The new ITR forms for AY 2026-27, which cover income earned in FY 2025-26, were notified from 30 March 2026, earlier than in the previous year, and they are the last set filed under the Income-tax Act, 1961 before the Income-tax Act, 2025 takes over for income of FY 2026-27. They bring a mix of relaxations, extra disclosures and one entirely new return, ITR-B, for a very specific situation.

Every year the Income Tax Department updates its return forms. Among the headline changes this year, ITR-1 and ITR-4 now allow income from up to two house properties, section 89A reporting has been taken out of the simplified forms, F&O traders get separate reporting in ITR-3, and every form gains secondary contact fields. Income tax slabs for FY 2025-26 also differ from the previous year, with a larger rebate under the new regime. Alongside these, the department has introduced ITR-B, a special form for block assessments after search cases, which ordinary taxpayers will never use but which often creates confusion. This guide from The Classic Partners LLP, Chartered Accountants in Andheri East, Mumbai, explains what changed, who is affected, how the slabs and rebate work, and which form to pick, so that your return is accurate the first time.

What Are the New ITR Forms for FY 2025-26 (AY 2026-27)?

For AY 2026-27 there are seven regular forms, ITR-1 to ITR-7, plus the updated-return form ITR-U and the special block assessment form ITR-B. The regular forms keep the same categories as before, but each has been revised, and ITR-1, ITR-2, ITR-3 and ITR-4 carry the changes that affect most taxpayers.

The forms for individuals and small taxpayers were notified on 30 March 2026, and the remaining forms followed shortly afterwards, so the filing season could begin early.

What Are the Due Dates for AY 2026-27?

The due dates for AY 2026-27 were reported as follows. Verify your own date on the portal before relying on any of them.

If you missed these dates, a belated return can be filed up to 31 December 2026, and a revised return is reported to be available until 31 March 2027 with a fee after 31 December 2026. Read our page on the new income tax forms for 2026 for more detail.

What Has Changed in ITR-1 to ITR-7 for AY 2026-27?

The main changes widen the simplified forms slightly, tighten disclosure for traders and foreign income, and add new fields across all forms. The list below covers the changes that matter most to individual and business taxpayers.

• Two house properties in ITR-1 and ITR-4. Resident taxpayers can now report income from up to two house properties in ITR-1 and ITR-4, where earlier a second property pushed them to ITR-2 or ITR-3. A new field also asks for rent that could not be realised, so keep tenant records ready.
• Long-term capital gains in the simple forms. Long-term gains under section 112A up to ₹1.25 lakh can be reported in ITR-1 and ITR-4, provided there are no losses carried forward. Anything beyond that, or short-term gains, still requires ITR-2 or ITR-3.
• Section 89A reporting removed from ITR-1 and ITR-4. Income from retirement benefit accounts maintained in foreign countries, relevant for relief under section 89A, can no longer be reported in the simplified forms. Taxpayers with such income now file ITR-2 or ITR-3.
• Separate reporting for F&O trading in ITR-3. ITR-3 asks for turnover and profit or loss from futures and options trading separately from other business income. Traders should have a clean contract-wise ledger and a reconciled broker statement before filing.
• Updated capital gains rates in ITR-2 and ITR-3. The schedules now reflect the rates introduced for transfers on or after 23 July 2024, and the older rate rows have been removed. Gains must therefore be split before and after that date where relevant. See our capital gain overview.
• Tenant and rent details. The forms capture additional details of tenants, such as name and PAN, TAN or Aadhaar, in the house property schedule. This allows the department to match rent with the tenant's TDS or deductions.
• Secondary address, mobile and email. Taxpayers can now provide both primary and secondary address, mobile number and email address. This helps the department reach you, so keep every contact detail current to avoid missing notices.
• Fee field for late revised returns. Forms include a field for the fee payable when a revised return is filed after 31 December, reported as ₹1,000 where income is up to ₹5 lakh and ₹5,000 where it is higher. Plan corrections before that date.
• Continued disclosure on foreign assets and crypto. Foreign assets, overseas income and virtual digital asset transactions remain in the schedules of ITR-2 and ITR-3. Our guidance on filing ITR for cryptocurrency explains the reporting.

Because details such as thresholds and field names can change when the utilities are updated, confirm each change against the form instructions on the e-filing portal before filing. If you have received a notice for a form mismatch, see our page on defective return notice under section 139(9).

What Are the Income Tax Slabs and Rebate for FY 2025-26 (AY 2026-27)?

For FY 2025-26, the new tax regime is the default and has seven slabs, with no tax up to ₹4 lakh, and a rebate under section 87A that makes tax nil for taxable income up to ₹12 lakh. The old regime continues to offer its older slabs and deductions for those who choose it.

New Regime Slabs for FY 2025-26

Health and education cess of 4 percent applies on the tax in each case.

The rebate under section 87A is up to ₹60,000 for resident individuals with taxable income up to ₹12 lakh, so a salaried person who also gets the ₹75,000 standard deduction can have no tax up to a salary of about ₹12.75 lakh. The rebate generally does not apply to tax on special-rate capital gains, and marginal relief applies for income just above ₹12 lakh.

Old Regime Slabs for Most Individuals

Higher exemption limits apply to senior and super senior citizens in the old regime.

Which regime is cheaper depends on your deductions, so compare both every year, and see our tax health check service for a personalised comparison.

What Is ITR-B and Who Needs to File It?

ITR-B is a special return form for block assessment, used only when a person receives a notice under section 158BC after a search under section 132 or a requisition under section 132A. It is not a form that ordinary taxpayers file, and it cannot be chosen voluntarily like ITR-1 or ITR-3.

The form was notified in April 2025 and applies to searches initiated or requisitions made on or after 1 September 2024, when the block assessment framework was brought back. It requires the person to report:

• The date of the search and the block period.
• Details of returns already filed for the assessment years in that period.
• The income of each year.
• The computation of undisclosed income.

Returns under section 158BC are filed in response to the notice within the time stated in it, are furnished electronically, and are treated as a return under section 139 for further proceedings. Self-assessment tax is generally not available as credit in this return. For searches on or after 1 April 2026, which fall under the Income-tax Act, 2025, reports indicate a corresponding form named ITR-BN will be used.

A taxpayer who has received such a notice should consult a professional immediately, as the proceedings are formal and the consequences can be serious. Our pages on scrutiny assessment and notice reply and assessment support outline how we assist.

Which ITR Form Should You File for AY 2026-27 After These Changes?

Most salaried residents with simple income can still use ITR-1, now with a second house property if needed. Investors with larger gains, foreign assets or directorships use ITR-2, and business owners and professionals use ITR-3 or ITR-4, depending on whether they use presumptive taxation.

The detailed pages on ITR-1, ITR-2, ITR-3 and ITR-4 filing explain each form, and our ITR filing services team can choose and file for you.

How Have ITR Forms in India Evolved Over the Years?

ITR forms in India have evolved from a single paper return before 1991 to a family of electronic forms matched to taxpayer type, and each year's version reflects changes in law and in the department's data capabilities.

• Before 1991. Most taxpayers filed one basic paper return under the Income-tax Act, 1961, and assessments were largely manual.
• Late 1990s to early 2000s. After liberalisation, filing was computerised in stages, simplified forms were introduced in the late 1990s, and electronic filing began in the early 2000s.
• The ITR-1 to ITR-7 family. In the following years the forms were grouped into this family, with simplified forms for small taxpayers and detailed schedules for foreign assets, capital gains and virtual digital assets.
• Pre-filled data and faceless processes. The e-filing portal later introduced pre-filled data, the Annual Information Statement and faceless processes, and the forms became a way of matching your declarations to data reported by banks, brokers and employers.
• 1 September 2024. Chapter XIV-B for block assessments was reintroduced for searches after this date, which is why ITR-B now exists.
• 1 April 2026. The Income-tax Act, 2025 applies from this date, and returns for income of FY 2026-27 will be filed in forms under the new Rules, while AY 2026-27 continues under the 1961 Act.

Current forms and utilities are published on the official Income Tax Department e-filing portal.

Frequently Asked Questions About the New ITR Forms for AY 2026-27