Archive · 19 May 2025
ITR Forms Updated for FY25: Key Changes for Taxpayers
The Income Tax Department has updated the income tax return (ITR) forms for the financial year 2024-25 to reflect changes in tax laws.
Key updates include allowing individuals with up to ₹1.25 lakh in long-term capital gains from listed equities to use simpler ITR forms, and a split in capital gains reporting based on sale dates before or after July 23, 2024.
The reporting threshold for assets and liabilities has increased to ₹1 crore.
The last date to file ITR for individuals and those who do not have to get their accounts audited is July 31.
Income Tax Department notified all seven ITR forms for AY 2025-26.
Eligibility for ITR-1 and ITR-4 expanded for those with up to ₹1.25 lakh in long-term capital gains.
Capital gains must now be split based on sale dates before or after July 23, 2024.
LTCG tax rate on real estate: 12.5% without indexation or 20% with indexation.
Reporting of assets and liabilities threshold raised to ₹1 crore in ITR-3.
- Who
- The Income Tax Department and Indian taxpayers.
- What
- Updates to Income Tax Return (ITR) forms for the financial year 2024-25.
- When
- The changes apply to the Assessment Year 2025-26, with the forms notified in May 2024.
- Where
- India
- Why
- To reflect changes in tax laws and streamline the tax filing process.
- ITR Forms Notified
- All 7
- ITR-1 and ITR-4 Eligibility Expansion
- Taxpayers with LTCG up to ₹1.25 lakh from listed shares
- Capital Gains Reporting
- Split based on sale dates before or after July 23, 2024
- LTCG Tax Rate
- 12.5% without indexation, or 20% with indexation benefit
- Asset Reporting Threshold (ITR-3)
- ₹1 crore
- ITR Filing Deadline
- July 31
