By JS Financial Services
The Income Tax Department has notified major updates for ITR filing in Assessment Year 2025–26 (Financial Year 2024–25). If you're a taxpayer in India, it's essential to know what's changed, who should file which form, and how to comply efficiently.
- Key Updates for AY 2025–26
The Central Board of Direct Taxes (CBDT) has introduced important changes in the ITR forms this year, particularly around capital gains reporting, tax regime selection, and compliance requirements.
Extended Deadline: For individuals and HUFs not subject to audit, the due date for filing ITRs has been extended to 15th September 2025, instead of the usual 31st July deadline. This extension reflects the time needed to adjust to updated ITR formats and disclosures.
Capital Gains Disclosure Split: Taxpayers must now report capital gains separately for transactions before and after July 23, 2024, due to revised provisions affecting long-term capital gains (LTCG). This change improves transparency and aligns with revised tax treatment on securities.
Aadhaar Requirement Tightened: Only a valid Aadhaar number can now be used for ITR filing or PAN-related processes. Aadhaar Enrolment IDs are no longer valid as per amended Section 139AA.
- ITR Form Applicability Explained
ITR-1 (Sahaj)
Best suited for resident individuals with income from salary, one house property, and other sources, along with agricultural income up to ₹5,000.
Conditions: Total income should not exceed ₹50 lakh, and LTCG under Section 112A must not exceed ₹1.25 lakh. You cannot carry forward capital losses using this form.
ITR-2
Applicable to individuals and HUFs who don't have business or professional income. This form covers those with multiple house properties, foreign income, LTCG above ₹1.25 lakh, or those looking to carry forward capital losses.
ITR-3
Meant for individuals and HUFs with income from business or profession, including freelancers, consultants, and partners in firms. This form also now requires additional disclosures for those opting out of the new tax regime via Form 10-IEA.
ITR-4 (Sugam)
Designed for residents (individuals, HUFs, or firms excluding LLPs) who choose the presumptive taxation scheme under Section 44AD, 44ADA, or 44AE.
Conditions: Total income must be up to ₹50 lakh and LTCG under Section 112A not more than ₹1.25 lakh. Like ITR-1, this form doesn't allow carry-forward of losses.
ITR-5
Applies to firms (including LLPs), AOPs, BOIs, and similar entities not required to file ITR-6 or 7.
ITR-6
For companies other than those exempt under Section 11 (e.g., charitable institutions). This year, companies must provide detailed reporting on capital gains, TDS, and sector-specific transactions.
ITR-7
Reserved for trusts, political parties, charitable institutions, and similar entities filing under special sections like 139(4A) or 139(4C).
- Important Compliance Dates for AY 2025–26
Individuals and HUFs not subject to audit: 15th September 2025
Businesses requiring audit: 31st October 2025
Businesses involved in international/transfer pricing: 30th November 2025
Belated or Revised Return: 31st December 2025
Updated Return (ITR-U): 31st March 2030
- Expert Guidance & Filing Tips
1. Choose the Right Form
If you have income below ₹50 lakh and LTCG under ₹1.25 lakh, ITR-1 or ITR-4 may be suitable. But if your profile includes capital loss, multiple properties, foreign income, or non-presumptive business income, ITR-2 or ITR-3 is a must.
2. Report Capital Gains Accurately
If you sold equity shares or mutual funds during FY 2024–25, be sure to separate transactions into pre- and post-July 23, 2024. This impacts tax rates and reporting format.
3. Select Your Tax Regime Thoughtfully
By default, the new tax regime applies. If you want to continue with the old regime, individuals without business income can opt out directly in the ITR. Business/professional income earners must file Form 10-IEA.
4. Aadhaar Compliance
Ensure that you are using your actual Aadhaar number while filing. Aadhaar enrolment numbers are no longer accepted and will invalidate your return.
5. Don't Wait Until the Last Minute
Missing deadlines can cost you penalties, interest, and the ability to carry forward certain tax benefits like capital losses.
- Utilities for ITR Filing
The Income Tax Department has already released updated utilities for ITR-1, ITR-4, ITR-2, and ITR-3. You can download the latest Excel and Java versions from www.incometax.gov.in.
- Get Expert Help from JS Financial Services
Tax forms are changing, but with JS Financial Services, filing doesn't have to be confusing. We offer personalised ITR guidance based on your income, deductions, and goals — ensuring accurate reporting, maximised refunds, and zero compliance stress.
Email: info@jsfinancials.in
Call/WhatsApp: +91 73400 02251
Visit: www.jsfinancials.in
JS Financial Services — Go Beyond the Ordinary. File Right. File Smart.
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