Starting from the assessment year 2026-27, the Income-Tax Department of India will implement stricter disclosure norms for taxpayers utilizing the presumptive taxation scheme. The revised ITR-4 form, notified on March 31, will require taxpayers to disclose their bank balances, investments, sundry debtors, sundry creditors, and cash as of March 31, 2026. This initiative aims to enhance the verification process by allowing tax authorities to cross-check reported income against a taxpayer's actual financial position, especially for those who do not maintain detailed books of accounts. Instances of taxpayers reporting income while holding significant bank balances and investments have prompted this move. Tax experts view this as a shift towards data-driven scrutiny, ensuring that reported income aligns more closely with actual financial capacity. The new requirements are designed to curb misuse without imposing a heavy compliance burden, as most of the necessary information is already available to taxpayers. Additionally, the updated ITR-4 is expected to provide some relief to small taxpayers.