Income Tax

For FY 2024-25 (AY 2025-26), the Income Tax Department has released

updated ITR forms with several modifications to enhance compliance and transparency. Here’s a quick overview:

 ITR-1 (Sahaj) – For resident individuals with total income up to ₹50 lakh from salary, one house property, and other sources. Now allows reporting of long- term capital gains up to ₹1.25 lakh.

 ITR-2 – For individuals and HUFs not having business or professional income. Includes enhanced disclosure requirements for capital gains, clubbing of income, and foreign assets.

 ITR-3 – For individuals and HUFs having income from business or profession. Now mandates reporting of cash receipts and income from Virtual Digital Assets (VDA).

 ITR-4 (Sugam) – For resident individuals, HUFs, and firms (excluding LLPs) with presumptive income under Sections 44AD, 44ADA, or 44AE. Now requires reason for opting out of the new regime via Form 10-IEA.

 ITR-5 – For partnership firms, LLPs, AOPs, and BOIs. Includes new sections for tax regimes under Sections 115BAD and 115BAE.

 ITR-6 – For companies (except those claiming exemption under Section 11). Now requires detailed reporting of pass-through income from REITs, InvITs, and AIFs.

 ITR-7 – For trusts, political parties, and charitable institutions. Mandates reporting of FCRA registration details and foreign contributions.

Additionally, ITR-1 and ITR-4 are now enabled for online filing on the Income Tax e-filing portal