New Income Tax Return Forms Announced with Major Changes

The income tax department has notified all ITR forms for the 2025-26 assessment year, introducing significant changes. ITR-1 and ITR-4 can now be filed by individuals with LTCG up to Rs 1.25 lakh. The capital gains tax rationalization has been introduced, and the threshold for asset reporting increased from Rs 50 lakh to Rs 1 crore.

Devdiscourse News Desk | New Delhi | Updated: 12-05-2025 18:13 IST | Created: 12-05-2025 18:13 IST

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Country:
India

The income tax department has officially announced all seven income tax return forms for the assessment year 2025-26, introducing important changes to simplify the filing process for taxpayers.

One major amendment permits salaried individuals and those under the presumptive taxation scheme, having long-term capital gains of up to Rs 1.25 lakh, to file ITR-1 and ITR-4. Previously, these individuals were required to file ITR-2.

Additionally, for ITR forms 2, 3, 5, 6, and 7, the capital gains must now be split based on their occurrence before or after July 23, 2024. Another key change is the increased asset reporting threshold, revised from Rs 50 lakh to Rs 1 crore in ITR-3.

(With inputs from agencies.)