New Delhi, July 7 -- The Income Tax Department has updated the ITR utility and schema for Assessment Year 2026-27, introducing a key change to how taxpayers can disclose certain non-taxable receipts.

For AY 2026-27, the earlier 'Other Exempt Income' field in Schedule EI (Exempt Income) has been removed. In its place, the department has now introduced a new reporting option titled 'Receipts not in the nature of income.'

The change is expected to bring greater clarity in reporting transactions that are not taxable because they do not qualify as income under the Income Tax Act, 1961.

In previous ITR utilities, taxpayers could disclose various tax-exempt receipts under a broad category called 'Other Exempt Income. Taxpayers also used this ...