The income tax return (ITR) filing window for the assessment year 2026-27 (financial year 2025-26) has officially opened, with the Central Board of Direct
Taxes (CBDT) releasing the updated forms. While the overall structure remains familiar, several refinements have been introduced to improve compliance and make filing easier, especially for individuals using ITR-1 and ITR-2. “The income reporting structure and number of forms are kept unchanged. It is worthwhile to note that these forms will be filed under the erstwhile legislation, that is, the Income Tax Act, 1961, and therefore, broader alignment is with the existing set of disclosure requirements, including reference to ‘assessment year’ as was the case previously,” says Sumit Singhania, Partner, Deloitte India, in a report from The Economic Times. Below are the major updates taxpayers should be aware of before filing their returns by July 31. Deductions under Section 80G and Section 80GGC for contributions to charitable institutions and political entities now come with stricter reporting norms. Taxpayers must provide the name and PAN of the political party to which the donation was made. “The existing schedule requires the taxpayer to enter the contribution date, and the amount contributed, specifying how much was paid in cash and how much was paid through other modes such as cheque, UPI, NEFT or RTGS,” states a report by Taxmann. Additionally, transaction reference numbers and bank IFSC details must also be submitted. “The new ITR forms require two additional details from the taxpayer seeking a deduction under Section 80GGC. Taxpayers are required to provide the name of the political party and its PAN under Schedule 80GGC,” the report said. “This additional disclosure requirement appears to be aimed at enhancing transparency and accountability, as well as curbing fraudulent or unverifiable claims that the tax department may have encountered in the past,” adds Kuldip Kumar, Partner, Mainstay Tax Advisors, in the report. New Reporting Format For F&O Traders Individuals involved in futures and options (F&O) trading will notice more detailed reporting requirements. The forms now require a breakdown of financial components such as opening stock, purchases, expenses, sales, and closing stock in the profit and loss statement. “The difference between total sales and cost of goods sold equals gross profit or loss, which is carried forward to the profit and loss account. The new ITR forms have introduced specific columns to report turnover from F&O trading and the income from such trading that is credited to the profit and loss account,” according to Taxmann. This change is designed to bring greater clarity and consistency to how trading income is disclosed. More Detailed Online Donation Records For those claiming deductions on charitable donations under Section 80G, the documentation requirements have expanded. Taxpayers must now include comprehensive details of the recipient organisation, including its name, PAN, and full address. “This is to ensure that the donation is traceable and made to an eligible institution. The new ITR forms have introduced additional reporting requirements in this schedule for claiming deductions: (a) transaction reference number for UPI transfers or the cheque/IMPS/NEFT/ RTGS reference number, and (b) IFS code of the bank,” as per the Taxmann summary of ITR changes. Mandatory Secondary Address Field Another notable addition is the requirement to provide a secondary address. Previously, taxpayers only needed to submit one address along with limited contact details. "The new ITR forms have introduced a separate field for a secondary address, thereby requiring assessees to furnish both primary and secondary addresses," the Taxmann note states.
