Income Tax Department Notifies ITR Forms for Assessment Year 2026-27

The Income Tax Department has officially released the new Income Tax Return (ITR) forms, including ITR-U (Updated ITR) and ITR-V (ITR Verification) for the Assessment Year (AY) 2026-27. This notification marks the official commencement of the tax filing process for the upcoming assessment year. Taxpayers are advised to familiarize themselves with these updated forms to ensure compliant and timely filing.

Extended Window for Updated Returns (ITR-U)

A significant change introduced is the extension of the time limit for filing an updated income tax return under Section 139(8A). Starting from April 2025 (as announced in Budget 2025), taxpayers now have up to four years, instead of the previous two, from the end of the relevant assessment year to file an ITR-U. Consequently, an updated income tax return for the Financial Year (FY) 2020-21 (AY 2021-22) can be filed until March 31, 2026.

Understanding ITR-V and its Effective Date

The ITR-V form serves as an acknowledgment and proof of a filed return with the Income Tax Department. This form is crucial for verification of returns filed without Aadhaar OTP or a digital signature. The updated ITR-V form is set to become effective on March 31, 2026, and will apply to all returns filed for the Assessment Year 2026-27. The e-verification or submission of ITR-V must be completed within 30 days from the date of filing the income tax return.

Penalties for Delayed ITR-U Filing

While the ITR-U provides flexibility to correct errors or report missed income, it comes with applicable penalties. The additional tax payable on updated returns varies depending on the timing of the filing. Penalties range from 25% to 70% of the additional tax due, increasing with further delays in filing.