The Income Tax Department notified all 7 ITR forms for Assessment Year 2026-27 on 31st March 2026 — earlier than in previous years. If you are filing for income earned between April 2025 and March 2026, this guide clarifies exactly which form applies to you, what has changed, and what the new Income Tax Act 2025 means for your filing this year.
The Income Tax Act 2025 came into force on 1 April 2026, but your returns for AY 2026-27 (income earned in FY 2025-26) are still filed under the Income Tax Act, 1961. The new Act applies to Tax Year 2026-27 onwards — meaning returns for income earned from April 2026. Do not let the confusion around "new Act" change how you approach your July 2026 filing. Same forms, same deductions, same deadlines apply for this cycle.
Which Act Governs Your Return for AY 2026-27?
India's income tax system works on a one-year offset. Income earned in Financial Year 2025-26 (April 2025 to March 2026) is assessed and filed in Assessment Year 2026-27 (April 2026 onwards). Since the income was earned while the Income Tax Act, 1961 was still the operative law, all provisions of the old Act — deductions, exemptions, section references, and ITR forms — apply to your AY 2026-27 return.
The Income Tax Act 2025 will govern returns filed for Tax Year 2026-27 (income earned from 1 April 2026), which taxpayers will file in 2027. The e-filing portal supports compliance under both Acts simultaneously.
All 7 ITR Forms for AY 2026-27 — Who Files Which Form
| ITR Form | Who Should File | Income Limit |
|---|---|---|
| ITR-1 (Sahaj) | Resident individual with salary, one or two house properties, other sources (interest), agricultural income up to ₹5,000 | Up to ₹50 lakh total income |
| ITR-2 | Individuals and HUFs with capital gains, foreign income, or more than two house properties; no business income | No limit |
| ITR-3 | Individuals and HUFs earning from a proprietary business or profession | No limit |
| ITR-4 (Sugam) | Individuals, HUFs, and firms (other than LLP) opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE | Up to ₹50 lakh |
| ITR-5 | Firms, LLPs, AOPs, BOIs, cooperative societies | No limit |
| ITR-6 | Companies registered under the Companies Act (except those claiming Section 11 exemption) | No limit |
| ITR-7 | Trusts, political parties, research institutions, and charitable entities filing under Sections 139(4A) to 139(4D) | No limit |
ITR-1 (Sahaj) now permits reporting income from up to two house properties, removing the earlier restriction of one house property. Taxpayers with a second house property who previously had to file ITR-2 may now file the simpler Sahaj form, reducing compliance burden for many salaried individuals.
Key Changes in ITR Forms for AY 2026-27
1. More Detailed VDA (Virtual Digital Asset) Disclosure
The AY 2026-27 forms require a more granular breakdown of income from Virtual Digital Assets — specifically distinguishing between different types of VDAs, dates of acquisition and transfer, and cost of acquisition. Taxpayers who traded in cryptocurrency or NFTs during FY 2025-26 must report this in the dedicated VDA schedule.
2. Disclosure of Foreign Assets and Foreign Income
The foreign asset schedule (Schedule FA) and foreign income schedule (Schedule FSI) now require more detailed reporting, reflecting tightened scrutiny on cross-border capital flows. Resident Indians with foreign bank accounts, stocks, immovable property, or other assets abroad must report all of these even if no income arose.
3. New Form 10IEA for Old Tax Regime Opt-Out (Business Taxpayers)
The new tax regime is the default for all taxpayers for FY 2025-26. Salaried individuals without business income can switch to the old regime directly in the ITR at the time of filing. However, business taxpayers and professionals wishing to opt for the old regime must file Form 10IEA before submitting the ITR, on or before the ITR due date.
4. Pre-filled AIS Data Integration
ITR forms for AY 2026-27 are heavily integrated with the Annual Information Statement (AIS). The portal auto-populates income data from AIS — including interest, dividend, capital gains, and high-value transactions — which taxpayers must verify before filing. Any discrepancies between self-reported income and AIS data are likely to trigger automatic notices.
New Tax Regime vs Old Tax Regime — Making the Right Choice
For AY 2026-27, the new tax regime continues as the default. Unless you actively opt out, your return will be processed under the new regime. Here is how the two regimes compare for FY 2025-26 (income earned April 2025 to March 2026):
| Income Slab | New Regime Tax Rate | Old Regime Tax Rate |
|---|---|---|
| Up to ₹4,00,000 | Nil | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% | 5% (up to ₹5L: nil with 87A rebate) |
| ₹8,00,001 – ₹12,00,000 | 10% | 20% |
| ₹12,00,001 – ₹16,00,000 | 15% | 30% |
| ₹16,00,001 – ₹20,00,000 | 20% | 30% |
| ₹20,00,001 – ₹24,00,000 | 25% | 30% |
| Above ₹24,00,000 | 30% | 30% |
Standard deduction: ₹75,000 under new regime; ₹50,000 under old regime (salaried).
Section 87A rebate: Up to ₹60,000 for income up to ₹12 lakh (new regime) — making income up to ₹12 lakh effectively tax-free for most salaried individuals.
The old regime remains beneficial for taxpayers with significant deductions: those claiming HRA above ₹3–4 lakh annually, home loan interest above ₹2 lakh under Section 24(b), substantial Section 80C investments at the full ₹1.5 lakh limit, and health insurance under Section 80D. For most salaried individuals with income below ₹15 lakh and limited deductions, the new regime's lower rates and higher standard deduction typically result in lower tax. Computing both scenarios before filing is the most reliable approach.
Due Dates for Filing ITR for AY 2026-27
| Category of Taxpayer | Due Date |
|---|---|
| Individuals, HUFs (salaried, no audit) | 31 July 2026 |
| Businesses with ITR-3 or ITR-4, no audit | 31 August 2026 (extended under new rules) |
| Taxpayers requiring tax audit under Section 44AB | 31 October 2026 |
| Partners of audited firms | 31 October 2026 |
| Transfer pricing cases | 30 November 2026 |
| Belated / Revised Return | 31 December 2026 (up to 31 March 2027 under extended window) |
| Updated Return (ITR-U) | Within 2 years of the end of AY |
Filing ITR after the due date but before 31 December 2026 attracts a late fee of ₹5,000 under Section 234F (₹1,000 if total income is below ₹5 lakh). Interest at 1% per month on unpaid tax applies under Section 234A from the due date until the date of filing.
How the Income Tax Act 2025 Affects Future Returns
From Tax Year 2026-27 (income earned from April 2026 onwards), the Income Tax Act 2025 governs all compliance. Key structural changes taxpayers and employers should be aware of for the next filing cycle:
- "Assessment Year" replaced by "Tax Year": The confusing two-year terminology (Previous Year and Assessment Year) is replaced by a single Tax Year that equals the financial year. Income earned in Tax Year 2026-27 (April 2026–March 2027) is filed in Tax Year 2026-27 itself.
- Form 16 renamed Form 130: The annual TDS certificate for salaried employees is now Form 130. Form 16A becomes Form 131. Employers must issue the correct form for Tax Year 2026-27 onwards.
- TDS consolidated under Sections 392–394: All 40+ TDS provisions are merged into three sections. TDS software and payroll systems must be updated before the first payment of Tax Year 2026-27.
- New Form 122 for investment declarations: Employees must submit Form 122 (replacing the earlier IT declaration) at the start of the tax year for salary TDS computation.
- HRA metro city expansion: Bengaluru, Hyderabad, Pune, and Ahmedabad added to the 50% HRA exemption category (up from 40%), joining Delhi, Mumbai, Kolkata, and Chennai.