ITR Filing FY26: New disclosure requirements for traders, investors and salaried individuals | EXPLAINED

What has changed in the new ITR forms?

According to chartered accountant Abhishek Soni, CEO and Co-founder of Tax2win, the Central Board of Direct Taxes (CBDT) has revised the ITR formats to improve disclosures and reduce filing complexity for taxpayers across different income categories.

Here’s a closer look at the major updates introduced in each form:

ITR-1 (Sahaj)

• The ITR-1 form has been expanded to allow reporting of income from up to two house properties. Earlier, the form had stricter limitations on property-related income reporting.
• Taxpayers can now also disclose long-term capital gains under Section 112A up to Rs 1.25 lakh in this form.
• In addition, the department has introduced new fields for secondary address details, alternate mobile number and email ID. Another notable relief is that taxpayers holding overseas pension accounts will no longer have to provide related details while filing ITR-1.

ITR-2

• The revised ITR-2 form now seeks more detailed reporting of capital gains transactions. Separate disclosure requirements have also been added for buyback-related losses.
• Taxpayers with foreign assets or overseas income will continue to provide detailed disclosures under this form. Similar to ITR-1, additional fields for secondary contact information and address details have also been included.

ITR-3

• ITR-3 has witnessed significant changes, especially for traders and professionals.
• The form now requires separate disclosures for F&O transactions, intraday trading, commodity trades and currency trading activities. Reporting requirements for businesses and high-value transactions have also been strengthened.
• At the same time, certain auditor-related disclosure requirements have been simplified to make compliance easier.

ITR-4 (Sugam)

• The updated ITR-4 form now permits reporting of income from up to two house properties. Taxpayers can also report LTCG under Section 112A up to Rs 1.25 lakh.
• One major addition is mandatory disclosure of bank account balances as on March 31, 2026.
• Like ITR-1, overseas pension account holders are no longer required to furnish related details while filing this form.

Who should file these revised forms?

• ITR-1 (Sahaj) is meant for resident individuals earning up to Rs 50 lakh from salary, pension, house property income, interest income and eligible LTCG within prescribed limits.
• ITR-2 applies to individuals and Hindu Undivided Families (HUFs) without business income but having capital gains, foreign assets or multiple income sources.
• ITR-3 is designed for business owners, professionals and traders earning business or professional income outside presumptive taxation schemes.
• ITR-4 (Sugam) is meant for small businesses, freelancers and professionals opting for presumptive taxation under Sections 44AD, 44ADA and 44AE.

When will the revised forms apply?

• The updated ITR forms are applicable for Assessment Year 2026-27 and cover income earned during FY 2025-26.
• The CBDT officially notified these revised forms on March 31, 2026, and they will be used during the ongoing income tax return filing season.