CBDT Notifies New ITR Form 5 For 2025-26 With Key Updates

New Delhi: The Central Board of Direct Taxes (CBDT) has issued Notification No. 42/2025, dated May 1st, 2025, unveiling the brand new Income Tax Return (ITR) Form 5 for the Assessment Year 2025-26, the Income Tax Department mentioned on its professional X (previously referred to as twitter) web page.

The source of revenue tax division highlighted quite a lot of adjustments, some of the notable revisions in ITR Form 5 is the advent of a break up throughout the Schedule-Capital Gain. This new construction mandates taxpayers to file capital positive aspects earlier than and after July 23rd, 2024.

The shape now lets in the reporting of capital loss incurred on percentage buybacks. However, this allowance is conditional upon the corresponding dividend source of revenue from those buybacks being declared as “income from other sources,” specifically for transactions happening after October 1st, 2024.

Furthermore, ITR Form 5 has a brand new addition of a selected connection with the phase 44BBC of the Income Tax Act. Another key replace is the requirement to specify the Tax Deducted at Source (TDS) phase code inside of Schedule-TDS.

Recently, the Income Tax Department has offered the ‘e-Pay Tax’ function on its professional on-line portal to facilitate the taxpayers by way of easing quite a lot of processes, in keeping with the CBDT. Additionally, within the July 2024 Budget, the federal government proposed a complete evaluate of the Income-tax Act of 1961. The objective was once to make the Act concise and lucid, thereby lowering disputes and litigation.

Meanwhile, on March 25, Union Finance and Corporate Affairs Minister Nirmala Sitharaman mentioned that the brand new Income Tax Bill might be taken up for dialogue within the monsoon consultation of Parliament. Earlier on March 18, the federal government inspired the stakeholders to put up their ideas at the newly offered Income Tax Bill 2025. The Bill is these days underneath exam by way of the Select Committee for detailed attention.