ITR Filing AY 2026-27: Key Changes and Important Checks for Taxpayers

The Income Tax Return (ITR) filing season for Assessment Year (AY) 2026-27 is underway, with millions of salaried taxpayers preparing to file their returns. Tax filing has become more detailed due to the Annual Information Statement (AIS), expanded data reporting, and stricter verification systems.

Key Changes This Year

The most significant change is the expansion of ITR-1 eligibility. Taxpayers can now use ITR-1 if their long-term capital gains from listed shares or equity mutual funds do not exceed ₹1.25 lakh during FY 2025-26. Individuals with up to two self-occupied properties are also eligible.

Tax experts caution that wider reporting and stronger verification systems make it essential to accurately disclose all income and investment transactions.

Reconcile Form 16, AIS, and Form 26AS

Taxpayers should not rely solely on Form 16, as it only reflects information provided by the employer. Salary income and TDS should be verified against Form 26AS, while AIS should be reviewed for additional income sources such as:

- Interest income
- Dividends
- Capital gains from mutual funds and investments

Any mismatch should be checked and corrected before filing.

Choose the Correct ITR Form

ITR-1: Resident individuals with income up to ₹50 lakh from salary, up to two house properties, and other sources.
ITR-2: Individuals with income above ₹50 lakh, significant capital gains, foreign assets, or agricultural income above ₹5,000.
ITR-3: Taxpayers with business or professional income.
ITR-4: Eligible taxpayers under the presumptive taxation scheme.

Using the wrong form may result in notices, penalties, or defective returns.

Old vs New Tax Regime

The new tax regime remains the default option. However, taxpayers should compare their tax liability under both regimes before filing.

Those claiming deductions such as House Rent Allowance (HRA), Leave Travel Concession (LTC), home loan benefits, or deductions under Chapter VI-A may find the old regime more beneficial.

Final Checklist Before Filing

- Reconcile Form 16, AIS, and Form 26AS.
- Verify all income sources and TDS details.
- Check eligibility for deductions and exemptions.
- Select the correct ITR form.
- Compare tax liability under both tax regimes.
- Review all details before submitting the return.

Careful verification and accurate reporting can help taxpayers avoid notices, mismatches, and compliance issues later.