A S BANKA ADVISORS

The Income-tax Act 2025 is barely two weeks old, and the forms are already getting patched. On April 10, 2026, CBDT issued seven corrigendum notifications (Nos. 57 to 63/2026) correcting errors across every single ITR form for Assessment Year 2026-27.

If your startup is preparing for its first filing under the new Act, here is what you need to know.

What Happened

When the Income-tax Act 2025 replaced the 1961 Act effective April 1, 2026, CBDT notified fresh ITR forms for all categories of taxpayers. Within weeks, cross-reference errors, formula mismatches, and formatting issues surfaced across ITR-1 through ITR-7 and Form U (Updated Returns).

The seven corrigendum notifications fix these issues. No tax rates have changed. No exemptions have been altered. No filing deadlines have moved. But the corrections are essential for accurate filing.

Three Changes That Matter for Startups

1. ITR-1 Schedule-IT: Complete Restructure

Notification 57/2026 completely replaces Schedule-IT in ITR-1 (Sahaj). The new version adds BSR bank code fields, deposit dates, challan serial numbers, and separate tracking for advance tax and self-assessment payments. If your founders or employees file ITR-1, their tax software must be updated before filing.

2. AIF Pass-Through Income Gets Its Own Row

Notifications 61 and 62 insert new sub-rows in ITR-6 (companies) and ITR-7 (trusts) for pass-through income from Category I and II Alternative Investment Funds under short-term capital gains. If your startup has received investment through an AIF, or if the company itself holds AIF units, this classification now needs separate reporting. Get your fund-level income breakups ready.

3. Form U Now Captures Wrong Head of Income

Notification 63/2026 adds a new disclosure line in Part A of Form U (Updated Returns). Previously, Form U only captured cases where the original return reported an incorrect loss. Now, it also captures cases where the taxpayer selected the wrong head of income entirely. If your startup filed an original return and needs to correct the income classification, this is the mechanism.

Capital Gains References Fixed Across Forms

Notifications 58 through 60 correct Schedule CG cross-references in ITR-2, ITR-3, and ITR-5. Row references like “6c-6d” have been corrected to “5c-5d,” formula aggregation expressions have been fixed, and BFLA computation references have been updated. These are not cosmetic changes: incorrect row references in capital gains schedules can produce wrong tax computations in software that auto-fills based on form structure.

What Your CA Should Do Right Now

• Verify software updates: Confirm that your tax software vendor has released patches incorporating the April 10 corrections. Do not file using the original (uncorrected) utilities.
• Audit Schedule CG references: If you are preparing capital gains computations, cross-check all row references against the corrected form layouts.
• Prepare AIF breakups: For clients with Category I/II AIF investments, obtain fund-level income breakups for separate pass-through classification.
• Monitor the e-filing portal: Track incometax.gov.in for corrected e-filing utility release dates before starting any filings.

Download the full carousel PDF with notification-by-notification breakdown

The Bigger Picture

Seven corrections within two weeks of the new Act taking effect is a reminder that AY 2026-27 will be a transition year. The consolidation from 819 sections to 536 means new form structures, new row references, and new reporting requirements that the ecosystem is still absorbing. Build extra time into your compliance calendar this year.

Need help navigating the new Income-tax Act 2025 for your startup? Schedule a strategy session with A S Banka Advisors Private Limited.