The Central Board of Direct Taxes (CBDT) has notified all the Income Tax Return (ITR) forms for Assessment Year 2025-26 (FY 2024-25). There is no major change in the structure of the 1 form, but several important amendments have been made in line with the provisions of the Finance Act 2024.
These include important changes like relief on small long-term capital gains (LTCG), increased threshold for reporting of assets and liabilities, and more detailed reporting of capital gains. So, if you are also going to file ITR this time, then you need to know these new rules.
ITR-1
ITR-1 will remain applicable for resident individuals whose income is up to ₹50 lakh, and whose income is from salary, one house, and other sources. Under the new rules, now tappers will also be able to report LTCG (under section 112A) up to ₹1.25 lakh in ITR-1. This is a big relief for small investors, making it easier for them to file taxes.
ITR-2
ITR-2 is for individuals who have multiple assets, foreign assets, or capital gains. The updated form now has:
LTCG before and after 23rd July 2024 has to be reported separately.
Unlisted bonds/debentures have to be shown separately as per the holding period.
Proceeds from buyback (after 1st October 2024) have to be shown at “shoe value” in “Income from other sources” and the capital gains section.
The limit for reporting assets and liabilities has now been increased to ₹1 crore (was ₹50 lakh earlier).
This change is important for those who have complex financial transactions.
ITR-3
ITR-3 is for individuals and HUFs who earn income from a business or profession. It has now been made mandatory to choose the old or new tax regime (Form 10-IE or 10-IEA)! Detailed business-related disclosures, such as profit, loss, and foreign income, will have to be given. Also, high-value transactions will now have to be reported properly.
Such as:
Cash deposits of more than ₹1 crore.
Foreign travel of more than ₹2 lakh.
Electricity expenses of more than ₹1 lakh.
Credit card bills of more than ₹10 lakh.
This rule will apply to individuals and businesses making large financial transactions.
ITR-4
ITR-4 is for taxpayers who pay estimated income tax. 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. It will make tax filing easier for small traders and professionals.
ITR-5
Tappers who have not e-verified their ITR can still print and sign the ITR-V form and send it to CPC Office, Bengaluru via speed post within 30 days. E-verification can also be done through Aadhaar OTP, Net Banking or Demat/Bank Account. The verification process has been simplified so that all taxpayers can file their returns with ease.
ITR-6
ITR-6, which was notified on 6 May 2025, is for companies that do not claim exemptions. Some important changes have been made in it:
Separate reporting of capital gains before and after 23 July 2024 has been introduced.
Buyback losses will be allowed only if the corresponding dividend income is declared after 1 October 2024.
Separate reporting provision added for cruise operators (Section 44BBC) and profits from diamond trading (minimum 4% of gross receipts).
Detailed reporting of TDS codes and Schedule BP has now been made mandatory.
This change will make tax filing more transparent for companies.
ITR-7
ITR-7, which was notified on May 9, is for entities that file returns under sections 139(4A) to 139(4D), such as charitable trusts, political parties and research institutions.
Changes in this form include:
Capital gains will have to be reported separately for pre- and post-July 23.
Losses arising from buybacks will have to be clubbed with dividend income.
Reporting of interest exemption on housing loans (Section 24(b)) will also now be mandatory.
Disclosure of TDS CEN codes has been added for better audit.