Filing your Income Tax Return (ITR) for Assessment Year (AY) 2025–26 may soon begin as the Income Tax Department has officially notified the return forms. If you earned income during Financial Year (FY) 2024–25 (i.e. from April 1, 2024 to March 31, 2025), it’s time to get ready for your return filing.
Here’s what’s new and important this year.
ITR Filing for AY 2025–26: What’s New?
The Central Board of Direct Taxes (CBDT) has released ITR Forms 1 to 5, bringing some key changes that taxpayers should note:
ITR-1 (Sahaj)
- Who can file: Resident individuals earning up to ₹50 lakh from salary, one house property, and other sources (like interest).
- New update: Now allows reporting of long-term capital gains (LTCG) up to ₹1.25 lakh under Section 112A (such as gains from shares and mutual funds).
ITR-2
- Who can file: Individuals and HUFs not having income from business or profession.
- Key changes:
- Separate reporting of capital gains before and after July 23, 2024.
- Capital loss from share buybacks allowed from October 1, 2024.
- Asset and liability reporting threshold raised from ₹50 lakh to ₹1 crore.
- Mandatory reporting of TDS section codes.
ITR-3
- Who can file: Individuals and HUFs with income from business or profession.
- What’s new:
- Enhanced reporting for capital gains.
- Segregated capital gain entries based on transaction date (before and after July 23, 2024).
ITR-4 (Sugam)
- Who can file: Individuals, HUFs, and firms (other than LLPs) with income up to ₹50 lakh under presumptive taxation (Sections 44AD, 44ADA, 44AE).
- New inclusion: LTCG reporting up to ₹1.25 lakh under Section 112A.
ITR-5
- Who can file: LLPs, AOPs, BOIs, and other non-individual entities not filing ITR-7.
- Purpose: Meant for entities not covered under ITR-1 to ITR-4.
Important Dates to Remember
- Expected Start Date for ITR Filing: Mid-May 2025
- Last Date for Non-Audit Cases: July 31, 2025
Tips Before Filing Your ITR
- Check Form Eligibility: Don’t use the wrong form. Match your income type with the applicable ITR.
- Keep Documents Ready: Collect Form 16, AIS (Annual Information Statement), TDS certificates, capital gains reports, etc.
- Use New AIS/TIS Data: Match your reported income with the data available on the income tax portal.
- File Early: Avoid last-minute rush and errors.
Final Words
The earlier notification of ITR forms this year is a big win for taxpayers and professionals alike. It gives you enough time to prepare and file your returns accurately. Whether you’re a salaried employee, business owner, or investor, make sure you understand the updated ITR form that applies to you.
Frequently Asked Questions (FAQs) on ITR Filing for AY 2025–26
1. When will ITR filing for AY 2025–26 start?
ITR filing is expected to start by mid-May 2025, as the Income Tax Department has already notified the ITR forms.
2. What is the last date to file ITR for AY 2025–26?
For individuals not requiring an audit, the due date is July 31, 2025. For audited cases, the deadline is likely October 31, 2025.
3. Which ITR form should I use?
Here’s a quick guide:
- ITR-1: Salary, one house property, other income (income ≤ ₹50 lakh)
- ITR-2: Capital gains, multiple properties, foreign income/assets
- ITR-3: Business or profession income
- ITR-4: Presumptive income under Sections 44AD/44ADA/44AE
- ITR-5: For LLPs, AOPs, BOIs, etc.
4. Can I file ITR-1 if I have capital gains?
Yes, you can now use ITR-1 if your LTCG (long-term capital gains) under Section 112A are up to ₹1.25 lakh.
5. What are the key changes in ITR-2?
- Split reporting of capital gains before/after July 23, 2024
- Capital loss allowed from share buybacks post-October 1, 2024
- Asset reporting threshold increased to ₹1 crore
- Mandatory TDS section codes
6. Where can I download the ITR forms?
You can download ITR forms from the official website:
👉 https://www.incometax.gov.in
7. Is it mandatory to file ITR if I have no taxable income?
No, it’s not mandatory. But it is advisable to file for record-keeping, visa processing, claiming refunds, or carrying forward losses.
8. What documents should I keep ready before filing ITR?
- PAN & Aadhaar
- Form 16
- AIS (Annual Information Statement)
- Bank statements
- TDS certificates
- Capital gains report (if any)
- Investment proof (for deductions)
9. What if I miss the July 31 deadline?
You can still file a belated return until December 31, 2025, but with a late fee under Section 234F.
Stay tuned to Banking Insights for step-by-step filing guides and tax-saving tips in the coming weeks!