CBDT Fixes All ITR Forms for AY 2026-27: What Notifications 57 to 63 of 2026 Change for CAs
Key Takeaways
- CBDT issued 7 corrigendum notifications (No. 57/2026 to 63/2026) on April 10, 2026, correcting errors in all ITR forms for AY 2026-27.
- ITR-1 gets a completely revamped Schedule-IT with new fields for BSR code, challan serial number, and deposit date for advance tax and self-assessment tax payments.
- ITR-6 receives the most extensive corrections, including fixing typographical errors (such as “QUITY” changed to “EQUITY”) and inserting a new row for pass-through income under short-term capital gains.
- Form U (Updated Return) adds a new disclosure line for taxpayers who selected the wrong head of income, improving correction accuracy.
- CAs must update their software templates and review filing procedures immediately before the ITR filing season begins.
What Happened: CBDT Corrects All ITR Forms Before Filing Season
On April 10, 2026, the Central Board of Direct Taxes (CBDT) issued a series of seven corrigendum notifications numbered 57/2026 through 63/2026 to correct technical errors, typographical mistakes, and structural inconsistencies in the Income-tax Return (ITR) forms for Assessment Year 2026-27. These forms had originally been notified on March 30, 2026 under the new Income-tax Act, 2025 and Income-tax Rules, 2026.
This is the first filing year under the completely new Income-tax Act, 2025, which replaced the Income-tax Act, 1961 effective April 1, 2026. The new ITR forms had already introduced significant changes, including renumbered schedules, revised section references, and new reporting requirements. The corrigenda address errors that were identified in the original notifications within 11 days of their publication.
For Chartered Accountants preparing to file returns for their clients, understanding these corrections is critical. Using the uncorrected form layouts could lead to incorrect reporting, mismatched schedule references, and potential processing errors at the CPC.
Why This Matters: First Filing Year Under the New Income Tax Act 2025
AY 2026-27 is not an ordinary filing year. It is the first year where returns will be filed under a completely new statute. The Income-tax Act, 2025 consolidated 819 sections into 536, renumbered every provision, and introduced new concepts like “Tax Year” (replacing the Assessment Year/Previous Year terminology). The Income-tax Rules, 2026 similarly reduced 511 rules to 333 and 399 forms to 190.
Given this massive structural overhaul, some errors in the first batch of ITR forms were inevitable. The CBDT acted quickly to issue corrections before the filing utilities are released on the income tax portal. However, CAs and tax professionals must carefully review these changes to ensure their understanding of the new forms is accurate.
Notification-by-Notification Breakdown: What Changed in Each ITR Form
Notification 57/2026: ITR-1 (Sahaj) and ITR-4 (Sugam)
ITR-1 (Sahaj): The entire Schedule-IT has been substituted with a revised format. The new Schedule-IT now captures detailed information for advance tax and self-assessment tax payments, including:
- BSR Code of the bank branch
- Date of deposit
- Challan serial number
- Amount of tax paid
This is a significant structural change. The earlier version lacked these granular fields, which are essential for accurate tax credit matching at CPC Bengaluru.
ITR-4 (Sugam): Structural corrections have been made in Part B (Gross Total Income). Specifically, sub-rows under Schedule Salary have been renumbered to ensure consistency. Item labeling errors have been corrected so that the form sequence matches the computation logic.
Notification 58/2026: ITR-2
Multiple corrections have been made across four schedules:
| Schedule | Correction Made | Impact |
|---|---|---|
| Schedule CG (Capital Gains) | Reference “6c-6d” corrected to “5c-5d” | Prevents incorrect capital gains computation |
| Schedule OS (Other Sources) | Marginal headings revised for clarity | Clearer reporting of income from other sources |
| Schedule CFL (Carry Forward of Losses) | Reference corrections | Accurate loss carry-forward computation |
| Part B-TI (Total Income) | Grey shading removed from blank cells | Improved usability, clearer indication of fillable fields |
The capital gains reference correction is particularly important. An incorrect cross-reference in Schedule CG could lead to wrong computation of long-term or short-term capital gains, potentially triggering a demand notice from CPC.
Notification 59/2026: ITR-3
Corrections in ITR-3 focus on Schedule CG and Schedule OS:
- Standardization of mathematical expressions (e.g., “Total (ic + ii)” corrected for consistency)
- Rectification of row references in Part E
- Formatting improvements including removal of grey shading in specified columns
ITR-3 is the most commonly used form for business and professional income. Any error in Part E (which summarizes total income and tax computation) can cascade through the entire return calculation.
Notification 60/2026: ITR-5
ITR-5 corrections address formula and reference errors:
- Schedule CG, Row A8: The aggregation expression has been corrected to reflect proper summation logic
- Schedule UD: BFLA-related computation references corrected (row identifiers changed from “xvi” to “xv”) to ensure accurate linkage with loss set-off provisions
ITR-5 is used by firms, LLPs, AOPs, and BOIs. The formula correction in Schedule CG is critical for partnership firms with capital gains transactions.
Notification 61/2026: ITR-6
ITR-6 (for companies other than those claiming exemption under Section 25 of the Income-tax Act, 2025) received the most extensive corrections of all forms:
- Typographical errors fixed: “QUITY” corrected to “EQUITY” in relevant schedules
- New sub-row inserted: A new reporting line for pass-through income or loss under short-term capital gains has been added. This is significant for companies with investments in Category I and II Alternative Investment Funds (AIFs)
- Redundant rows deleted: Certain rows that were duplicated or no longer applicable have been removed
- Schedule CG corrections: Cross-reference fixes across capital gains schedules
- Schedule BP corrections: Business profit computation references updated
- Schedule UD corrections: Unabsorbed depreciation and loss carry-forward references corrected
- Schedule MATC corrections: Minimum Alternate Tax credit computation references updated
The insertion of a pass-through income row for AIFs is not merely a correction but an enhancement. Under the Income-tax Act, 2025, income from Category I and II AIFs retains its character when it flows through to the investor. Companies investing in such funds must now report this pass-through component separately in their ITR-6.
Notification 62/2026: ITR-7
Corrections to ITR-7 (used by trusts, political parties, educational institutions, and other exempt entities) span across multiple schedules:
- Schedule I: Grey and blank cell interchanges for specific assessment years to improve readability
- Schedule CG: Deletion and omission of certain rows and sub-rows
- Schedule OS: Reference corrections
- Schedule CYLA: Set-off computation references updated
- Part B-TI: Total income computation corrections
- New row for pass-through income: Similar to ITR-6, a new row for pass-through income or loss under short-term capital gains has been inserted
Notification 63/2026: Form U (Updated Return)
Form U, introduced under the Income-tax Act, 2025 for filing updated returns, now includes a clarification in Part A (General Information):
- A new separate line has been inserted to capture cases where taxpayers selected an incorrect head of income in their original return
- This is in addition to the existing provision for incorrect loss reporting
This change is practically significant. When a taxpayer files an updated return under Section 170A of the Income-tax Act, 2025, they must declare the reason for the update. Previously, only “incorrect reporting of loss” was explicitly captured. Now, “incorrect selection of head of income” is also a separate reportable reason. This helps the department track the nature of corrections and may influence future scrutiny patterns.
Complete Summary: All Corrections at a Glance
| Notification No. | Form | Key Changes | Priority for CAs |
|---|---|---|---|
| 57/2026 | ITR-1, ITR-4 | Schedule-IT substituted (ITR-1); Salary schedule renumbered (ITR-4) | High (salaried clients) |
| 58/2026 | ITR-2 | Schedule CG reference fix; OS headings; CFL corrections | High (capital gains cases) |
| 59/2026 | ITR-3 | Schedule CG/OS standardization; Part E row references | High (business/profession) |
| 60/2026 | ITR-5 | Schedule CG formula fix; Schedule UD reference correction | Medium (firms, LLPs) |
| 61/2026 | ITR-6 | Typo fixes; new AIF pass-through row; BP/UD/MATC corrections | High (companies) |
| 62/2026 | ITR-7 | Schedule I/CG/OS/CYLA corrections; pass-through row added | Medium (trusts, exempt entities) |
| 63/2026 | Form U | New line for “incorrect head of income” in updated return | Medium (correction filings) |
What CAs and Tax Professionals Must Do Now
Step 1: Update Your ITR Templates and Software
If your tax software vendor has already loaded the March 30 form layouts, ensure they release an updated patch incorporating the April 10 corrigenda. Filing with the pre-corrigendum layouts will result in validation errors once the income tax portal utilities are updated.
Step 2: Review Capital Gains Schedules Carefully
The corrections to Schedule CG across ITR-2, ITR-3, ITR-5, and ITR-6 all address cross-reference errors. When preparing capital gains computations for clients, verify that your row references match the corrected forms.
Step 3: Check AIF Investment Reporting for Companies
If your corporate clients have investments in Category I or II AIFs, the new pass-through income row in ITR-6 requires separate reporting. Obtain the fund-level income breakup from the AIF manager to correctly classify pass-through income as short-term capital gains, long-term capital gains, or other income.
Step 4: Brief Clients Filing Updated Returns
For clients considering filing updated returns under Section 170A, note the new disclosure requirement in Form U. They must now specifically declare if the update is due to selecting the wrong head of income. This may influence the decision on whether to file an updated return or seek other remedies.
Step 5: Monitor the Income Tax Portal for Utility Release
The e-filing utilities on the income tax portal (incometax.gov.in) will reflect these corrected forms. Monitor for the utility release date, as early filing after the new Tax Year begins on April 1, 2026 will only be possible once the updated utilities are live.
Frequently Asked Questions (FAQ)
Q1: Do the corrigenda change any substantive tax rules or provisions?
No. The corrigenda (Notifications 57-63/2026) only correct typographical errors, cross-reference mistakes, and formatting issues in the ITR form layouts. No tax rates, exemptions, deductions, or filing deadlines have been changed.
Q2: Which ITR form received the maximum number of corrections?
ITR-6 (used by companies) received the most extensive corrections under Notification 61/2026. Changes include fixing the “QUITY” to “EQUITY” typo, inserting a new row for AIF pass-through income, and correcting references across Schedules CG, BP, UD, and MATC.
Q3: Is the new Schedule-IT in ITR-1 a major change?
Yes, it is a significant structural revision. The revised Schedule-IT now requires BSR code, challan serial number, date of deposit, and tax amount for each advance tax and self-assessment tax payment. This granular data is essential for CPC to match tax credits accurately.
Q4: Will the income tax portal utilities be updated to reflect these corrections?
Yes. The e-filing utilities on the income tax portal will incorporate these corrected form layouts. CAs should monitor incometax.gov.in for the updated utility release. Do not file returns until the corrected utilities are available.
Q5: What happens if I file using the pre-corrigendum form layout?
Returns filed through the income tax portal will automatically use the corrected layout once the utilities are updated. However, if you are using offline utilities or third-party software, ensure they have been updated to reflect the April 10 corrigenda. Filing with incorrect form layouts may result in validation errors or processing delays.
Q6: What is the new disclosure in Form U (Updated Return)?
Form U now includes a separate line in Part A to capture cases where the original return had an “incorrect selection of head of income.” Previously, only incorrect loss reporting was explicitly listed as a reason for filing an updated return. This additional disclosure helps the department categorize the nature of corrections.
Need help navigating the new ITR forms under the Income-tax Act, 2025? The regulatory advisory team at A S Banka Advisors Private Limited can assist with tax return preparation, compliance review, and advisory on the new provisions. Talk to an expert to ensure your AY 2026-27 filings are accurate from day one.
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Please consult a qualified professional for advice specific to your situation. Information is current as of April 14, 2026.