The Govt updated ITR forms for FY 2024–25 with changes in capital gains reporting, TDS disclosure and simplified filing norms. Individuals who are earning long-term capital gains up to Rs 1.25 lakh can now use the simpler ITR-1 and ITR-4 forms.
Taxpayers need to report capital gains separately for assets sold before and after July 23, 2024, as per the new tax rules in the latest Union Budget.
Disclosing the exact section under which tax was deducted at source (TDS) is now compulsory. This applies across ITR-1, 2, 3 and 5 and ensures better transparency in tax deductions.
ITR-3 now asks for more detailed information under various income sources like salary, house property, and capital gains. Taxpayers will need to provide a clearer breakdown of their income, making accurate reporting more important.
If two people own a property together, they can now use the simpler ITR-1 or ITR-4 forms—as long as they meet other conditions. This change helps make tax filing easier for individuals who co-own real estate.
ITR-5 will now be pre-filled with data from various sources like TDS and PAN-linked accounts. This move is aimed at reducing manual errors and speeding up the filing process.
A new format in Schedule 112A has been introduced for better reporting of equity share transactions. This applies to listed shares where capital gains tax is applicable.
There are no changes in eligibility criteria for ITR forms this year. Taxpayers must still pick forms based on income source, business activity and residential status.
These changes aim to improve compliance, clarity and convenience for taxpayers, while strengthening data tracking for authorities. Early filing with accurate details is now more important than ever.
