ITR Filing Season 2026 Has Begun: What's New in AY 2026-27 and How to File Faster with Tax Software

Introduction

The income tax return filing window for Assessment Year 2026-27 is officially open. The Central Board of Direct Taxes (CBDT) notified all ITR forms - ITR-1 to ITR-7 - on March 30, 2026, well ahead of the deadline. Taxpayers can begin filing their returns for Financial Year 2025-26 right now, without waiting for July.

But this is not a routine filing season. AY 2026-27 sits at a unique crossroads: the new Income Tax Act, 2025 came into force on April 1, 2026, but the ITR you file this year - for income earned in FY 2025-26 - is still governed entirely by the old Income Tax Act, 1961.

Add to this a new extended deadline for some taxpayers, expanded ITR form eligibility, and enhanced pre-filled data - and there is a lot to get right before you hit submit.

This blog walks you through everything that is new in AY 2026-27, who needs to file what form, key deadlines, and how the right income tax filing software makes the entire process faster and error-free.

One Important Clarification: Old Act Governs AY 2026-27

There is a lot of confusion this year because of the transition to the new Income Tax Act, 2025. Let us clear this up immediately.

For AY 2026-27 (income earned in FY 2025-26), the Income Tax Act, 1961 applies in full. The new Income Tax Act, 2025 does not affect your current filing - it will only apply when you file returns for Tax Year 2026-27, which will be due in 2027.

This means:

• All deductions - Section 80C (₹1.5 lakh limit), Section 80D, HRA under Section 10(13A), home loan interest under Section 24(b) - remain as they were under the old Act
• The old and new tax regime choice under the 1961 Act still applies for this filing
• Old ITR form numbers (ITR-1, ITR-2, ITR-3, ITR-4, etc.) are used - not the new forms under the Income Tax Rules, 2026

Do not let news about the new Income Tax Act 2025 confuse your current filing strategy. The rules you know from last year still apply for FY 2025-26.

ITR Filing Due Dates for AY 2026-27

Key change this year: The due date for ITR-3 and ITR-4 (non-audit business and professional cases) has been extended to August 31, distinguishing it from the July 31 deadline for salaried individuals. This is a new provision under the Finance Act, 2026 that gives small businesses and professionals extra time to prepare their accounts.

Also note: the revised return deadline has been extended from December 31 to March 31 of the next year. For AY 2026-27, this means you can revise your return up to March 31, 2027.

What ITR Form Should You File? Quick Guide

What's New in ITR Forms for AY 2026-27

1. ITR-1 Now Covers Two House Properties

The biggest form-level change this year is the expanded scope of ITR-1 (Sahaj). Until last year, if you owned more than one house property, you had to move to the more complex ITR-2. From AY 2026-27, ITR-1 can be used to report income from up to two house properties. This simplifies filing significantly for salaried individuals and pensioners who own a second home or a rented-out property.

2. Secondary Address and Contact Fields Added

A new field for a secondary address has been added across all ITR forms (ITR-1 to ITR-7). Additionally, the contact information section now separately captures primary and secondary mobile numbers and email IDs. This is aimed at reducing communication failures from the Income Tax Department when the primary contact is unreachable.

3. Enhanced Capital Gains Reporting in ITR-2

A new field has been added to the Capital Gains Schedule in ITR-2 to report buyback losses, following an amendment in the tax treatment of company buybacks. Additionally, detailed disclosures are now required for deductions under Section 80C, HRA under Section 10(13A), and other key exemptions. TDS section references must also be mentioned in the "Details of TDS deducted" schedule for improved reconciliation.

4. Expanded AIS / TIS Pre-Filled Data

The Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) are now the primary source of pre-filled data in all ITR forms. The data now covers a wider range of transactions - bank interest, dividends, capital gains from broker platforms, mutual fund redemptions, property sale proceeds, and high-value spends - pulled from multiple third-party sources in near real-time.

Important: Pre-filled data should always be verified against your own records before accepting it in the ITR. Errors in third-party reported data can lead to incorrect tax computation or notices if left unchecked.

5. Disclosure Threshold for Assets and Liabilities Raised

The Schedule AL (Assets and Liabilities) reporting threshold has been raised - detailed disclosure is now required only if total income exceeds ₹1 crore, increased from the previous lower threshold. This removes the compliance burden for a large section of taxpayers who were previously required to disclose asset details.

Old Tax Regime vs New Tax Regime: What to Choose for AY 2026-27

The new tax regime remains the default for AY 2026-27 under the Income Tax Act, 1961. If you want to opt for the old regime, you must actively choose it while filing your return.

• Salaried individuals (non-business): Can switch between old and new regime directly in the ITR every year, as long as they file by the due date
• Business / professional taxpayers: Must file Form 10-IEA before the due date to opt out of the new regime. This option can be exercised only once in a lifetime

One critical penalty: If you file your return after the due date (i.e., a belated return), you cannot opt for the old tax regime - you will be mandatorily taxed under the new regime.

This is an important reason to file before July 31 or August 31 as applicable.

Not sure which regime saves you more tax? Use an income tax calculator to compare your liability under both regimes before filing.

Penalties for Late Filing in AY 2026-27

Even if your final tax liability is zero due to rebates under Section 87A (applicable for income up to ₹12 lakh under the new regime), you must still file your ITR by the due date to avoid the late filing fee.

Updated Return (ITR-U): Liberalised Rules for AY 2026-27

The Updated Return framework has been significantly improved this year. Key changes include:

• Taxpayers can now file ITR-U even after receiving a reassessment notice, within the prescribed timelines
• Filing ITR-U with payment of tax, interest, and the additional levy now provides immunity from penalties for under-reporting or misreporting
• Taxpayers can now revise loss returns using ITR-U if the updated return reduces the declared loss - a change from earlier rules
• The window for filing ITR-U for AY 2026-27 is up to 31 March 2031 (48 months from the end of the assessment year)

E-Verification: Do Not Forget This Step

Submitting your ITR is not enough. An unverified return is treated as a defective return - legally, it is as if you never filed at all.

After submitting your ITR, you have 30 days to e-verify it through one of these methods:

• Aadhaar OTP - your mobile number must be actively linked to your Aadhaar
• Net banking - log in to the e-filing portal through your bank's secure portal
• Electronic Verification Code (EVC) - generated via a pre-validated bank account or demat account
• ITR-V (physical) - signed copy sent by post to CPC Bengaluru (only if e-verification is not possible)

How Income Tax Software Makes AY 2026-27 Filing Faster

Filing manually - downloading utilities, entering data, computing regime comparisons, reconciling AIS mismatches - takes hours per return. For CA firms managing hundreds of clients, this is neither scalable nor error-safe.

Here is how the right income tax filing software changes the process:

• Auto-import of AIS / TIS data - pre-fills salary, interest, capital gains, and TDS details directly from the income tax portal, reducing manual entry
• Regime comparison - computes tax liability under both old and new regimes instantly, helping clients choose the better option
• Correct form selection - automatically identifies the right ITR form based on income type, turnover, and other parameters
• Error validation - flags mismatches between AIS data and entered figures before submission, reducing the risk of notices
• Bulk filing for CA firms - allows filing returns for multiple clients from a single dashboard without logging in and out repeatedly
• E-verification support - integrated e-verification workflows within the software

CompuTax, India's trusted income tax software since 1989, is fully updated for AY 2026-27. Whether you are a salaried individual filing your own return or a CA firm handling hundreds of ITRs, CompuTax ensures your filings are accurate, on time, and compliant with the latest CBDT notifications.

Quick ITR Filing Checklist for AY 2026-27

• ☐ Collect Form 16 (salary TDS certificate) from your employer - note: for TY 2026-27 onwards it will be renamed Form 130, but for this filing year, Form 16 still applies
• ☐ Download and verify your AIS and TIS from the income tax portal - check for any mismatch with actual income received
• ☐ Gather interest certificates from all bank accounts, FDs, and NSC/PPF statements
• ☐ Collect investment proofs - ELSS statements, life insurance premium receipts, PPF passbook, home loan interest certificate
• ☐ Identify the correct ITR form based on your income sources
• ☐ Compare tax liability under old and new regime - choose the regime that saves more tax
• ☐ If opting for old regime as a business taxpayer, file Form 10-IEA before the due date
• ☐ Pay any self-assessment tax due before filing
• ☐ Submit return and e-verify within 30 days

Conclusion

AY 2026-27 filing season is the last one under the Income Tax Act, 1961 - next year's returns will be governed by the new Income Tax Act, 2025. That makes it important to file this year's return carefully and correctly, using familiar rules that still apply.

Start early. Verify your AIS data. Choose the right tax regime. File before the deadline - July 31 for salaried individuals, August 31 for non-audit business taxpayers. And make sure you e-verify your return within 30 days of submission.

If you are a CA firm managing multiple client ITRs, the right income tax software is not optional - it is the only way to file accurately at scale within the tight July-August window. CompuTax is already updated and ready for AY 2026-27.