All income-tax return (ITR) forms for assessment year 2026-27 (AY27) i.e. financial year 2025-26 (FY26) have been notified by the Income-Tax Department. It has also enabled Excel Utility for the ITR-1 (Sahaj), ITR-2, ITR-3, and ITR-4 (Sugam) online forms for taxpayers on its e-filing portal for AY27 / FY26.
Taxpayers have till 31 July to file their returns by logging into the e-filing portal with your User ID and password. Notably, availability of excel utility means that you can prepare your returns offline before uploading them digitally. To make use of this facility, log into the portal, download your ITR form, fill it out, generate a JSON file, and upload it online after proper verification and cross-checking of details.
Who should choose ITR-4 (Sugam)?
The ITR-4 or Sugam form is applicable for individual taxpayers or Hindu Undivided Family (HUF), who is a resident of India, other than not ordinarily resident or a resident firm (other than LLP) having total income up to ₹50 lakh and having income from business or profession which is computed on a presumptive basis (under sections 44AD / 44ADA / 44AE of Income Tax Act,1961) and income from salary or pension, agricultural income up to ₹5,000, capital gain under section 112A of Income Tax Act,1961 up to up to ₹1,25,000, and other sources.
Other sources which include interest from savings account, interest from deposit (bank / post office / cooperative society), interest from income tax refund, family pension, interest received on enhanced compensation and any other interest income (such as interest income from unsecured loan).
ITR-4: Key things to know about earnings from rent
Notably, the Income-Tax Department has introduced some key changes in how taxpayer report income using the ITR-4 / Sugam form online for this tax year (FY26 / AY27). Two of these changes are related to income from rent:
- Taxpayers can now report income from up to two house properties in ITR-1, rather than just one house property.
- A new, specific field for “rent which cannot be realised” has been added, aiding taxpayers with rented properties.
ITR-4: Top FAQs on reporting rent and taxation
How do I compute income from a house property which is partly self-occupied and partly let-out? According to the official income-tax website, house property may consist of two or more independent units, one of which is self-occupied, and the remaining is used for any other purpose (i.e., let-out or used for own business).
Income from such property will be computed in the following manner:
- Part / unit which is occupied by you for your residence throughout the year will be treated as an independent property and income from such a part / unit will be computed in the manner as described in the ITR-4 user manual in case of a self-occupied property.
- Part / unit which is let out will be treated as an independent property and income from such a part/unit will be computed in the manner as described in the ITR-4 user manual in case of let out property.
- Please Note: From AY 2026-27, you can disclose income from up to two house properties, in ITR-4.
What is the tax treatment of unrealised rent that is subsequently realised? Any subsequent recovery of unrealised rent will be deemed to be your income under the head ‘Income from House Property’ in the year in which such rent is realised (whether or not you are the owner of that property in that year).
It will be charged to tax after deducting a sum equal to 30% of unrealised rent.