New ITR forms are out. Filing just got personal

Filing income tax returns isn't exactly anyone's idea of fun. But this year, the paperwork might feel a bit different—streamlined in some places and a touch more detailed in others.

The Central Board of Direct Taxes (CBDT) has rolled out changes across all ITR forms for Assessment Year 2025-26 (FY 2024-25). While some updates are genuinely helpful, others demand sharper disclosures and clearer records.

What's new and why it matters

1. Capital gains split by date

Due to amendments effective July 23, 2024, taxpayers now have to report capital gains separately for transactions done before and after this date. This applies to stocks, mutual funds, and even property sales. If you're booking gains, you'll need to track sale timelines more precisely.

2. Simpler ITR-1 and ITR-4 access

If your capital gains from listed equity or equity mutual funds are below Rs 1.25 lakh—and you have no carry-forward losses—you can now use ITR-1 or ITR-4. This is a big win for small retail investors who earlier had to fill more complex ITR-2 form.

3. TDS section reporting made compulsory

Tax deducted at source (TDS) now requires mentioning the specific section under which the deduction happened (like Section 194J for professional fees). This improves clarity for both taxpayers and the tax department.

4. Bank account disclosures tightened

Dormant accounts are now excluded, but all active Indian bank accounts must be disclosed. If you thought your side hustle's secondary account didn't matter—it now does.

5. Asset and liability threshold raised

Only those with income above Rs 1 crore now need to disclose personal assets and liabilities. Previously, the threshold was Rs 50 lakh.

6. Buybacks as dividends

From October 1, 2024, buybacks from domestic listed companies are treated as deemed dividends and must be reported under "Income from Other Sources".

7. Aadhaar enrolment ID removed

You'll now need your actual Aadhaar number—no more using the enrolment ID as a workaround.

This year's ITR updates reflect two things: digitisation and accountability. If you've been filing casually or skipping the fine print, 2025 may not let you off the hook. But if you're organised, the process just got a tad smoother.

Disclaimer: This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.