Income Tax Dept Opens ITR-1, ITR-4 Filing for AY 2026-27: Key Changes Explained

The official Account of the Income Tax Department, Government of India, posted on X, " Attention taxpayers, the Excel utility and Online filing for ITR-1 and ITR-4 for AY 2026-27 has been enabled and is now available for taxpayers on the e-Filing portal."

Meanwhile, the new Income-tax Act, 2025, which came into effect from April 1, 2026, marks a comprehensive overhaul of India's six-decade-old tax framework, with a focus on simplifying compliance, enhancing transparency, and rationalising exemptions for salaried taxpayers.

While tax slabs and rates remain unchanged, the new regime significantly altered the way income, deductions, and disclosures are reported and verified, shifting emphasis towards more accurate and detailed reporting.

Multiple income tax exemption limits are set to be increased under the new rules, particularly benefiting individuals opting for the old tax regime.

One of the key changes pertains to House Rent Allowance (HRA). Currently, taxpayers residing in metro cities such as Mumbai, Delhi, Kolkata, and Chennai can claim an exemption of up to 50 per cent of their basic salary, while those in other cities are eligible for 40 per cent.

Under the revised framework, cities like Bengaluru, Hyderabad, Pune, and Ahmedabad have also been included in the higher 50 per cent exemption category, thereby expanding relief to a wider urban population.

The new act also provides for a substantial increase in exemptions related to children's education. The existing allowance of Rs 100 per child per month is set to be raised to Rs 3,000 per child per month.

In addition, salaried employees are set to benefit from enhanced meal-related tax exemptions. Under the new Income Tax Rules, 2026, the tax-exempt limit for employer-provided meals has been increased from Rs 50 per meal to Rs 200 per meal.

Additionally, expanded use of PAN and tighter reporting norms will require taxpayers to disclose financial information more comprehensively.

It is believed that these revisions are designed to align exemption limits with current cost structures and inflationary trends, which have rendered many existing thresholds outdated. The broader objective is to ease the tax burden on salaried individuals while modernising the tax administration system.

- ANI