Income Tax Return Update (AY 2026–27): With the new financial year underway, taxpayers are eager to know when they can start filing their Income Tax Return (ITR). Experts suggest that the filing process is likely to begin soon, as the government has already notified the necessary forms.

ITR Forms Notified—Filing to Begin Soon

The Income Tax Department has already released ITR forms for Assessment Year 2026–27 on March 30. These include:

• ITR-1 (Sahaj)
• ITR-2
• ITR-3
• ITR-4
• ITR-5, ITR-6, and ITR-7

Typically, once forms are notified, the department enables filing utilities on its portal. After that, taxpayers can begin submitting their returns.

Experts believe that, unlike last year, the process is expected to start in April itself, as there have been no major last-minute structural changes delaying the rollout.

Why Filing Might Still Take Time for Salaried Individuals

Even if the filing portal opens early, salaried taxpayers may need to wait before filing returns. The main reason is Form 16.

• Employers are required to issue Form 16 by June 15
• It contains details of salary, TDS, and tax deductions
• This document is essential for accurate ITR filing

Without Form 16, filing returns may lead to errors or mismatches.

Important Clarification on New Tax Law

A major development this year is the implementation of the Income Tax Act 2025 from April 1, 2026, replacing the older Income Tax Act 1961.

However, there’s an important catch:

• ITR for FY 2025–26 will still be filed under the Income Tax Act 1961
• Taxpayers will continue using terms like:
  • Previous Year
  • Assessment Year

The transition to the new law will reflect in future filings.

Deadline for Filing ITR

For individual taxpayers:

• Last date to file ITR (AY 2026–27): July 31, 2026

Filing before the deadline helps avoid penalties and ensures faster refunds.

Key Change in ITR-1 Form

One significant update this year is related to ITR-1 (Sahaj):

• Now allowed for taxpayers with income from up to two house properties
• Earlier, such taxpayers had to use ITR-2 or ITR-3

However, ITR-1 is still not applicable if:

• You have business or professional income
• Capital gains exceed specified limits (Section 112A)
• You have income from lottery or horse racing

What Happened Last Year?

In the previous year, ITR filing was delayed due to major changes in tax rules, including:

• Changes in capital gains taxation
• Updates in indexation rules
• Adjustments in tax provisions

This year, since forms were notified early, such delays are less likely.

Final Takeaway

ITR filing for AY 2026–27 is expected to begin soon, possibly in April, once the utilities are activated. However, salaried taxpayers should ideally wait for Form 16 to ensure accurate filing.

Despite the rollout of the new tax law, returns for this year will continue under the old system, maintaining continuity for taxpayers.

Staying updated, preparing documents early, and filing on time will help you avoid last-minute stress and ensure smooth tax compliance.