New ITR Forms released for AY 2025-26 | What Has Changed?

For most taxpayers, it is not vital to know which ITR form to select, as EZTax.in will automatically select the correct ITR for you; however, this document generally offers you an indication of what information the ITD requires from taxpayers.

This document covers

1. What are the Changes to ITR Forms for AY 2025-26?
2. When to choose ITR-1
3. When to choose ITR-2
4. When to choose ITR-3
5. When to choose ITR-4

1. What are the changes to ITR Forms for AY 2025-26?

1. Disclosure of Long-Term Capital Gains (ITR -1 & ITR-4)
   
   
   • W.e.f FY 2024-25 (AY 2025-26), the taxpayers can disclose long term capital gains on shares or mutual funds on which STT is paid in ITR 1 and ITR 4.
   • The taxpayers need to report total Sale consideration, cost of acquisition and long-term capital gain in ITR 1 and ITR 4 upto a long-term capital gain of Rs 1,25,000 which is exempt.
   • However, if the long-term capital gain is more than Rs 1,25,000, the taxpayers are required to file ITR 2 or ITR 3. Also, if the taxpayers wants to carry forward the long-term capital loss, the taxpayers cannot file ITR 1 or ITR 4.
   NOTE

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Earlier (Upto AY 2024-25), the taxpayers were required to file ITR 2 or ITR 3 if they have capital gains irrespective of capital gain amount.

2. Opting for Old Tax Regime or New Tax Regime (ITR -4)
   
   W.e.f FY 2024-25 (AY 2025-26), the taxpayers are required to provide the detailed disclosure regarding opting for New Tax Regime or Old Tax regime.
   
   
   • If the taxpayers want to opt for Old Tax Regime in FY 2024-25 AY 2025-26), the taxpayers are required to furnish Form 10IEA acknowledgment number and date of filing for AY 2024- 25 (if opted for old regime in AY 2024-25) or furnish the Form 10IEA for AY 2025-26 and disclose the acknowledgement number and date of filing.
   • If the taxpayer has filed ITR 1 or ITR 2 for AY 2024-25 and filing ITR 4 in AY 2025-26, the taxpayers are required to furnish Form 10IEA for AY 2025-26 and disclose the acknowledgement number and date of filing.
   • If the taxpayer opted for Old tax regime in AY 2024-25 and wants to opt for New Tax Regime in AY 2025-26, the taxpayer is required to file Form 10IEA and furnish date of acknowledgment number and date of filing.
   
   
3. Disclosure of Bank Accounts ( ITR- 1,2,3,4)
   
   The taxpayers are required to include all the Indian bank accounts including demat accounts from FY 2024-25 (AY 2025-26). The dormant accounts can be excluded. The taxpayer can select one bank account for refund credit.
4. 44AD/44ADA (ITR-3 & ITR-4)
   
   Until AY 2024-25, the threshold of Rs 75 lakhs for opting section 44ADA is applicable only if the turnover in digital mode is more than 95% of total turnover. W.e.f FY 2024-25(AY 2025-26), the threshold of Rs 75 lakhs for opting 44ADA is applicable if the turnover in digital mode and turnover in any other mode is more than 95% of total turnover.
5. TDS details other than Salary (ITR 1, ITR-3 & ITR 4)
   
   W.e.f FY 2024-25 (AY 2025-26), the taxpayers are required to report the section under which TDS is deducted while claiming TDS on any other incomes except Salary.
6. Opting for Old Tax Regime or New Tax Regime (ITR-3)
   
   The option of opting for old tax Regime in ITR 3 is expanded by Income Tax Department.
   
   
   1. The taxpayer can opt for old tax regime by filing Form 10IEA (Having Business or Profession)
      
      
      • Opted for Old tax regime in AY 2024-25
        
        
        • If the taxpayer has opted for old tax regime in AY 2024-25, he needs to furnish Form 10IEA acknowledgement number and date of filing
        • If the taxpayer wants to continue with old tax regime in AY 2025-26, then he no need to file Form 10IEA again.
        • If the taxpayer wants to opt for New Tax regime in AY 2025-26, then he needs to file Form 10IEA in AY 2025-26 and furnish 10IEA acknowledgement number and date of filing
      • Opted for New tax Regime in AY 2024-25
        
        
        • If the taxpayer has opted for New tax regime in AY 2024-25 and wants to continue the same in AY 2025-26, no need to file Form 10IEA again.
        • If the taxpayer has opted for New tax regime in AY 2024-25 and wants to opt for old tax regime in AY 2025-26, he needs to file Form 10IEA and furnish Form 10IEA acknowledgement number and date of filing.
      • If the taxpayer has filed ITR 1 or ITR 2 or ITR 3 in AY 2024-25 without requirement of Form 10-IEA for AY 2024-25
        
        
        • If the taxpayer wants to opt for New Tax Regime for AY 2025-26, No need to file any form
        • If the taxpayer wants to opt for Old Tax Regime for AY 2025-26, you need to file form 10IEA and date of acknowledgment.
   2. By exercising the option in the return of income only (form 10IEA is not applicable)
      
      
      • If the taxpayer wants to opt for New /Old tax regime, no need to file Form 10IEA. The taxpayer needs to select in ITR only
7. Disclosure of Assets and Liabilities
   
   W.e.f AY 2025-26, the taxpayers are required to disclose the assets and liabilities only if the Net taxable income exceeds Rs 1 Crore. Until AY 2024-25, the disclosure is required if the net taxable income exceeds Rs 50 lakhs
8. Breakup of Capital gains before 23rd July and after 23rd July 2024 (ITR-3)
   
   Budget 2024 has introduced changes with respect to taxation of short-term capital gains, long term capital gains and Indexation. The ITR -3 Form has incorporated all the changes for the taxation of STCG and LTCG on before 23rd July 2024 and on or after 23rd July 2024.
9. Capital Loss on Buy Back of Shares (ITR-3)
   
   Option to claim Capital loss on buy back of shares on or after 01st Oct 2024 is provided in Schedule CG. This can be claimed only if Dividend income u/s 2(22)(f) is offered in Income Tax Return. This is applicable from AY 2025-26
10. Disability of self u/s 80U and dependant u/s 80DD (ITR-3)
    
    The taxpayers are required to disclose the amount of deduction u/s 80U and 80DD w.e.f AY 2025-26 in ITR 3. Earlier the amount of deduction is automatically taken by system.
11. Disclosure of Dividend income from buy back of shares (ITR-3)
    
    Dividend income on buy back of shares is taxable w.e.f 01st Oct 2024. Now the taxpayers are required to disclose dividend on buyback of shares u/s 2(22)(f) in ITR-3. The taxpayers are also required to provide quarterly breakup of dividend.
12. Portuguese Civil Code – Section 5A (ITR-3)
    
    W.e.f AY 2025-26, the taxpayers are required to disclose whether the books of accounts of spouse is required to be audited under any other provisions of Income tax act or any other act apart from section 44AB and 92E. Until AY 2024-25, the taxpayer is required to disclose only if the books of accounts of spouse are audited u/s 44AB and 92E
13. Option for opting Section 44BBC (ITR-3)
    
    Budget 2024 has introduced special provisions for presumptive taxation for non residents engaged in business of operation of cruise ships u/s 44BBC. ITR-3 has references to Section 44BBC w.e.f AY 2025-26

2. When to choose ITR-1 (Released on 29th April 2025)

1. For Individuals being a resident (other than not ordinarily resident) having a total income up to Rs. 50 Lakh
2. Having Income from Salaries, one house property (single ownership), interest income, Family pension income etc.
3. Having long Term Capital Gains upto Rs 1,25,000 on Shares or Mutual Funds on which STT is paid.
4. Agricultural income up to Rs. 5000/-
5. Not a director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head "from House Property".
6. Do not use this form if you have a sale of Cryptos / VDAs, Sale of property, debt mutual funds, unlisted shares or any other assets except shares or mutual funds on which STT is paid and long term capital gain is upto Rs 1.25 lakh.
7. Do not use this form even if you want to carry forward long-term capital loss on shares or mutual funds on which STT is paid

3. When to choose ITR-2 (Yet to be notified for AY 2025-26)

For Individuals, HUF being a resident, RNOR or NRI

1. Having Income above Rs 50 lakhs
2. Having Multiple Properties including the properties outside India
3. Agriculture Income of more than Rs 5000
4. Being a Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head "Income from House Property", "Income from Capital Gains".
5. Have sold a property or shares or mutual funds.
6. Having foreign assets
7. Profit or loss derived from the sale of Cryptos / VDAs, excluding crypto derivatives (F&Os)
8. Gifts received in the form of VDAs / Cryptos needs to be reported under ITR2/3 (based on applicability)

4. When to choose ITR-3 (Released on 01st May 2025)

1. For Individuals, HUF being a resident, RNOR or NRI having Salary, House property, other sources, foreign income, Capital Gain and Business or Professional Income
2. Having Income above Rs 50 lakhs
3. Having Multiple Properties including the properties outside India
4. Agriculture Income of more than Rs 5000
5. Being a Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head "Income from House Property", "Income from Capital Gains".
6. Have sold a property or shares or mutual funds
7. Having foreign Assets
8. Being a Partner in a Firm/LLP
9. Profit or loss derived from the sale of Cryptos / VDAs, including crypto derivatives (F&Os)
10. Gifts received in the form of VDAs / Cryptos needs to be reported under ITR2/3 (based on applicability)

5. When to choose ITR-4 (Released on 29th April 2025)

1. For Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 Lakh
2. having one house property (single ownership)
3. having income from business and profession which is computed under sections 44AD, 44ADA or 44AE or Interest Income, Family pension etc
4. Having long Term Capital Gains upto Rs 1,25,000 on Shares or Mutual Funds on which STT is paid.
5. Agricultural income up to Rs. 5000/-
6. Not a Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head "Income from House Property".
7. Do not use this form if you have a sale of Cryptos / VDAs, Sale of property, debt mutual funds, unlisted shares or any other assets except shares or mutual funds on which STT is paid and long term capital gain is upto Rs 1.25 lakh.
8. Do not use this form even if you want to carry forward long-term capital loss on shares or mutual funds on which STT is paid