ITR filing: 4 disclosures you need to be ready with in new financial year
Apr 6, 2026
Synopsis
India’s tax department has rolled out updated ITR forms for FY 2025–26, introducing tighter disclosure norms while keeping the overall structure unchanged. The changes focus on greater transparency—especially around political donations, F&O trading, and digital payments—while adding minor conveniences like a secondary address field.
The Central Board of Direct Taxes (CBDT) has kicked off the income tax return (ITR) filing season 2026- 27 (financial year 2025-26) by notifying the ITR forms. The tax department has introduced several tweaks across forms, aimed at tightening compliance and also simplifying the process for small, individual taxpayers who typically use ITR-1 and ITR-2. “The income reporting structure and number of forms are kept unchanged. It is worthwhile to note that these forms will be filed under the erstwhile legislation, that is, the Income tax Act, 1961, and therefore, broader alignment is with existing set of disclosure requirements, including reference to ‘assessment year’ as was the case previously,” says Sumit Singhania, Partner, Deloitte India.
Here are some key changes that you are likely to encounter while filing your returns this year, on or before 31 July:
Donations to political parties
Section 80G allows deductions on donations made to charitable institutions and political parties. This time round, you will have to furnish the PAN (permanent account number) of the political party, along with the name, you have donated to. Contributions to political parties or electoral trusts can be claimed as deductions under Section 80GGC. “The existing schedule requires the taxpayer to enter the contribution date and the amount contributed, specifying how much was paid in cash and how much was paid through other modes such as cheque, UPI, NEFT or RTGS,” states a report by Taxmann.
It also seeks details like the transaction reference number and the IFSC code of the bank through which the payment was made. “The new ITR forms require two additional details from the taxpayer seeking a deduction under Section 80GGC. Taxpayers are required to provide the name of the political party and its PAN under Schedule 80GGC,” the report says.
“This additional disclosure requirement appears to be aimed at enhancing transparency and accountability, as well as curbing fraudulent or unverifiable claims that the tax department may have encountered in the past,” adds Kuldip Kumar, Partner, Mainstay Tax Advisors.
Turnover from F&O trading
Taxpayers who engage in futures and options (F&O) trading are required to disclose key items debited and credited to the statement of profit and loss for the financial year. This includes opening stock, purchases, direct expenses, sales and closing stock.
“The difference between total sales and cost of goods sold equals gross profit or loss, which is carried forward to the profit and loss account. The new ITR forms have introduced specific columns to report turnover from F&O trading and the income from such trading that is credited to the profit and loss account,” according to Taxmann.
Online payment details
To claim deductions under Section 80G on donations made to charitable institutions, taxpayers have to furnish the recipient entity’s name, PAN, complete address, besides city, state code and pin code. “This is to ensure that the donation is traceable and made to an eligible institution. The new ITR forms have introduced additional reporting requirements in this schedule for claiming deductions: (a) transaction reference number for UPI transfers or the cheque/IMPS/NEFT/ RTGS reference number, and (b) IFS code of the bank,” as per the Taxmann summary of ITR changes.
Secondary address
Typically, return-filers have to provide basic, personal information and identification details such as name, PAN, Aadhaar number, address, contact information and so on in the ITR forms. Until last year, the forms sought details of only one address, two mobile numbers and two email IDs for communication purposes. “The new ITR forms have introduced a separate field for a secondary address, thereby requiring assessees to furnish both primary and secondary addresses,” the Taxmann note says.
[The Economic Times]
