ITR-4 Filing for AY 2026-27 to Require Mandatory Bank Balance Reporting

The Central Board of Direct Taxes (CBDT) has introduced a significant compliance update by making the disclosure of bank balances compulsory in the revised ITR-4 form for Assessment Year (AY) 2026-27. This move is part of the government’s ongoing efforts to strengthen transparency and build a more data-oriented tax administration system.

Through Notification No. 45/2026/F. No. 370142/5/2026-TPL dated March 30, 2026, the CBDT has amended the ITR-4 reporting framework to include mandatory reporting of bank account balances. Earlier, taxpayers filing ITR-4 were only required to mention details such as bank account number, IFSC code, and bank name, while disclosure of actual balances remained optional.

The revised requirement is expected to impact taxpayers covered under the presumptive taxation scheme, including small business owners, professionals, freelancers, consultants, transport operators, and salaried individuals earning additional income under Sections 44AD, 44ADA, and 44AE of the Income-tax Act.

Previously, taxpayers were already required to disclose certain financial particulars such as sundry creditors, sundry debtors, inventories, and cash in hand, even in cases where some of these details were not directly relevant to their business activities. Under the updated provisions, reporting of all bank balances has now become mandatory under Schedule BP – Financial Particulars of the Business, whereas it was optional until the previous financial year.

CA (Dr.) Suresh Surana highlighted that taxpayers were already obligated to furnish bank account details under “Part D21 – Bank Account Details,” which required disclosure of all savings and current accounts maintained in India during the relevant financial year, excluding dormant accounts that remained inactive for more than three years. The latest amendment further expands this disclosure framework by making the reporting of actual bank balances compulsory.