CBDT has officially notified the revised Income Tax Return (ITR) forms from ITR-1 to ITR-5 for AY 2025–26, applicable for income earned during FY 2024–25. These forms were released via Notifications No. 40/2025 to 43/2025 dated between 29 April and 3 May 2025, amending Rule 12 of the Income-tax Rules, 1962.
Let’s break down what’s changed and who should file which ITR form this year.
✅ Key Highlights Across Forms
- Split Capital Gains reporting for transactions before/after 23.07.2024 (post-Finance Act, 2024).
- Buyback loss now allowed only if related dividend income is shown as “income from other sources”.
- TDS Section Code reporting made mandatory in Schedule-TDS.
- Asset and liability threshold increased to ₹1 crore of total income.
- Deductions now reported in more granular detail (like 80C, 10(13A), 80CCD).
📘 ITR-1 (Sahaj): For Salaried Individuals
Eligibility:
- Resident individuals (not Ordinarily Resident)
- Total income up to ₹50 lakh
- Income from salary, one house property, other sources (like interest), and LTCG up to ₹1.25 lakh under section 112A
- Agricultural income up to ₹5,000
Not eligible if:
- Director in a company
- Holding unlisted shares
- Foreign assets/income
What’s New:
- New checkbox for opting out of new tax regime u/s 115BAC(6)
- Foreign travel expense disclosure if return filed under Seventh Proviso to Sec 139(1)
📘 ITR-2: For Capital Gains & Foreign Asset Holders
Eligibility:
- Individuals/HUFs not having income from business or profession
- Includes those with capital gains, multiple properties, foreign assets, dividend income
Key Changes:
- Capital gain bifurcation (before/after 23.07.2024)
- Share buyback loss conditionally allowed (post 01.10.2024)
- Detailed deduction fields for 80C, 10(13A)
- Revised Schedule-TDS with mandatory section codes
📘 ITR-3: For Business/Professional Income
Eligibility:
- Individuals/HUFs earning from proprietary business or profession
What’s New:
- Same capital gains split and buyback rules
- Addition of Section 44BBC (presumptive taxation for cruise business)
- TDS code field added
- Enhanced AL (Assets & Liabilities) reporting
📘 ITR-4 (Sugam): For Presumptive Income
Eligibility:
- Resident Individuals, HUFs, and Firms (other than LLPs)
- Income under presumptive schemes u/s 44AD, 44ADA, 44AE
What’s New:
- Allowed to file even with LTCG up to ₹1.25 lakh under 112A, provided no carry-forward of loss
- New deduction reporting fields for 80CCD(1), 80E, 80EEA
- Schedule TDS/TCS revised for section code mapping
📘 ITR-5: For Firms, LLPs, AOPs, BOIs
Eligibility:
- Firms, LLPs, AOPs, BOIs, and others (not individual/HUF)
What’s New:
- Same capital gain breakup
- Section 44BBC added
- Buyback loss allowed only with corresponding dividend income
- TDS section code field included
📌 Important Notifications:
Notification No. 40/2025 – ITR-1 & ITR-4
Notification No. 43/2025 – ITR-2
Notification No. 41/2025 – ITR-3
Notification No. 42/2025 – ITR-5
Download the PDFs
Want to view the forms? Access ITR-1 to ITR-5 PDF copies directly from our portal or the Income Tax e-Filing website.
⚠️ Final Advice from EfileTax
Choosing the right ITR form is not just a compliance formality—it impacts refund speed, avoids scrutiny, and ensures smooth processing. With so many structural changes this year, file with caution or get help from a tax expert.
Need help selecting your ITR form? Contact us at efiletax.in or DM us on X @efile_tax.