Mandatory Disclosures for NRIs Under Presumptive Taxation in New ITR Forms for AY 2026-27

The Income Tax Department has introduced updated Income Tax Return (ITR) forms for Assessment Year (AY) 2026-27, which include new specific columns for Non-Resident Indians (NRIs) opting for the presumptive taxation scheme. These changes aim to enhance transparency and facilitate more accurate reporting of income.

Specific Reporting for Presumptive Income

The updated ITR forms now feature dedicated columns for reporting profits and gains from businesses falling under Sections 44B, 44BB, 44BBA, 44BBC, or 44BBD of the Income Tax Act. NRIs who choose to opt for these presumptive taxation schemes are now required to separately disclose their gross receipts/turnover and the net profit derived from these businesses.

Enhancing Transparency and Compliance

This mandate for additional disclosure by non-resident taxpayers is a step towards improving the transparency of reported income and enabling better cross-verification with existing tax data. The forms specifically cater to the unique aspects of presumptive taxation provisions applicable to certain businesses.

Implications for Tax Audit

While presumptive taxation schemes typically relieve taxpayers from the obligation of maintaining detailed books of accounts and undergoing a tax audit under Section 44AB, the inclusion of Section 44BBD in a manner similar to Sections 44B or 44BBA within the new ITR forms indicates a legislative intent to extend similar treatment. This suggests that a tax audit may not be required in cases where taxpayers opt for presumptive taxation under Section 44BBD, aligning the compliance requirements with the overall presumptive framework.

Distinction Between AY 2026-27 and Tax Year 2026-27

It is crucial to remember the distinction: AY 2026-27 pertains to income earned in FY 2025-26, for which salaried individuals and others not liable for tax audit will file their ITR by July 31, 2026. Tax Year 2026-27, on the other hand, refers to income earned in FY 2026-27, with its ITR due by July 31, 2027.