The Income Tax Department has added a new reporting column in the ITR forms (ITR-1, ITR-2, ITR-3, ITR-4) for AY 2026-27. This section is called "Receipts Not in Nature of Income" (category - Other income) which appears under Schedule EI "Other exempt income".
The new column is mandatory for the amounts received that are not treated as taxable income such as loans, gifts from relatives, capital receipts and certain refunds.
Which Amounts Can Be Reported under "Receipts Not in Nature of Income"?
1. Monetary Gifts from Relatives
- Gifts from father, mother, spouse, children, siblings, grandparents.
- Gifts received under will.
- Gifts on marriage, birthday, anniversary.
- Family Settlement Amount
2. Loan Amounts
- Home loan
- Personal loan
- Vehicle loan
- Education loan
- Gold loan
- Business loan
- Loan from Banks, NBFC, relatives or friends
3. Capital Receipts
- Capital introduced into business
- Partner's capital contribution
- Shareholder capital or share application money
- Capital subsidy
- Corpus Donation
- Securities Premium
- Security deposit refund
4. Refunds
- Income Tax refund
- GST refund
- Advance payment refund
5. Insurance & Other Receipts
- Insurance claim
- LIC maturity proceeds
- Court compensation
- Inheritance
- Nominee receipts
- Trustee receipts
6. Sale Proceeds
- Sale of rural agricultural land
- Compensation for compulsory acquisition
- Insurance claim for capital asset
- Refund of purchase advance
- Booking amount refund
7. Investment and Capital Recovery
- Return on Capital
- Repayment of loan given earlier
- Withdrawal of own capital
- Partner's capital withdrawal
- Refund of investment amount
8. Other Non Income Receipts
- Advance against sale of property
- Court Compensation
- Arbitration Award
- Refund of excess tax paid
- Stamp duty refund
- PF transfer (not withdrawal)
- NPS account transfer
- Money received as nominee for another person
These are generally not treated as taxable income but can be reported under the new column where applicable.
How to Report in ITR?
While filing your return:
- Go to Schedule EI - Details of Exempt Income (Income not to be included in total income or not chargeable to tax .
- Click on serial number 3 i.e., other exempt income.
- Select "Receipts Not in Nature of Income." under category "other income".
- Enter the amount received and "Save".
The portal provides category-wise reporting for different types of receipts.
Also Read - Individual Income Tax Return Filing Due Dates for FY 2025-26 (AY 2026-27)
Documents Required
You must maintain documentary evidence depending on the receipt:
- Gift deed
- Loan agreement
- Bank statement
- Sale deed
- Insurance policy documents
- Refund order
- Deposit receipt
- Relationship proof (for family gifts)
Proper documentation is extremely important in case of scrutiny.
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