It has now been made mandatory for taxpayers filing ITR-4 for AY 2026-27 to declare their bank balance. The Central Board of Direct Taxes (CBDT) has made this major change in the income tax return form, so that the tax system can be made more transparent and data based. CBDT has made it mandatory to provide additional information about bank balance in ITR-4 through a notification issued on March 30, 2026.
What was the rule before?
Till now, those filing ITR-4 had to provide only bank account information like account number, IFSC code and bank name. It was not necessary to disclose the actual bank balance. But now under the new rule it will be mandatory to provide information about bank balance.
Which people will be affected?
This change may especially affect those who file ITR-4 under the presumptive taxation scheme. This includes.
- small businessmen
- Freelancer
- Professionals and Consultants
- Transport Operators
- People earning side income along with salary
These people come under sections 44AD, 44ADA and 44AE of the Income Tax Act.
Will the tax department's vigilance increase?
According to CA Dr. Suresh Surana, this change has been made mainly to increase transparency. However, with this the tax department will now be able to better match income and bank transactions. He said that taxpayers have to ensure that there is no major difference between their declared income and bank transactions, otherwise the risk of investigation or notice may increase.
Responsibility of salaried people will also increase
People who earn extra income from freelancing, consultancy, digital platform or small business along with their job will now have to fill ITR more carefully. They will have to maintain a proper tally of their side income, bank receipts and other financial records.
Will CA's help be necessary now?
The government is continuously adding more disclosure and reporting rules in the ITR form to make the tax system more robust. Now the tax department is using technology and automatic data matching more. In such a situation, notice can come even if there is a small mistake or missing information.
According to Dr. Surana, it may be beneficial for small businessmen, freelancers and people earning from multiple sources to take professional help now, so that ITR can be filled correctly and there is no problem later.
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