Tax Update

    New ITR Forms for FY 2024-25: What You Need to Know

    Updated June 2025
    ITR Forms 2024-25

    Overview

    The Income Tax Department has released new ITR (Income Tax Return) forms for the Financial Year 2024-25 (Assessment Year 2025-26), incorporating several changes announced in the 2024 Budget. These updates aim to simplify the filing process and expand eligibility for simpler forms, especially for salaried individuals and small business owners.

    Here's a summary of the key changes, eligibility criteria, and important tips for filing your ITR this year.

    Key Changes in ITR Forms for FY 2024-25

    • Expanded eligibility for ITR-1 and ITR-4: Taxpayers with long-term capital gains (LTCG) from listed shares and equity mutual funds up to Rs 1.25 lakh can now use ITR-1 or ITR-4, making filing easier for small investors.
    • Reporting capital gains by date: Capital gains must be reported separately based on whether the sale occurred before or after July 23, 2024, due to new tax rules.
    • Aadhaar enrolment ID no longer accepted: Only actual Aadhaar numbers are valid for PAN application and ITR filing.
    • Asset reporting threshold raised: You now need to report assets and liabilities only if your gross total income exceeds Rs 1 crore (previously Rs 50 lakh).
    • More detailed TDS reporting: Taxpayers must mention the TDS section for non-salary income.
    • Disability deduction documentation: Claiming deductions under Section 80DD or 80U now requires the acknowledgement number of the disability certificate.

    Which ITR Form Should You File?

    • ITR-1 (Sahaj): For resident individuals with income up to Rs 50 lakh from salary, one house property, and other sources. Now includes LTCG up to Rs 1.25 lakh.
    • ITR-2: For individuals/HUFs with income from capital gains, more than one house property, or foreign assets.
    • ITR-3: For individuals/HUFs with business or professional income.
    • ITR-4 (Sugam): For residents (individuals, HUFs, firms other than LLPs) with presumptive business/professional income up to Rs 50 lakh. Now includes LTCG up to Rs 1.25 lakh.
    • ITR-5: For firms, LLPs, AOPs, BOIs, etc.
    • ITR-6: For companies (except those claiming exemption under Section 11).
    • ITR-7: For trusts, political parties, and certain institutions.

    Why Should You File ITR?

    • To claim tax refunds and carry forward losses.
    • For visa and loan applications.
    • To comply with legal requirements and avoid penalties.
    • To report high-value transactions and foreign assets, if any.

    Checklist Before Filing Your ITR

    • Collect all relevant documents: PAN, Aadhaar, Form 16, bank statements, investment proofs.
    • Choose the correct ITR form based on your income sources.
    • Calculate your taxable income and apply eligible deductions.
    • Verify your bank account details for refunds.
    • Disclose any foreign assets or income, if applicable.
    • File electronically and complete e-verification.
    • Keep all documents for future reference.

    Important Deadlines

    • ITR filing due date: July 31, 2025 (for most individuals)
    • Belated return: December 31, 2025
    • Updated return: March 31, 2027

    Useful Resources

    Tip: Always double-check which ITR form applies to your situation and keep up with the latest tax updates to avoid mistakes and penalties.