 2025-26) | New (AY 2026-27) |
|---|---|---|
| House property limit | 1 only | Up to 2 |
| Income ceiling | Rs 50 lakh | Rs 50 lakh (unchanged) |
| LTCG under Sec 112A | Up to Rs 1.25 lakh | Up to Rs 1.25 lakh (unchanged) |
If you own two residential properties, say one self-occupied and one let out to a tenant, you can now file the simpler ITR-1 instead of being pushed to ITR-2. This change moves a sizeable group of salaried homeowners onto a far shorter form. The same ceiling of Rs 50 lakh in total income still applies.
ITR-4 (Sugam) eligibility was widened on the same lines. The form now covers presumptive taxpayers with up to two house properties, retaining the Rs 50 lakh income ceiling and the small business and professional turnover thresholds under Sections 44AD, 44ADA, and 44AE.
Other Form-Level Changes
Both Primary and Secondary Mobile and Email Now Captured
The forms now include separate fields for primary and secondary contact details. Earlier, only one mobile and email per filer could be reported. This helps when the return is prepared by a tax practitioner and the assessee wants notices to also reach a personal address.
Capital Gains Schedule: Buy-Back Loss Field
ITR-2, ITR-3, ITR-5, and ITR-6 now include a dedicated row in the capital gains schedule for losses arising on share buy-backs. This implements the FY 2024-25 amendment that allows buy-back losses to be carried forward as capital losses, but only if the corresponding deemed dividend has been disclosed under "Income from Other Sources."
Capital Gains Schedule: Pre and Post July 23, 2024 Split
The capital gains schedule continues to require disclosure of whether the asset was sold before or on or after July 23, 2024. This split exists because the LTCG rate change (10% to 12.5%, indexation removed for most assets) took effect from that date during FY 2024-25, and any returns covering FY 2025-26 that include carry-forward losses from earlier transactions must still respect the cut-off.
Representative Assessee Field
The forms now include an explicit field for representative assessee details (legal heirs filing for deceased taxpayers, guardians filing for minors, etc.). The earlier free-text approach has been replaced with a structured input.
Revised Deadlines for AY 2026-27
The Finance Act 2026 permanently moved the non-audit deadline for ITR-3 and ITR-4 to August 31. This is no longer a one-time extension, it is the statutory due date going forward.
| Form | Filer Type | Due Date |
|---|---|---|
| ITR-1 | Salaried (no audit) | July 31, 2026 |
| ITR-2 | Capital gains, multiple properties (no audit) | July 31, 2026 |
| ITR-3 | Business or profession (no audit) | August 31, 2026 |
| ITR-3 | Business or profession (audit) | October 31, 2026 |
| ITR-4 | Presumptive (no audit) | August 31, 2026 |
| ITR-5 | Firms, LLPs (audit) | October 31, 2026 |
| ITR-6 | Companies (audit) | October 31, 2026 |
| ITR-7 | Trusts, political parties | October 31, 2026 |
| ITR-U | Updated return | Within 48 months of AY end |
If transfer pricing applies, the audit deadline shifts to November 30, 2026.
ITR-U: 48 Months Now, Not 24
The Finance Act 2025 amended Section 139(8A) to extend the Updated Return window from 24 months to 48 months from the end of the relevant assessment year. The change took effect on April 1, 2025 and applies to AY 2026-27 too.
Practical effect: if you forgot to report freelance income in your AY 2024-25 return, you now have until March 31, 2029 to file an ITR-U for that year. The additional tax slabs scale with how late you file:
- Within 12 months of AY end: 25% of tax + interest
- Within 24 months: 50%
- Within 36 months: 60%
- Within 48 months: 70%
For a deeper walkthrough of how to file ITR-U, see ITR-U updated return: how the new 48-month window works.
Quick Form-Selection Map
Use this map as a starting point. The exact form depends on the full income profile, not a single criterion.
- Salary or pension only, total income up to Rs 50 lakh, up to 2 house properties: ITR-1 (Sahaj)
- Salary plus capital gains, foreign assets, or more than 2 house properties: ITR-2
- Business or professional income, partner in a firm, no presumptive scheme: ITR-3
- Presumptive taxation under Section 44AD, 44ADA, or 44AE: ITR-4 (Sugam)
- Partnership firms, LLPs, AOPs, BOIs: ITR-5
- Companies (other than those claiming Section 11 exemption): ITR-6
- Trusts, political parties, research bodies, specified institutions: ITR-7
If you are unsure which form fits, our compliance team reviews your AIS, Form 26AS, and bank statements and confirms the right form before filing.
Looking for expert help with professional ITR filing services for AY 2026-27? The team at Tax Garden helps Indian SMEs stay compliant end-to-end: filings, notices, and advisory, all in one place.
What to Do Before You File
- Download Form 26AS from the TRACES portal and reconcile every TDS entry against your records.
- Pull the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) from the income tax portal. The Department now matches AIS data against your return automatically, and any mismatch can trigger a notice.
- Check your TDS certificates. The new Form 130 replaces Form 16 under the Income Tax Act 2025 framework, but Form 16 issued for FY 2025-26 (covering AY 2026-27 returns) remains valid because the period falls under the 1961 Act.
- Confirm whether you are subject to audit under Section 44AB. The August 31 deadline applies to non-audit ITR-3 and ITR-4 filers. Audit cases continue at October 31.
- Decide on the tax regime. The new regime is the default. Salaried taxpayers can choose old or new each year. Business income filers face a regime lock once they opt out of the new regime.
- Link Aadhaar with PAN. An inoperative PAN cannot file a return.
Common Mistakes Under the New Forms
- Filing ITR-1 even though the second house is owned by a co-owner not declared. Joint ownership rules still apply. If the second property is jointly held with someone who also reports it, declare it correctly to avoid double counting.
- Skipping the buy-back loss disclosure. If you sold shares in a buy-back during FY 2025-26 and want to carry the loss forward, the corresponding deemed dividend must be disclosed under "Income from Other Sources." Skipping that step disqualifies the loss claim.
- Treating the August 31 deadline as a temporary relief. Some filers still believe ITR-3 has a July 31 deadline. The Finance Act 2026 made August 31 permanent for non-audit cases. Filing on August 30 is on time, not late.
- Mixing up assessment years on the ITR-U. ITR-U for AY 2026-27 cannot be filed yet (the original return is still open). ITR-U is only available for closed assessment years where the original window has lapsed.
Let Tax Garden File Your Return
Picking the right form, reconciling AIS, and filing under the new deadlines takes attention. Tax Garden's tax compliance services cover form selection, document collection, AIS and 26AS reconciliation, regime-comparison calculations, and filing for AY 2026-27. Pricing is fixed upfront, no hourly billing.
For broader context on the new tax framework, see our ITR Filing Guide for AY 2026-27 and the Income Tax Act 2025 explainer.
Frequently Asked Questions
When were the new ITR forms for AY 2026-27 notified?
CBDT notified all seven ITR forms plus ITR-V and ITR-U on March 30, 2026, before the start of FY 2026-27. A corrigendum on April 10, 2026 corrected drafting errors. The forms are now live on the e-filing portal.
Can I file ITR-1 if I own two houses?
Yes, from AY 2026-27, ITR-1 (Sahaj) covers up to two house properties. Earlier the limit was one. Other ITR-1 conditions (total income up to Rs 50 lakh, no capital gains, no business income) continue to apply.
What is the due date for ITR-3 and ITR-4 for AY 2026-27?
August 31, 2026 for non-audit cases (permanently shifted by the Finance Act 2026). Audit cases under Section 44AB continue to file by October 31, 2026, and transfer-pricing cases by November 30, 2026.
Are AY 2026-27 ITR forms governed by the new Income Tax Act 2025?
No. AY 2026-27 covers income earned in FY 2025-26 (April 2025 to March 2026), which still falls under the Income Tax Act 1961. The Income Tax Act 2025 governs returns from FY 2026-27 (AY 2027-28) onwards.
How long do I have to file an ITR-U for AY 2026-27?
Up to March 31, 2031, which is 48 months from the end of AY 2026-27. The Finance Act 2025 doubled the ITR-U window from 24 to 48 months effective April 1, 2025. Additional tax ranges from 25% to 70% of tax plus interest based on when you file.
Sources
This guide is verified against the CBDT notifications dated March 30, 2026 and the corrigendum dated April 10, 2026, the Finance Act 2025 (Section 139(8A) amendment), the Finance Act 2026 (deadline extension for ITR-3 and ITR-4), and confirmatory coverage from BusinessToday, ClearTax, Tax2win, EZTax, and Taxmann. Always cross-check specific figures against the official notification on incometax.gov.in before filing.