ITR Filing 2025: CBDT has released all ITR forms for assessment year 2025–26. Some changes have provided relief to taxpayers, while some have increased the strictness. Read this news for complete details.
ITR Filing 2025: The Central Board of Direct Taxes (CBDT) has notified all the Income Tax Return (ITR) forms 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 incorporated keeping in mind the provisions of the Finance Act 2024.
The most prominent of these changes include relief on small long term capital gains (LTCG), increased threshold for reporting of assets and liabilities, and more detailed reporting of capital gains.
ITR-1 (Sahaj): LTCG relief for small investors
ITR-1 will continue to be applicable for resident individuals with income up to ₹50 lakh, whose income is from salary, one house and other sources. Under the new system, taxpayers will now be able to report LTCG (under section 112A) up to ₹1.25 lakh in ITR-1.
ITR-2: Detailed reporting of capital gains mandatory
ITR-2 is for individuals who have multiple assets, foreign assets or capital gains. In the updated form:
- LTCG before and after July 23, 2024 will have to be reported separately.
- Unlisted bonds/debentures need to be shown separately as per the holding period.
- The amount received from buyback (after October 1, 2024) should be shown at “zero value” in the “Income from other sources” and capital gains section.
- Now the asset and liability reporting limit has been increased to ₹1 crore (earlier ₹50 lakh).
ITR-3: Monitoring costly transactions
ITR-3 is for individuals and HUFs who earn income from business or profession. It has now been made mandatory to choose the old or new tax regime (Form 10-IE or 10-IEA). Detailed disclosures related to business such as profit, loss and foreign income will have to be given. Also, high value transactions will now have to be reported clearly. Such as:
- Cash deposits above ₹1 crore
- Foreign travel above ₹2 lakh
- Electricity bill exceeds ₹1 lakh
- Credit card bills above ₹10 lakh
ITR-4 (Sugam): Relief in LTCG to presumptive taxpayers
ITR-4 is for those who pay tax on presumptive income. This form now allows taxpayers to report LTCG (Section 112A) up to ₹1.25 lakh. This form is applicable for individuals, HUFs and non-LLP firms.
ITR-5: Verification Process
Taxpayers who have not e-verified their ITR can still print the ITR-V form, sign it and send it to the CPC office in Bengaluru by speed post within 30 days. E-verification can also be done through Aadhaar OTP, net banking or a valid demat/bank account.
ITR-6: New rule on buyback loss
ITR-6, notified on 6 May 2025, is for companies that do not claim exemptions. Some important changes have also been made in it:
- It has been made mandatory to report capital gains before and after July 23, 2024 separately.
- Losses associated with buyback will be recognised only if the related dividend income is declared after October 1, 2024.
- Separate reporting regimes have been added for cruise operators (section 44BBC) and profits from the diamond trade (minimum 4% of gross receipts).
- Detailed information of TDS code and Schedule BP has now been made mandatory.
ITR-7: Stricter disclosures for trusts and entities
ITR-7, notified on May 9, is for entities that file tax returns under sections 139(4A) to 139(4D), such as charitable trusts, political parties and research institutions. Changes in this form include:
- Capital gains need to be reported separately before and after July 23.
- The loss incurred on buyback will have to be explained by combining it with the dividend income.
- Reporting of interest exemption on housing loans (Section 24(b)) will also now be mandatory.
- TDS section code disclosure has been added for better tax audit.
