Seven ITR Filing Changes You Can't Ignore: New Rules On Political Donations, Rent, And F&O Reporting For 2026

What's Different This Filing Season

India's tax department has tightened transparency requirements across multiple schedules while simultaneously simplifying filing for small taxpayers. The changes, effective from April 1, 2026, focus on enhanced traceability of political and charitable donations, detailed F&O trading disclosures, and expanded property income reporting. Taxpayers filing returns by the July 31 deadline for salaried individuals must navigate these updated rules to avoid scrutiny or notices.

Political Donations Need More Than Just Receipts

Taxpayers claiming deductions under Section 80GGC for contributions to political parties or electoral trusts must now furnish the name and PAN of the political party, in addition to the contribution amount, date, and payment mode. Transaction reference numbers for UPI transfers or cheque/IMPS/NEFT/RTGS reference numbers are now mandatory, along with bank IFSC codes. This marks a significant departure from earlier forms, where basic details sufficed.

Charitable Donations Face Stricter Scrutiny

Claiming deductions under Section 80G on donations to charitable institutions now requires comprehensive disclosure, including the recipient entity's name, PAN, complete address, city, state code, and pin code. Additionally, taxpayers must provide transaction reference numbers for digital payments and bank IFSC codes to ensure donations are traceable and made to eligible institutions.

F&O Traders Must Break Down Profit And Loss

Individuals engaged in futures and options trading face detailed reporting requirements in the new ITR forms. Taxpayers must disclose key items debited and credited to the profit and loss statement, including opening stock, purchases, direct expenses, sales, and closing stock. The forms also require specific disclosure of turnover and income from F&O trading, reflecting the tax department's focus on this high-volume segment.

Two House Properties Now Allowed In ITR-1 And ITR-4

One of the most taxpayer-friendly changes allows individuals filing ITR-1 (Sahaj) and ITR-4 (Sugam) to report income from up to two house properties one self-occupied and one rented directly in these simplified forms. Previously, only one house property could be reported, forcing taxpayers with two properties to file more complex forms like ITR-2.

Unrealized Rent Gets A Dedicated Field

For Assessment Year 2026-27, a new field titled "The amount of rent which cannot be realized" has been added to the property income schedule. This allows landlords to report rental income that remains outstanding or uncollected, providing a more accurate picture of actual receipts versus accrued income.

Secondary Address Now Mandatory

The updated ITR forms introduce a separate field for a secondary address, requiring taxpayers to furnish both primary and secondary addresses along with contact details. Previously, only one address was required; the change aims to improve communication and traceability.

Key Highlights

1. Political donation deductions under Section 80GGC now require the name and PAN of the political party
2. Transaction reference numbers and bank IFSC codes mandatory for both political and charitable donations
3. Charitable donations under Section 80G require complete address, PAN, state code, and pin code of recipient entity
4. F&O traders must disclose detailed profit and loss components including opening stock, purchases, expenses, sales, and closing stock
5. ITR-1 and ITR-4 filers can now report income from up to two house properties instead of one
6. New field introduced to report "amount of rent which cannot be realized" for rental income
7. Secondary address field now mandatory in all ITR forms alongside primary address
8. Due dates remain July 31 for salaried individuals, August 31 for non-audit business cases, and October 31 for audit cases
9. Long-term capital gains up to ₹1.25 lakh can now be reported in ITR-1 and ITR-4

Sources: Central Board of Direct Taxes, Economic Times Wealth, Taxmann, CA Club India, Times Now, April-May 2026