The Central Board of Direct Taxes (CBDT) has issued notifications for all Income Tax Return (ITR) Forms – ITR-1 to ITR-7 applicable for Assessment Year 2025–26, i.e., for the Financial Year 2024–25. These forms incorporate changes arising from the Finance Act, 2024, along with enhancements in disclosure norms and new conditions related to capital gains and buyback of shares.
🧾 ITR-1 (SAHAJ)
📅 Notified via Notification No. 40/2025 dated 29.04.2025
Applicable for: Resident individuals (except Not Ordinarily Resident) with total income up to ₹50 lakh from salary, one house property, other sources (excluding lottery, race horses, etc.)
🔑 Key Updates:
- ✒️ Long-Term Capital Gains under Section 112A (up to ₹1.25 lakh) allowed to be filed under ITR-1, provided there is no carry forward or brought forward capital loss.
- ✒️ Deductions Reporting Enhanced: Clearer disclosure required for various deduction claims.
- ✒️ TDS Schedule Update: Section code under which TDS was deducted must now be specifically reported.
🧾 ITR-2
📅 Notified via Notification No. 43/2025 dated 03.05.2025
Applicable for: Individuals and HUFs not having income from business or profession
🔑 Key Updates:
- ✒️ Capital Gains Segregation: Reporting split for gains before and after 23.07.2024, as per changes in the Finance Act, 2024.
- ✒️ Buyback Loss: Allowed if corresponding dividend income is reported as income from other sources, applicable post 01.10.2024.
- ✒️ Asset & Liability Reporting Threshold Increased: Disclosure required only if total income exceeds ₹1 crore.
- ✒️ Enhanced Deduction Reporting: Detailed reporting for sections like 80C, HRA (10(13A)), etc.
- ✒️ TDS Section Code: Mandatory to report TDS section codes in Schedule-TDS.
🧾 ITR-3
📅 Notified via Notification No. 41/2025 dated 30.04.2025
Applicable for: Individuals and HUFs having income from business or profession
🔑 Key Updates:
- ✒️ Capital Gain Reporting: Split based on 23.07.2024 for better transparency.
- ✒️ Buyback Loss Allowed: If matched with dividend income reported under “other sources” after 01.10.2024.
- ✒️ Asset & Liability Disclosure: Threshold for mandatory reporting raised to ₹1 crore of total income.
- ✒️ Reference to Section 44BBC: Introduced for cruise shipping business.
- ✒️ Improved Deduction Schedule: Enhanced clarity for deductions under 80C, 10(13A), etc.
- ✒️ Schedule-TDS Update: Inclusion of TDS section code made mandatory.
🧾 ITR-4 (SUGAM)
📅 Notified via Notification No. 40/2025 dated 29.04.2025
Applicable for: Individuals, HUFs, and Firms (other than LLP) opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE
🔑 Key Updates:
- ✒️ LTCG Reporting Permitted: Up to ₹1.25 lakh u/s 112A, provided there’s no loss adjustment (brought forward or carry forward).
- ✒️ Deduction Capture Enhanced: Additional fields introduced for deduction claims.
- ✒️ Schedule-TDS Updated: TDS section codes must be reported.
🧾 ITR-5
📅 Notified via Notification No. 42/2025 dated 01.05.2025
Applicable for: Firms, LLPs, AOPs, BOIs, and others not filing ITR-7
🔑 Key Updates:
- ✒️ Capital Gain Split: Reporting of capital gains now required pre/post 23.07.2024.
- ✒️ Buyback Loss Claimed: Permitted if linked dividend income shown under “other sources” post 01.10.2024.
- ✒️ Section 44BBC Referenced: For cruise ship businesses.
- ✒️ Schedule-TDS Revision: TDS section code now to be mandatorily disclosed.
🧾 ITR-6
📅 Notified via Notification No. 44/2025 dated 06.05.2025
Applicable for: Companies other than those claiming exemption under Section 11
🔑 Key Updates:
- ✒️ Capital Gains Pre/Post Split: As per 23.07.2024 cut-off date introduced in Finance Act, 2024.
- ✒️ Buyback Loss: Allowed with matching dividend income disclosure (post 01.10.2024).
- ✒️ New Business Code – 44BBC: For cruise shipping industry.
- ✒️ Schedule BP Modified (Rule 10TIA): Minimum 4% profit margin reporting for raw diamond trade.
- ✒️ Section 24(b): Enhanced tracking of interest on housing loans.
- ✒️ TDS Code Disclosure: Now mandatory in TDS schedule.
🧾 ITR-7
📅 Notified via Notification No. 46/2025 dated 09.05.2025
Applicable for: Persons including Trusts, Political Parties, Research Institutions, etc. claiming exemption under Sections like 11, 12, 10(23C), etc.
🔑 Key Updates:
- ✒️ Capital Gains Reporting: Gains to be split before and after 23.07.2024.
- ✒️ Buyback Loss Claimed: Allowed only when corresponding dividend income is reported post 01.10.2024.
- ✒️ Interest Deduction (Section 24(b)): Revised fields added for reporting.
- ✒️ TDS Schedule Modified: Now includes section code reporting.
🧾 Summary of Key Themes Across All ITRs
| Change | Details |
|---|---|
| Capital Gain Segregation | Based on 23.07.2024, in view of Finance Act, 2024 |
| Buyback Loss Claim | Allowed post 01.10.2024, only if corresponding dividend is declared |
| New Business Code (Sec 44BBC) | For cruise shipping business, introduced in multiple ITRs |
| TDS Section Code | Mandatory in Schedule-TDS in all relevant forms |
| Enhanced Deductions Reporting | For 80C, HRA, 24(b) and more |
| Asset & Liability Reporting | Threshold raised to ₹1 crore of total income for ITR-2 & ITR-3 |
You can contact team of Tax Experts to file Your ITR at 9150010300 or visit www.legalsahayak.com
With early notification of ITR forms and significant structural updates aligned with recent tax reforms, taxpayers and professionals are advised to carefully evaluate the new schedules and eligibility conditions. The emphasis on accurate reporting, especially around capital gains, TDS codes, and deductions, marks a step toward more transparent and digitally compliant tax filing.
Visit www.cagurujiclasses.com for practical courses
