Taxmann's Analysis | What's New?—ITR Forms [Assessment Year 2025-26]

The CBDT has notified key changes to Income Tax Return (ITR) Forms 1 through 7 for Assessment Year 2025–26, which will be used to report income from the Previous Year 2024–25. The forms were notified with a delay, raising questions about possible deadline extensions. Major changes include simplified eligibility criteria for ITR-1 and ITR-4 for taxpayers with long-term capital gains up to ₹1.25 Lakhs under Section 112A, and removal of Aadhaar Enrolment ID acceptance for ITR filing or PAN applications. Taxpayers opting out of the new tax regime under Section 115BAC must now provide detailed disclosure. New reporting provisions cover cruise shipping income under Section 44BBC presumptive taxation rules. Capital gains taxation has been revised for transfers made on or after 23rd July 2024, with gains from unlisted bonds and debentures now reported as short-term capital gains under Section 50AA. Buy-back proceeds received after 1st October 2024 are taxed as deemed dividends rather than capital gains. Additional changes include removal of the Section 80-IC deduction schedule, expanded disability certificate reporting under Sections 80DD and 80U, and new Schedule PTI for Section 115U pass-through income. Asset and liability disclosure in Schedule AL is now mandatory only when total income exceeds ₹1 Crore. ITR-6 has been updated to report profits from raw diamond sales under safe harbour rules.