/ ITR AY 2026-27 Update · Updated 2026-10-22

AY 2026-27 ITR Forms + New Disclosures India - BQP, new Schedule VDA + Schedule 112A + updated TP + foreign asset disclosures.

CBDT notified ITR forms for AY 2026-27 (FY 2025-26) with several new disclosure requirements reflecting Finance Act 2024 + Finance Act 2025 changes. Includes new Schedule VDA (virtual digital assets), updated Schedule 112A for LTCG 12.5% framework, enhanced foreign asset reporting (Schedule FA), new TP disclosure (Form 3CEAB). Here's what's new for AY 2026-27 ITR filing.

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Written by CA Durgesh Chavda

Chartered Accountant (ICAI) · Founder, Bharat Quantum Prospera · US incorporation, India-US DTAA, FEMA ODI, NRI taxation, cross-border structuring · LinkedIn

/ Key form changes for AY 2026-27

What's new.

Schedule VDA (Virtual Digital Assets): separate disclosure for crypto / NFT / specified digital assets. Section 115BBH 30% flat tax + Section 194S 1% TDS reconciliation. Transaction-level reporting for exchanges + wallets.
Schedule 112A updated: for LTCG 12.5% framework (post Finance Act 2024). Grandfathering of pre-23-July-2024 acquisitions choice between 12.5% without indexation vs 20% with indexation.
Schedule FA (Foreign Assets): enhanced for CRS / FATCA integration. Specific line items for foreign bank accounts, foreign securities, foreign life insurance, foreign private trusts, foreign company shareholding above 10%.
Section 56(2)(viib) legacy: historical disclosure retained even though provision abolished for new transactions. Pre-abolition cases still require reporting.
Section 43B(h) MSE disclosure: specific line item for amounts disallowed and amounts paid in subsequent FY (reversal). Year 2 (FY 2025-26) first full-year reporting.
BEPS Pillar 2 disclosure: for in-scope groups (consolidated revenue EUR 750M+), new Pillar 2 disclosure lines reflecting QDMTT + Form 3CEAE / 3CEAF / 3CEAG integration.
Schedule Startup: enhanced DPIIT Startup India + Section 80-IAC claim disclosure.

/ Deadlines for AY 2026-27

Key dates.

31 July 2026: individuals / HUFs not subject to tax audit (standard due date).
31 October 2026: taxpayers subject to tax audit (Section 44AB) + specified assessees.
30 November 2026: taxpayers subject to transfer pricing audit (Form 3CEB applicable).
31 December 2026: belated return filing deadline (with Section 234F late fee); revised return.
31 March 2027: updated return under Section 139(8A) (up to 24 months from end of relevant AY, with specific additional tax).

/ Common AY 2026-27 ITR mistakes to avoid

Where filings go wrong.

VDA transactions not fully reconciled across multiple exchanges + wallets.
LTCG 12.5% vs 20% indexation choice not optimised per property / per transaction (pre vs post 23 July 2024 acquisitions).
Section 43B(h) MSE disallowance missed - should be in Clause 22 of Form 3CD + corresponding ITR disclosure.
Foreign asset Schedule FA incomplete - CRS/FATCA data from foreign banks must be reconciled.
Form 10F electronic filing (for DTAA treaty rate claim) not completed before ITR filing.
Section 44AB tax audit threshold crossed but Form 3CB/CD not filed within deadline - ITR filing blocked.
Form 3CEB TP audit threshold crossed but Form 3CEB not filed - November deadline.
Section 115BBH VDA 30% rate applied to loss (no loss offset against VDA gain or vs other income). Common mistake.
Section 194S VDA TDS not claimed as credit (if deducted on sale by exchange).

/ Specific attention items for 2026-27

Finance Act integration.

LTCG 12.5% framework: Finance Act 2024 changed LTCG regime. Properties/securities acquired before 23 July 2024: choice between 12.5% without indexation vs 20% with indexation (whichever lower). Post 23 July 2024: 12.5% without indexation.
STT securities Section 112A: 12.5% post Finance Act 2024.
Non-STT securities / unlisted / property Section 112: 12.5% with indexation choice as above.
Debt mutual fund: post April 2023 regime - no indexation; STCG at slab rate regardless of holding period.
Section 194R business perquisite TDS: 10% TDS on business perquisites + related gift value disclosure.
Section 194T partnership firm TDS: 10% TDS on partner's share of profit above INR 20,000.
UAE Corporate Tax integration: UAE operations post 2024 CT may require specific disclosure.
Last updated: 2026-10-22.

/ Ready when you are

AY 2026-27 ITR filing window: July-November 2026.

Schedule VDA + 112A + FA + 43B(h) + Pillar 2 + Form 10F + Form 3CEB + Form 3CD. BQP standard annual engagement + fast turnaround. Scope-based.

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FAQ

Common questions, answered.

What's new in AY 2026-27 ITR forms?

Separate Schedule VDA (crypto / NFT with Section 115BBH 30% + Section 194S TDS reconciliation), updated Schedule 112A for LTCG 12.5% framework (Finance Act 2024), enhanced Schedule FA foreign assets with CRS / FATCA integration, Section 43B(h) MSE disclosure, BEPS Pillar 2 disclosure for in-scope groups, enhanced Startup India + 80-IAC claim disclosure.

When is AY 2026-27 ITR due?

31 July 2026 for individuals/HUFs without tax audit. 31 October 2026 for tax audit cases (Section 44AB). 30 November 2026 for TP audit cases (Form 3CEB). 31 December 2026 belated. 31 March 2027 updated return (Section 139(8A) with 24-month window + additional tax).

How do I claim LTCG indexation under Finance Act 2024?

For long-term capital assets acquired BEFORE 23 July 2024: choice between (a) 12.5% without indexation, or (b) 20% with indexation (whichever lower per asset). Compute both; pick lower. For assets acquired on or AFTER 23 July 2024: only 12.5% without indexation (no indexation choice). Report in Schedule 112A as applicable.

How do I report crypto transactions in AY 2026-27 ITR?

Schedule VDA - new dedicated schedule. Report: aggregate gain under Section 115BBH 30% flat tax. No loss offset allowed. Only deduction: cost of acquisition. Section 194S 1% TDS on sale by exchange - claim as TDS credit. Transaction-level reconciliation across multiple exchanges / wallets. Foreign exchange holdings also reportable in Schedule FA.

Does Section 43B(h) MSE disallowance need to be in ITR?

Yes - Form 3CD Clause 22 (tax audit) requires specific disclosure. Corresponding ITR line item reflects: (a) MSE amounts disallowed in current FY under 43B(h), (b) MSE amounts paid in current FY where disallowance was reversed from prior year. For AY 2026-27, this is year 2 of 43B(h) impact.

Does BQP handle AY 2026-27 ITR filing?

Yes - standard annual tax engagement. Residence status determination + ITR-1/2/3/5/6/7 as applicable + all new schedules (VDA, 112A, FA, 43B(h), Pillar 2) + Form 10F electronic filing + Form 3CEB TP + Form 3CD tax audit + Section 195 TDS refund claims + capital gain Section 54 reinvestment. Fast turnaround through July-November 2026 ITR window. WhatsApp +91 78018 87130.