Key Takeaways
- CBDT notified nine return documents on 30 March 2026. They are ITR-1 to ITR-7, ITR-V and ITR-U, and they still follow the Income Tax Act, 1961.
- ITR-1 and ITR-4 now accept up to two house properties. A second house no longer pushes a salaried taxpayer to ITR-2 if total income stays within ₹50 lakh.
- Buy-back loss has its own row in the capital gains schedules of ITR-2, ITR-3, ITR-5 and ITR-6, and it must match the deemed dividend in the AIS.
- The new tax regime is the default. Income up to ₹12 lakh is tax-free after the Section 87A rebate, and salaried taxpayers get a ₹75,000 standard deduction.
- ITR-B is not an annual return. It is filed only after a search or requisition, and ITR-BN applies to searches from 1 April 2026.
- A belated return can be filed until 31 December 2026 with a late fee under Section 234F and interest under Section 234A.
This guide from N D Savla & Associates, Chartered Accountants in Mumbai, explains the new ITR forms FY 2025-26, the slab rates, the due dates and the separate return form for search cases. Whether you are a salaried employee, a professional, a partner or a trustee, ITR filing for FY 2025-26 goes smoothly only when the form, the tax regime and the supporting data agree before you submit.
The FormsWhat Are the New ITR Forms for AY 2026-27 and When Did CBDT Notify Them?
The new ITR forms for AY 2026-27 are nine return documents that CBDT notified on 30 March 2026: ITR-1 to ITR-7, the verification form ITR-V and the updated return form ITR-U. They apply to income earned between 1 April 2025 and 31 March 2026. The Income-tax Act, 2025 takes effect only from 1 April 2026 and governs FY 2026-27 onwards, so these forms still follow the Income Tax Act, 1961.
ITR-1 and ITR-4 are the short forms for resident individuals with modest income, ITR-2 and ITR-3 serve individuals and HUFs with wider income, and ITR-5, ITR-6 and ITR-7 serve firms, companies and trusts. The Department pre-fills much of each form from the Annual Information Statement (AIS), so accuracy depends more on reconciliation than on typing.
Note. The Income-tax Act, 2025 replaces the 1961 Act from 1 April 2026 and uses the term "tax year" instead of financial year and assessment year. The new ITR forms FY 2025-26 are still filed for AY 2026-27 under the 1961 Act, so cite sections of the 1961 Act when you reply to notices on these returns.
Which ITR Form to File for AY 2026-27 Based on Your Income?
Your sources of income and your status decide the form. The table below answers which ITR form to file for AY 2026-27 for each taxpayer group, and the ITR-1 two house properties relaxation keeps more salaried taxpayers on the short form.
| Form | Who files it | Key conditions |
|---|---|---|
| ITR-1 (Sahaj) | Resident individuals with salary, pension, up to two house properties and other sources | Total income up to ₹50 lakh; LTCG under Section 112A up to ₹1.25 lakh; no business income; not a director |
| ITR-2 | Individuals and HUFs without business or professional income | Capital gains above ₹1.25 lakh, foreign assets, director, unlisted shares or income above ₹50 lakh |
| ITR-3 | Individuals and HUFs with business or professional income, including partners | Books of account, balance sheet and profit and loss account |
| ITR-4 (Sugam) | Resident individuals, HUFs and firms (other than LLPs) under presumptive taxation | Sections 44AD, 44ADA or 44AE; total income up to ₹50 lakh |
| ITR-5 | Firms, LLPs, AOPs and BOIs | Entities other than individuals, HUFs, companies and trusts |
| ITR-6 | Companies | Companies not claiming exemption under Section 11 |
| ITR-7 | Trusts, institutions, political parties and similar persons | Returns under Sections 139(4A) to 139(4D) |
Confirm the exact eligibility on the e-filing portal before you file, because a single disqualifying detail can change the form.
The choice of ITR-3 vs ITR-4 causes the most confusion. Choose ITR-4 only when you opt for presumptive taxation and your total income stays within ₹50 lakh. Choose ITR-3 when you maintain books, claim actual expenses or carry forward business losses. A consultant who declares 50% of receipts under Section 44ADA files ITR-4, while a consultant who keeps full books files ITR-3. Our business tax filing service reviews your income mix and picks the right form before any data is entered. For a step-by-step method that covers directors, NRIs and partners, read our ITR form selector guide for AY 2026-27.
Trusts and institutions file ITR-7, and the return usually follows an audit of accounts. Trustees who need the audit report in time can look at our trust audit services.
What ChangedWhat Has Changed in the New ITR Forms for FY 2025-26?
Two changes stand out in the new ITR forms FY 2025-26: wider house property reporting in ITR-1 and ITR-4, and a buy-back loss row in four capital gains schedules.
How Does ITR-1 Handle Two House Properties?
ITR-1 two house properties is the headline relaxation. Earlier, owning a second house pushed a salaried taxpayer to ITR-2. For AY 2026-27, ITR-1 accepts income from up to two house properties, such as one self-occupied home and one let-out flat, as long as total income stays within ₹50 lakh and no other disqualifier applies. ITR-4 gives the same relief to presumptive taxpayers.
How Is Buy-Back Loss Reported in the ITR Forms for AY 2026-27?
Buy-back loss in ITR is reported in a dedicated row of the capital gains schedule in ITR-2, ITR-3, ITR-5 and ITR-6. For buy-backs on or after 1 October 2024, the full amount received from the company is taxed as deemed dividend in the shareholder's hands, and the cost of the surrendered shares becomes a capital loss. Report the dividend under Income from Other Sources and the loss in the capital gains schedule, so that both entries match the AIS. Treat a buy-back loss in ITR like any other capital loss, which sets off only against capital gains.
The schedule also continues the split between sales before and on or after 23 July 2024. For listed equity sold in FY 2025-26, short-term gains are taxed at 20% under Section 111A and long-term gains at 12.5% above the ₹1.25 lakh exemption under Section 112A.
Tax SlabsWhat Are the New Tax Regime Slabs for FY 2025-26 (AY 2026-27)?
The new tax regime slabs FY 2025-26 run from nil tax up to ₹4 lakh to 30% above ₹24 lakh, and this regime is the default for individuals and HUFs. The slabs are as follows.
| Total income | Tax rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
A resident individual under this regime gets a rebate of up to ₹60,000 under Section 87A, which makes total income up to ₹12 lakh tax-free. The rebate does not apply to tax on capital gains taxed at special rates. Salaried taxpayers also receive a standard deduction of ₹75,000, so salary up to ₹12.75 lakh is effectively tax-free.
The old regime keeps its slabs for individuals below 60 years: nil up to ₹2.5 lakh, 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above that. It allows a standard deduction of ₹50,000, a rebate of ₹12,500 for income up to ₹5 lakh and deductions such as Sections 80C and 80D. Salaried taxpayers choose the regime while filing. Taxpayers with business or professional income must file Form 10-IEA on or before the due date to opt out of the new regime, so compare both regimes before that date.
Search CasesWhat Is ITR-B Form and Who Must File It?
What is ITR-B form? ITR-B is the return of income for block assessment, filed by a person on whom a search under Section 132 or a requisition under Section 132A has been carried out. It is not an annual return, and it does not replace ITR-1 to ITR-7 for AY 2026-27. CBDT notified it as Rule 12AE through the Income-tax (Tenth Amendment) Rules, 2025 (Notification No. 30/2025, dated 7 April 2025), after Chapter XIV-B, covering Sections 158B to 158BI, returned to the 1961 Act for searches and requisitions on or after 1 September 2024.
ITR-B reports undisclosed income for the block period, which is the six years before the year of the search plus the part of the current year up to the last authorisation. The return is filed under Section 158BC within the period the assessing officer fixes in the notice. Undisclosed income is taxed at 60% under Section 113. Companies, political parties and persons whose accounts require audit under Section 44AB must sign with a digital signature.
The ITR-BN form handles the newer cases. Searches initiated under Section 247 or requisitions made under Section 248 of the Income-tax Act, 2025 on or after 1 April 2026 use ITR-BN, which CBDT inserted as Appendix IV to the Income-tax Rules, 2026 through Notification No. 97/2026 on 24 July 2026. In practice, ITR-B covers searches between 1 September 2024 and 31 March 2026, and the ITR-BN form covers searches from 1 April 2026. Taxpayers who have not faced a search never file either form.
| Form | Search or requisition date | Law and notification |
|---|---|---|
| ITR-B | 1 September 2024 to 31 March 2026 | Income Tax Act, 1961; Rule 12AE, Notification No. 30/2025 dated 7 April 2025; return under Section 158BC |
| ITR-BN | 1 April 2026 onwards | Income-tax Act, 2025; Appendix IV to the Income-tax Rules, 2026, Notification No. 97/2026 dated 24 July 2026 |
How Did Income Tax Return Forms Evolve Before and After 1991 and Under the New Laws?
Return forms moved from paper to pre-filled electronic returns. The Income Tax Act, 1961 came into force on 1 April 1962, and for nearly three decades taxpayers filed paper returns before an assessing officer.
After 1991: Liberalisation and Electronic Filing
After liberalisation in 1991, rate rationalisation, wider use of the Permanent Account Number and the arrival of electronic filing in the mid-2000s changed the process. The portal at incometax.gov.in now offers pre-filled returns, the AIS and the Taxpayer Information Summary, and e-verification replaced most physical verification.
2017 Onwards: Data Matching and the Income-tax Act, 2025
The Goods and Services Tax from 2017 and the Companies Act, 2013 added more data to cross-check. Turnover in ITR-3 or ITR-4 must agree with GST returns, and TDS credits must match the deductor's statements, which is why a clean TDS return filing by your deductor matters to you. From 1 April 2026, the Income-tax Act, 2025 replaces the 1961 Act for FY 2026-27 onwards, so the ITR forms for AY 2026-27 are the last set built on the 1961 Act.
What Is the ITR Due Date for AY 2026-27 and What Happens If You Miss It?
The ITR due date AY 2026-27 is 31 July 2026 for ITR-1 and ITR-2 and 31 August 2026 for non-audit ITR-3 and ITR-4. Taxpayers whose accounts require audit file ITR-3, ITR-5, ITR-6 or ITR-7 by 21 November 2026, after CBDT extended the date from 31 October 2026 on 28 September 2026. The tax audit report is due by 21 October 2026, extended from 30 September 2026. Taxpayers crossing the limits of Section 44AB can read about our income tax audit support.
| Who | Due date for AY 2026-27 | Note |
|---|---|---|
| ITR-1 and ITR-2 filers | 31 July 2026 | Regular due date has passed |
| Non-audit ITR-3 and ITR-4 filers | 31 August 2026 | Regular due date has passed |
| Tax audit report | 21 October 2026 | Extended from 30 September 2026 |
| Audit cases (ITR-3, ITR-5, ITR-6, ITR-7) | 21 November 2026 | Extended from 31 October 2026 on 28 September 2026 |
| Belated return, Section 139(4) | 31 December 2026 | Late fee under Section 234F and interest under Section 234A |
A belated return AY 2026-27 can be filed under Section 139(4) until 31 December 2026. The late fee under Section 234F is ₹5,000, or ₹1,000 when total income is up to ₹5 lakh, and interest under Section 234A applies at 1% per month on unpaid tax. A belated return also forfeits the carry forward of most losses, except loss from house property.
The ITR-U updated return corrects errors or reports missed income under Section 139(8A) within 48 months from the end of the assessment year, with additional tax of 25%, 50%, 60% or 70% depending on how late it is filed.
Important. A return filed on the wrong form is treated as defective under Section 139(9). The assessing officer gives 15 days to rectify it, and an unrectified return is treated as invalid, as if it was never filed. Confirm the form and the regime before you submit.
How to File Your ITR for AY 2026-27 Step by Step?
File your return in six steps, in the order below. Each step reduces the chance of a mismatch notice.
Collect Your Documents
Check the ITR due date AY 2026-27 for your category, then gather Form 16, Form 26AS, the AIS and Taxpayer Information Summary, bank interest certificates, rent receipts, capital gains statements and buy-back letters.
Reconcile the AIS With Your Records
Compare every interest, dividend, sale and TDS entry in the AIS with your own books, and confirm that each buy-back loss in ITR matches a deemed dividend entry. Our guide on how to read and reconcile your AIS before filing ITR shows how.
Select the Correct Form and Regime
Use the table above to match your income to a form and settle the ITR-3 vs ITR-4 question if you run a business. Then compare the old regime with the new tax regime slabs FY 2025-26 in rupees. Business taxpayers must remember Form 10-IEA.
Compute Income and Tax
Fill each schedule and total your liability. Taxpayers filing ITR-3, ITR-5 or ITR-6 need a balance sheet and profit and loss account, and our certified financial statements and accounting and tax compliance teams prepare them. Gains on shares and property also need care, so see our guide to capital gains tax filing for AY 2026-27.
Pay the Balance Tax and Submit
Pay any self-assessment tax under Section 140A before you submit, then file the return on the e-filing portal.
E-Verify Within 30 Days
Verify by Aadhaar OTP, net banking or digital signature. An unverified return is treated as not filed. Once processed, keep a certified income tax return true copy for visa, loan and tender applications.
What Are the Most Asked Questions About ITR Forms for AY 2026-27?
Which ITR form to file for AY 2026-27 if I have a salary and two house properties?
File ITR-1 if your total income is up to ₹50 lakh, you are a resident, and you have no business income, foreign assets or directorship. The new ITR forms for AY 2026-27 allow ITR-1 two house properties reporting, so a second house no longer pushes you to ITR-2. Long-term gains under Section 112A also fit in ITR-1 up to ₹1.25 lakh, and this ITR-1 two house properties rule applies to ITR-4 for presumptive taxpayers as well. If your capital gains exceed ₹1.25 lakh or you hold foreign assets, file ITR-2.
What is ITR-B form and who files it?
ITR-B is the block assessment return notified as Rule 12AE on 7 April 2025 under the Income Tax Act, 1961. A person on whom a search under Section 132 or a requisition under Section 132A took place on or after 1 September 2024 files it under Section 158BC. It reports undisclosed income for the block period, taxed at 60% under Section 113. For searches from 1 April 2026, the ITR-BN form under the Income-tax Act, 2025 applies instead. Ordinary taxpayers never file ITR-B.
Can I still file a belated return for AY 2026-27?
Yes. The ITR due date AY 2026-27 for non-audit individuals has passed, but a belated return AY 2026-27 can be filed under Section 139(4) until 31 December 2026. You pay a late fee under Section 234F of ₹5,000, or ₹1,000 if your total income is up to ₹5 lakh. Interest under Section 234A applies at 1% per month on any unpaid tax. A belated return loses the carry forward of most losses, except house property loss, so complete your ITR filing for FY 2025-26 as early as possible.
Is the new tax regime the default for FY 2025-26?
Yes, the new tax regime is the default for individuals and HUFs for FY 2025-26. The new tax regime slabs FY 2025-26 start at nil up to ₹4 lakh and reach 30% above ₹24 lakh, with a Section 87A rebate that makes income up to ₹12 lakh tax-free. Salaried taxpayers can choose the old regime while filing, and taxpayers with business income must file Form 10-IEA by the due date to opt out.
What is an ITR-U updated return and how long can I file it?
An ITR-U updated return is the form under Section 139(8A) for correcting errors or reporting missed income after the original return is filed or missed. You can file it within 48 months from the end of the assessment year, so the window for AY 2026-27 runs to 31 March 2031. Additional tax of 25%, 50%, 60% or 70% applies depending on how late you file, and the updated return cannot report a refund claim.
Related Guides and Services
- Which ITR Form Should You File for AY 2026–27? Complete Selector Guide: an eight-step method to match your income and status to the right form.
- How to Read & Reconcile Your AIS Before Filing ITR for AY 2026–27: match AIS, TIS, Form 26AS and Form 16 before you file.
- Capital Gains Tax Filing for AY 2026–27: LTCG, STCG, Mutual Funds & Real Estate: rates and schedules for gains and losses.
- Business tax filing: returns for individuals, professionals and business owners.
- Accounting and tax compliance: year-round records that keep your return ready.
- Certified financial statements: balance sheet and profit and loss account for ITR-3, ITR-5 and ITR-6.
- Income tax audit support: help where a tax audit under Section 44AB applies.
- Trust audit services: audit reports for trusts and institutions filing ITR-7.
- TDS return filing: correction statements and compliance when TDS credit is missing.
- Income tax return true copy: certified copies of your filed return for banks and consulates.
Need Professional Help with ITR Forms for AY 2026-27?
N D Savla & Associates, a firm of Chartered Accountants in Andheri East, Mumbai, files returns for salaried individuals, professionals, firms, companies and trusts, and selects the correct form for each. If you need ITR filing for FY 2025-26, a belated return AY 2026-27 or guidance on the ITR-3 vs ITR-4 decision or the ITR forms for AY 2026-27, our team reviews your AIS and documents before filing. Call us, write to us, or reach us through our contact page.
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