ITR Filing 2026: 5 Big Changes Taxpayers Should Know This Year

Income Tax Return (ITR) filing for the financial year 2025-26 has started, and this year several important changes have been introduced. The government has updated ITR forms and filing rules to make the process easier and more transparent for taxpayers. Salaried employees, professionals, and business owners should carefully check the new updates before filing their returns.

1. Two House Properties Now Allowed in ITR-1

One major relief for taxpayers is that people with income from up to two house properties can now use the simpler ITR-1 form. Earlier, taxpayers with two houses had to file ITR-2, which was more detailed and complicated.

2. Simplified Capital Gains Reporting

The government has removed older capital gains reporting categories that were based on different tax rules before and after July 23, 2024. Now taxpayers will follow a single reporting structure, making the filing process easier and less confusing.

3. More Details Needed for Bank Accounts

Taxpayers filing under presumptive taxation schemes through ITR-4 must now mention the closing balance of all active bank accounts as of March 31, 2026. This change aims to improve transparency in income reporting.

4. Asset Disclosure Rules Relaxed

The government has increased the limit for mandatory asset and liability disclosure from ₹50 lakh to ₹1 crore net worth. This means many middle-class taxpayers no longer need to provide detailed information about their assets while filing returns.

5. Deductions Will Be Selected Through Drop-Down Menu

This year, deductions under sections like 80C, 80D, and other Chapter VI-A benefits must be selected through a drop-down menu on the e-filing portal instead of manually typing them. This change is expected to reduce mistakes and improve accuracy.

Filing Process Begins for AY 2026-27

The Income Tax Department has already enabled online filing for ITR-1 and ITR-4 forms. Experts advise taxpayers to carefully check Form 16, AIS details, bank information, and deduction claims before submitting returns to avoid notices or errors later.