The Central Board of Direct Taxes (CBDT) has notified the Income-tax (Third Amendment) Rules, 2026, introducing a revised ITR-2 form applicable for Assessment Year (AY) 2026-27.
The amendment, issued via an official Gazette notification, will come into force from March 31, 2026 and will apply to income tax returns filed for FY 2025-26.
Key Highlights of the New ITR-2 Form
1. Revised Form Structure
The updated ITR-2 form replaces the existing format under Appendix-II of the Income Tax Rules, 1962. It is applicable to:
- Individuals
- Hindu Undivided Families (HUFs)
(Not having income from business or profession)
2. Enhanced Disclosure Requirements
The new form introduces more detailed reporting requirements, including:
- Expanded personal information fields (primary & secondary address, contact details)
- Mandatory reporting of Aadhaar and PAN
- Detailed filing status selection (original, revised, belated, etc.)
3. New Tax Regime Selection Option
Taxpayers must now explicitly confirm:
- Whether they are opting for the new tax regime under Section 115BAC(6)
- Default selection remains "No," requiring conscious taxpayer choice
4. Reporting Under Section 139(1) Proviso
Additional disclosures required if return is filed despite not being mandatory, such as:
- Deposits exceeding ₹1 crore in current accounts
- Foreign travel expenditure above ₹2 lakh
- Electricity consumption exceeding ₹1 lakh
This aligns with high-value transaction monitoring by the tax department.
5. Expanded Residential Status Classification
The form provides detailed options for determining residential status , including:
- Resident
- Resident but not ordinarily resident (RNOR)
- Non-resident
It also captures:
- Days of stay in India
- Foreign income thresholds
6. Increased Transparency in Investments & Directorship
New reporting requirements include:
- Details of directorship in companies
- Disclosure of unlisted equity shares held
- Reporting of Foreign Portfolio Investor (FPI) status, if applicable
7. Detailed Schedules for Income Reporting
The updated form includes structured schedules for:
- Salary income
- House property
- Capital gains (short-term & long-term)
- Other sources
With more granular data fields, ensuring accurate income classification.
What This Means for Taxpayers
The revised ITR-2 form reflects the government’s push toward:
- Greater transparency
- Improved data tracking
- Alignment with digital compliance systems
However, it also means:
- Higher compliance responsibility
- Need for accurate documentation
- Increased scrutiny of high-value transactions
Effective Date
- Applicable from: March 31, 2026
- For: Returns filed for AY 2026-27 (FY 2025-26)
Click here to view/download the official copy of the notification
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