New ITR Form 5 For AY 2025-26 Notified; Check Key Changes This Year And Know Who Needs To File It

New Delhi: The Central Board of Direct Taxes (CBDT) has notified the brand new Income Tax Return (ITR) Form 5 for the overview yr (AY) 2025-26 with some key updates. 

The Income Tax Department has offered a number of adjustments within the new I-T go back shape, it stated on an X put up on Saturday.

A significant alternate comes to a bifurcation in Schedule-Capital Gain, requiring taxpayers to one at a time file capital good points sooner than and after July 23, 2024.

The shape additionally allows reporting of capital loss on percentage buybacks, matter to express prerequisites.

According to different main updates in I-T Form 5, “Capital loss on share buyback is allowed if corresponding dividend income is shown as income from other sources (post 01.10.2024); reference of sec 44BBC (cruise biz) added; and TDS section code to be reported in Schedule-TDS”.

The new ITR Form 5 features a particular connection with Section 44BBC of the Income Tax Act. This segment offers with the presumptive taxation of source of revenue for positive companies.

Also, taxpayers will have to now specify the Tax Deducted at Source (TDS) segment code throughout the Schedule-TDS of the go back shape.

This alternate seeks to toughen transparency and make sure correct classification of TDS deductions.

Earlier, CBDT notified the source of revenue tax go back bureaucracy ITR-1 and ITR-4 for the monetary yr 2024-25 and the overview yr 2025-26. The returns for earning earned right through the monetary yr from April 1, 2024, to March 31, 2025, need to be filed the use of the brand new bureaucracy.

A significant alternate within the ITR bureaucracy this yr is that ITR-1 (SAHAJ) will also be filed for notifying long-term capital good points (LTCG) beneath segment 112A.

This is matter to the situation that the LTCG is no more than Rs 1.25 lakh, and the source of revenue tax assessee has no loss to hold ahead or activate beneath the capital good points head.

The notification additionally stipulates that during instances the place source of revenue tax assesses have opted out of the brand new source of revenue tax regime in AY 2024–25, they will have to claim and choose to both proceed or opposite the choice.

Those who’ve opted out of the brand new source of revenue tax regime for the primary time in AY 2025–26 will have to furnish Form 10-IEA acknowledgement main points.

Additionally, there will have to even be a rationalization for the past due submitting of Form 10-IEA.