Five Major Changes in ITR Forms for FY 2024-25 (AY 2025-26)

What is the new eligibility for ITR 1 and ITR 4 forms? A: Individuals with long-term capital gains (LTCG) from equity shares or mutual funds can now use ITR 1 and ITR 4 forms, provided such gains do not exceed Rs 1.25 lakh in the financial year. Q: Why is it important to specify the TDS section in ITR forms? A: Specifying the TDS section ensures accurate tax calculations and helps avoid any discrepancies during the assessment process. This applies to ITR forms 1, 2, 3, and 5. Q: How do the new capital gains tax rules affect taxpayers? A: Taxpayers need to pay close attention to the date of sale of their assets while filing ITR. The correct capital gains tax calculation depends on the sale date, especially for shares, mutual funds, property, and land. Q: What is the new asset reporting threshold? A: The asset reporting threshold has been raised from Rs 50 lakh to Rs 1 crore. Only taxpayers with gross total income exceeding Rs 1 crore are required to furnish details of assets and liabilities in their ITR. Q: How should buy-back proceeds be reported in ITR forms? A: From October 1, 2024, buy-back proceeds will be considered as deemed dividends in the hands of shareholders. The reporting requirements have been made in ITR-2 and ITR-3.

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