The key changes have been introduced in the new Income Tax Return (ITR) Forms 1 to 7, as notified by the CBDT for the Assessment Year 2025-26. These ITR forms will be used to report income earned during the Previous Year 2024-25. Unlike previous years, the forms have been notified with a delay, prompting concerns about possible deadline extensions.

The changes discussed in this article include amendments to Rule 12 of the Income-tax Rules, the Finance (No. 2) Act 2024, and new compliance requirements.

The key changes in the ITR Forms for AY 2025-26 are as follows:

• Simplified Eligibility for ITR-1 and ITR-4 for Taxpayers with LTCG up to ₹1.25 Lakhs Under Section 112A
• Aadhaar Enrolment ID is No Longer Accepted for ITR Filing or PAN Application
• Detailed Disclosure Required for Opting Out of the New Tax Regime Under Section 115BAC
• New Reporting Enabled for Cruise Shipping Income Under Presumptive Taxation Section 44BBC
• Capital Gains Tax Rules Revised for Transfers made on or after 23rd July 2024
• Gains from Unlisted Bonds and Debentures Post 23rd July 2024 to be Reported as STCG Under Section 50AA
• Buy-Back Proceeds Post 1st October 2024 to be Taxed as Deemed Dividend, Not Capital Gains
• Schedule for Section 80-IC Deduction Removed as Eligibility Period has Expired
• New Column Added to Report All Types of Disability Certificates Under Sections 80DD and 80U
• Section 115U Pass-through Income Now Reportable Under Schedule PTI
• Disclosure Expanded in Schedule 5A to Cover Audits Under All Tax and Applicable Laws
• Asset and Liability Disclosure in Schedule AL now Mandatory only if Total Income Exceeds ₹1 Crore
• TDS Section Reference Is now Mandatory in the Tax Payment Schedule of All ITR Forms
• ITR-6 Updated to Report Profits from Raw Diamond Sales Under Safe Harbour Rules