ITR forms AY 2025-26
CBDT Releases ITR-1 to ITR-7 for AY 2025–26: Complete Overview of Key Changes and Notifications
Author: Puneet kumar
The Central Board of Direct Taxes
(CBDT) has officially notified all Income Tax Return (ITR) forms—ITR-1 to
ITR-7—for Assessment Year 2025–26, applicable to Financial Year 2024–25.
These updated ITR forms reflect the recent amendments introduced under the Finance
Act, 2024, along with stricter disclosure requirements and new provisions
regarding capital gains and buyback losses.
If you are a taxpayer or a finance
professional, here’s a detailed breakdown of changes across all ITR forms to
ensure a smooth filing experience.
✅ ITR-1 (SAHAJ): For Resident Individuals with Simple Incomes
Notification No. 40/2025 | Dated: 29.04.2025
Eligible for: Resident individuals (except Not Ordinarily Resident) earning up to ₹50 lakh from salary, one house property, and other sources (excluding winnings from lotteries, racehorses, etc.)
Key Changes:
- Capital Gains Inclusion: Long-term capital gains up to ₹1.25 lakh under
Section 112A now allowed.
- Enhanced Deduction Reporting: Streamlined structure for deductions claimed under
Chapter VI-A.
- TDS Details Update:
Section codes for TDS deductions must be clearly reported.
✅
ITR-2: For Individuals and HUFs without Business Income
Notification No. 43/2025 | Dated:
03.05.2025
Eligible for: Individuals and Hindu Undivided Families (HUFs) without
business or professional income.
Key Changes:
- Capital Gains Split:
Reporting mandated for gains before and after 23rd July 2024.
- Buyback Loss Reporting: Allowed from 1st October 2024, if related
dividend income is declared.
- Threshold Raised:
Asset and liability disclosures now mandatory only if total income exceeds
₹1 crore.
- Mandatory TDS Code Disclosure in TDS schedules.
✅
ITR-3: For Professionals and Business Owners
Notification No. 41/2025 | Dated:
30.04.2025
Eligible for: Individuals and HUFs with income from business or
profession.
Key Changes:
- Similar updates as ITR-2 regarding capital gains,
buyback losses, and TDS section codes.
- Reference to Section 44BBC introduced for cruise shipping industry.
- Expanded and clearer deduction schedules for common
sections like 80C, 10(13A).
✅
ITR-4 (SUGAM): Presumptive Income Tax Filers
Notification No. 40/2025 | Dated:
29.04.2025
Eligible for: Individuals, HUFs, and firms (non-LLP) under Sections
44AD, 44ADA, 44AE.
Key Changes:
- Capital Gains under Section 112A (up to ₹1.25 lakh) allowed with conditions.
- New fields
for better deduction disclosure.
- Mandatory inclusion of TDS section codes.
✅
ITR-5: For LLPs, Firms, BOIs, AOPs
Notification No. 42/2025 | Dated:
01.05.2025
Eligible for: LLPs, firms, Association of Persons (AOPs), and others not
filing ITR-7.
Key Changes:
- Capital Gain bifurcation around 23.07.2024.
- Buyback Loss Claiming
permitted if linked to dividend income post-01.10.2024.
- Section 44BBC
(Cruise shipping income) referenced.
- TDS codes made compulsory in Schedule-TDS.
✅
ITR-6: For Companies Not Claiming Exemption Under Section 11
Notification No. 44/2025 | Dated:
06.05.2025
Eligible for: Companies excluding those claiming exemption under Section
11.
Key Changes:
- New business code introduced (44BBC) for cruise-related businesses.
- Rule 10TIA Update:
Reporting 4% minimum profit margin for raw diamond trade.
- Section 24(b):
Enhanced fields for tracking interest on housing loans.
- Capital Gains & Buyback Losses: Same reporting norms as ITR-2/3/5.
✅
ITR-7: For Trusts, Political Parties, Institutions under Exemptions
Notification No. 46/2025 | Dated:
09.05.2025
Eligible for: Trusts, research institutions, political parties,
universities, etc., claiming exemption under Sections 11, 12, 10(23C),
and others.
Key Changes:
- Capital gains reporting split at 23.07.2024.
- Buyback losses allowed if corresponding dividend income is shown (post
01.10.2024).
- Interest Deduction (Sec 24(b)) reporting fields improved.
- TDS section code
inclusion mandatory.
📌
Common Themes & Takeaways Across All ITRs for AY 2025–26
|
Change |
Details |
|
Capital Gains Segregation |
Split reporting pre/post
23.07.2024 as per Finance Act, 2024 changes |
|
Buyback Loss Provision |
Allowed only if dividend income is
declared (applicable after 01.10.2024) |
|
TDS Section Code Requirement |
Now mandatory in all applicable
forms |
|
New Business Code – 44BBC |
Introduced for the cruise shipping
industry |
|
Enhanced Deduction Schedules |
Better clarity under Sections 80C,
HRA (10(13A)), and 24(b) |
|
Asset & Liability Threshold
Raised |
Disclosure required only if total
income exceeds ₹1 crore |
🧾
Final Words
Taxpayers must familiarize
themselves with these changes before filing their ITRs for AY 2025–26. The
inclusion of granular TDS details, stricter capital gain
classifications, and industry-specific disclosures like cruise shipping
income reflect CBDT's push for enhanced transparency and compliance.
Stay tuned with AirFinac.com for more such tax updates, return
filing hacks, and budget analysis.
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DISCLAIMER
Airfinac.com, its author/writer and associates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.