ITR Filing 2025: Key Changes in ITR Forms for FY 2024-25 (AY 2025-26)

Learn about the significant changes in ITR forms for FY 2024-25 (AY 2025-26), including wider eligibility for ITR 1 and ITR 4, new TDS section requirements, and updated capital gains tax rules.

Itr FilingCapital GainsTdsTax ReturnsAsset ReportingReal Estate NewsMay 18, 2025

ITR Filing 2025: Key Changes in ITR Forms for FY 2024-25 (AY 2025-26)
Real Estate News:For filing income tax returns for Financial Year (FY) 2024-25 (Assessment Year 2025-26), the Income Tax Department has introduced several changes to the ITR forms. These changes aim to simplify the filing process and ensure compliance with the latest tax regulations. Here are the five key changes you should be aware of: Wider eligibility for ITR 1 and ITR 4 One of the most significant changes is the expanded eligibility for ITR 1 (Sahaj) and ITR 4 (Sugam). Previously, these forms were limited to individuals with specific types of income. Now, more taxpayers can use these forms. Individuals with long-term capital gains (LTCG) from equity shares or mutual funds can file ITR using these forms, provided such gains do not exceed Rs 1.25 lakh in the financial year. This change makes the filing process more accessible for a broader range of taxpayers. TDS section must be specified Another important change is the requirement to specify the TDS (Tax Deducted at Source) section under which tax was deducted. This applies to ITR forms 1, 2, 3, and 5. Taxpayers must ensure that they have correctly mentioned the relevant TDS provision for every income on which tax was deducted. This helps in accurate tax reporting and reduces the likelihood of errors during the verification process. New capital gains tax rules integrated With the introduction of revised capital gains rules in Budget 2024, effective from July 23, 2024, taxpayers now need to pay close attention to the date of sale of their assets. Whether it’s shares, mutual funds, property, or land, the correct capital gains tax calculation hinges on the sale date. This change ensures that taxpayers are aware of the new rules and can accurately report their capital gains in their ITR forms. Asset reporting threshold raised Previously, individuals with income over Rs 50 lakh had to report assets and liabilities. However, this threshold has been increased. From FY 2024-25 onwards, only taxpayers with gross total income exceeding Rs 1 crore are required to furnish details of assets and liabilities in their ITR. This change reduces the reporting burden for a significant number of taxpayers. Reporting of buy-back proceeds as deemed dividends From October 1, 2024, the amount received on the buy-back of shares by domestic listed companies will be considered as deemed dividends in the hands of shareholders. The new rule was announced in Budget 2024. The reporting requirements have been made in the ITR-2 and ITR-3 for this. This ensures that shareholders are aware of the tax implications of buy-back proceeds and can report them accurately. These changes reflect the Income Tax Department's efforts to streamline the tax filing process and ensure compliance with the latest tax regulations. Taxpayers are advised to familiarize themselves with these changes to avoid any issues during the filing process.

Frequently Asked Questions

What are the new changes in ITR forms for FY 2024-25? A: The key changes include wider eligibility for ITR 1 and ITR 4, the requirement to specify the TDS section, new capital gains tax rules, a raised asset reporting threshold, and the reporting of buy-back proceeds as deemed dividends. Q: Who can now use ITR 1 and ITR 4 forms? A: Individuals with long-term capital gains (LTCG) from equity shares or mutual funds can use ITR 1 and ITR 4 forms, provided such gains do not exceed Rs 1.25 lakh in the financial year. Q: What is the new TDS section requirement? A: Taxpayers must specify the TDS section under which tax was deducted for every income on which tax was deducted. This applies to ITR forms 1, 2, 3, and 5. Q: What are the new capital gains tax rules? A: Revised capital gains rules introduced in Budget 2024 require taxpayers to pay attention to the date of sale of their assets, as the correct capital gains tax calculation hinges on the sale date. Q: What is the new asset reporting threshold? A: From FY 2024-25 onwards, only taxpayers with gross total income exceeding Rs 1 crore are required to furnish details of assets and liabilities in their ITR.

Answer not available

Related News Articles

India's Largest Mall Developer Announces 1:1 Bonus Shares with September 21 Record Date
Real Estate Pune

India's Largest Mall Developer Announces 1:1 Bonus Shares with September 21 Record Date

The company, a leading player in the Indian real estate market, owns properties in several cities across the country, including Ahmedabad, Lucknow, Bareilly, Bengaluru, Chennai, Pune, Raipur, Agra, and Indore.

September 6, 2024
Read Article
Norwegian Government Eases Mortgage Loan-to-Value Limits to 90%
Real Estate

Norwegian Government Eases Mortgage Loan-to-Value Limits to 90%

Norway's finance ministry has relaxed the loan-to-value mortgage ratio from 85% to 90%, allowing borrowers to put down 10% equity instead of 15% when purchasing a home.

December 4, 2024
Read Article
Imposing 18% GST on FSI Charges Could Increase Housing Prices by 10%, CREDAI Warns
real estate news

Imposing 18% GST on FSI Charges Could Increase Housing Prices by 10%, CREDAI Warns

CREDAI has written to Finance Minister Nirmala Sitharaman, expressing concerns that the proposed 18% GST on Floor Space Index (FSI) charges could lead to a 10% increase in housing prices, potentially impacting demand in the real estate market.

December 21, 2024
Read Article
Varun Dhawan Dives into Mumbai's Luxury Real Estate with Lavish Juhu Apartments
Real Estate Mumbai

Varun Dhawan Dives into Mumbai's Luxury Real Estate with Lavish Juhu Apartments

Bollywood actor Varun Dhawan has made a significant investment in Mumbai's luxury real estate market by purchasing two high-end apartments in Juhu, both with his mother and wife.

January 8, 2025
Read Article
Experts Applaud IBC's Success in Resolving Real Estate Distress
real estate news

Experts Applaud IBC's Success in Resolving Real Estate Distress

Industry experts have lauded the Insolvency and Bankruptcy Code (IBC) for its effectiveness in resolving distressed real estate projects, bringing much-needed relief to both developers and homebuyers.

February 19, 2025
Read Article
Nashik Sees 22% Increase in Apartment Sales in 2024: Credai-Liases Foras Report
real estate news

Nashik Sees 22% Increase in Apartment Sales in 2024: Credai-Liases Foras Report

The real estate market in Nashik witnessed a significant 22% surge in apartment sales in 2024, according to a report released by the Confederation of Real Estate Developers' Associations of India (Credai) and real estate data analytics firm Liases Foras.

March 9, 2025
Read Article