The Income-Tax Department in India is implementing stricter disclosure norms for taxpayers utilizing the presumptive taxation scheme, effective from the assessment year 2026-27. The revised ITR-4 form, notified on March 31, 2023, 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 accuracy of reported income by allowing tax authorities to cross-check declared figures against a taxpayer's financial assets. Instances of taxpayers reporting income while holding significant bank balances have prompted this move. Officials believe that these checks will ensure better reporting and prevent misuse of the presumptive scheme, without imposing a heavy compliance burden, as most of the required information is already accessible to taxpayers. Tax experts view this change as a shift towards data-driven scrutiny, emphasizing that future disclosures will need to closely correlate with the income declared by taxpayers. The updated ITR-4 form is also expected to provide some relief to small taxpayers, balancing compliance with transparency.