Income Tax Return Filing AY 2025-26 has been simplified following updates introduced by the Income Tax Department after Budget 2024. The newly notified ITR forms for Financial Year 2024-25 incorporate several policy changes aimed at improving filing accuracy and widening the taxpayer base. Here’s everything you need to know before submitting your ITR this year.
Key Updates in Income Tax Return Filing AY 2025-26
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Simpler Forms for Small Investors
Taxpayers with LTCG up to ₹1.25 lakh from equity or mutual funds can now use ITR-1 (Sahaj) or ITR-4 (Sugam). This simplifies filing for lakhs of small investors. -
Aadhaar Enrolment ID Not Allowed
Only the actual Aadhaar number is accepted now. Enrolment ID fields have been removed from all ITR forms. -
Capital Gains Reporting Format Changed
Gains must be reported separately for transactions before and after July 23, 2024, as per the new computation rules. -
Standardised Income Reporting
Income from dividends, interest, etc., under ‘Other Sources’ is now reported uniformly across all ITRs, aiding better cross-verification. -
Mandatory Tax Regime Declaration
Taxpayers must clearly mention whether they’re opting for the old or new tax regime in the return. -
More Detailed Foreign Income Reporting
ITR-2 and ITR-3 now include expanded fields for reporting foreign income and assets, improving international compliance. -
TDS Section Codes Required
In Schedule-TDS, taxpayers must mention the section code for each TDS entry to ensure better credit matching. -
Agricultural Income Details
You must now provide the district and PIN code of the land to claim exemption on agricultural income. -
Updated Deduction Schedule (VI-A)
Reflects Budget 2024 updates – including revised limits for deductions under Sections 80C, 80D, etc.
These updates to the Income Tax Return Filing AY 2025-26 are designed to bring better structure, more automation, and increased compliance to India’s tax filing ecosystem. Taxpayers should carefully review the new forms and ensure accurate and timely submissions based on their income type, tax regime, and eligibility.
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