The Central Board of Direct Taxes (CBDT) has said a major compliance change is mandatory disclosure of bank balances under the revised income tax return forms for taxpayers filing ITR-4 for Assessment Year (AY) 2026-27. The government has been gradually increasing the disclosure requirements in ITR forms to bring in more transparency and to have a more data-driven tax administration. CBDT has issued Notification No. 45/2026/F. No. 370142/5/2026-TPL dated March 30, 2026 to provide additional reporting of bank balance in ITR-4 AY 2026–2027.

Earlier, the bank account details such as account number, IFSC code and bank name were to be disclosed by taxpayers filing ITR-4, but the disclosure of actual bank balances was optional. However, the latest ITR-4 changes are likely to affect small business owners, professionals, freelancers, consultants, transport operators and salaried individuals earning side income under the presumptive taxation regime covered under Sections 44AD, 44ADA and 44AE of the Income-tax Act.