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For taxpayers filing ITR-4 for Assessment Year (AY) 2026-27, disclosing their bank balance has now been made mandatory. The Central Board of Direct Taxes (CBDT) has introduced this significant change to the Income Tax Return forms with the aim of making the tax system more transparent and data-driven. Through a notification issued on March 30, 2026, the CBDT has made it mandatory to provide additional details regarding bank balances within ITR-4.

**What were the previous rules?**
Until now, individuals filing ITR-4 were only required to provide basic bank account details—such as the account number, IFSC code, and the name of the bank. Disclosing the actual bank balance was not a mandatory requirement. However, under the new regulations, providing information regarding the bank balance will now be compulsory.

**Who will be affected?**
This change is expected to primarily impact individuals who file their ITR-4 under the Presumptive Taxation Scheme. This category includes:

*   Small business owners
*   Freelancers
*   Professionals and consultants
*   Transport operators
*   Individuals earning supplementary income alongside a salaried job

These individuals fall under the purview of Sections 44AD, 44ADA, and 44AE of the Income Tax Act.

**Will the Tax Department's scrutiny increase?**
According to CA Dr. Suresh Surana, this amendment has been introduced primarily to enhance transparency. However, it will also enable the Tax Department to better cross-verify declared income against bank transactions. He noted that taxpayers must ensure there are no significant discrepancies between their declared income and their bank transactions; otherwise, they face an increased risk of scrutiny or receiving a tax notice.

**Increased Responsibility for Salaried Individuals**
Individuals who earn additional income—through freelancing, consultancy, digital platforms, or small business ventures—alongside their regular employment will now need to exercise greater caution when filing their ITR. They will be required to maintain accurate records and ensure proper reconciliation of their supplementary income, bank receipts, and other financial documents.

**Will the assistance of a CA now be essential?**
The government is continuously incorporating stricter disclosure and reporting requirements into ITR forms with the objective of strengthening the overall tax system. The Tax Department is now making extensive use of technology and automated data matching. Consequently, even a minor error or an oversight in providing information could result in the issuance of a notice.

According to Dr. Surana, it would be beneficial for small business owners, freelancers, and individuals earning income from multiple sources to seek professional assistance at this stage, ensuring that their Income Tax Returns (ITRs) are filed accurately and to avoid any complications in the future.

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