ITR Filing 2025: The Central Board of Direct Taxes (CBDT) has notified all Income Tax Return (ITR) form for the assessment year 2025–26 (FY 2024–25). There has been no major change in the structure of the forms, but several important amendments have been included keeping in mind the provisions of the Finance Act 2024.
The most prominent of these changes is- the increased limit of relief, property and liabilities reporting on small long-term capital gains (LTCG), and more detailed reporting of capital gains.
ITR-1 (Spontaneous): LTCG relief for small investors
ITR-1 will be applicable for residents with income up to ₹ 50 lakhs so far, whose income is from salary, one house and other sources. Under the new system, now taxpayers will also be able to report in ITR-1 under LTCG (Section 112A) up to ₹ 1.25 lakh.
ITR-2: Detailed reporting of capital gain mandatory
ITR-2 is for the individuals that have many assets, foreign assets or capital benefits. In updated form:
- LTCG will have to report separately before and after 23 July 2024.
- Unlisted bonds/debentures will have to look different according to the holding period.
- The amount received from the buyback (after 1 October 2024) will have to be shown at “income from other sources” and “zero price” in the capital gains section.
- Now the reporting limit of property and liability has been reduced to ₹ 1 crore (first ₹ 50 lakh).
ITR-3: Monitoring of expensive transactions
ITR-3 is for individuals and HUFS that earn from business or profession. In this, information about choosing old or new tax reizards has been made mandatory (Form 10-EE or 10-EEA). Detailed revelations related to business such as benefits, loss and foreign income will have to be given. Also, high -value transactions will now have to report clearly clearly. Such as:
- Cash deposit over ₹ 1 crore
- Travel abroad more than ₹ 2 lakh
- More than ₹ 1 lakh electricity expenditure
- Credit card bill above ₹ 10 lakh
ITR-4 (Sugam): Estimated taxpayers relief in LTCG
ITR-4 is for tax paying on presumptive income. This form now facilitates reporting LTCG (Section 112A) up to ₹ 1.25 lakh to taxpayers. This form is applied to individuals, HUFS and non-LLP firms.
ITR-5: Verification Process
Taxpayers who did not e-verify their ITR can still print, sign the ITR-V form and send the CPC office of Bangalore within 30 days from the speed post. E-verification Aadhaar can also be done with OTP, net banking or valid demat/bank account.
ITR-6: New rule on buyback loss
Notified ITR-6 on 6 May 2025 is for companies that do not claim discounts. Some important changes have also been made in this:
- It is necessary to show different capital gains reporting before and after 23 July 2024.
- Damage related to buyback will be valid only if the respective dividend income is announced after 1 October 2024.
- Separate reporting arrangements have been added for cruise operators (Section 44BBC) and diamond business benefits (at least 4% gross resipt).
- Detailed information of TDS code and schedule BP has now been made mandatory.
ITR-7: Strict revelations for trusts and institutions
The ITR-7 notified on 9 May is for institutions that fill tax returns under Section 139 (4A) to 139 (4D), such as Charitable Trust, Political Party and Research Institute. Changes of this form include:
- Capital gains will have to be reported separately before and after July 23.
- The deficit from buyback will have to be clarified by connecting with dividend income.
- Reporting of interest exemption on housing loans (Section 24 (B)) will also be necessary now.
- The disclosure of the TDS section code has been added for better tax audit.
Also read: Income tax department sent notice for suddenly increased earnings? What does it mean, how to answer?
