Are you filing your ITR for AY 2025–26? The Income Tax Department has introduced several new disclosure requirements and form changes this year to increase compliance and transparency. Here’s a simplified guide to help you understand what’s new and what to report.
🔍 1. New Eligibility for ITR-1 and ITR-4
✔️ ITR-1 (Sahaj) and ITR-4 (Sugam) now allow reporting of capital gains up to ₹1.25 lakh under Section 112A.
✔️ These forms can still be used only if there is no capital loss and the gain arises from equity shares or units of mutual funds.
✅ Benefit: More taxpayers can now file using simplified forms.
💼 2. Higher Limits for Presumptive Taxation
✔️ Under Section 44AD (Business): Turnover limit increased to ₹3 crore.
✔️ Under Section 44ADA (Professionals): Limit raised to ₹75 lakh.
📝 Condition: Cash receipts should not exceed 5% of total turnover.
🔁 3. Opt-Out from New Tax Regime (Section 115BAC)
Taxpayers opting out of the new regime must:
✔️ Mention whether they’ve filed Form 10-IEA in the past.
✔️ Provide the acknowledgment number and date of filing of the opt-out form.
📢 Tip: Mandatory for those switching to the old regime and claiming deductions.
🧾 4. TDS Section Disclosure Made Mandatory
✔️ When claiming TDS credit, you must now mention:
✔️ The specific section under which TDS was deducted (e.g., 194A, 194J).
📄 Why?: Helps match TDS claims with Form 26AS and AIS data.
💸 5. Capital Gains – Transfer Date Disclosure
For assets transferred on or after 23rd July 2024, taxpayers must now:
✔️ Disclose the date of transfer clearly.
✔️ This is to apply the correct tax rate as per amended capital gains rules.
🏠 6. HRA Claim – More Details Required
To claim House Rent Allowance (HRA) exemption under Section 10(13A), you now need:
✔️ City type (metro or non-metro)
✔️ HRA received
✔️ Rent paid
✔️ Basic salary + DA
✔️ PAN and name of landlord (if rent > ₹1 lakh)
🏦 7. All Active Bank Accounts Must Be Disclosed
✔️Taxpayers must now report all active bank accounts held during the year.
✔️Dormant accounts (no transactions for over 2 years) are excluded.
💡 Purpose: To ensure accurate reporting of refund credits and interest income.
📊 8. Net Worth Disclosure (Schedule AL) Threshold Raised
✔️Earlier, individuals with income above ₹50 lakh had to file Asset & Liability Schedule.
✔️Now, this limit is increased to ₹1 crore.
✅ Relief: Fewer middle-income taxpayers need to report assets.
🌍 9. Foreign Retirement Account Reporting Simplified
For taxpayers with retirement accounts outside India (covered under Section 89A):
✔️The reporting format is now simplified and aligned with treaty benefits.
📃 10. Section 80 Deductions – Detailed Reporting
You must now provide additional information while claiming deductions under:
Are you filing your ITR for AY 2025–26? The Income Tax Department has introduced several new disclosure requirements and form changes this year to increase compliance and transparency. Here’s a simplified guide to help you understand what’s new and what to report.
🔍 1. New Eligibility for ITR-1 and ITR-4
✔️ ITR-1 (Sahaj) and ITR-4 (Sugam) now allow reporting of capital gains up to ₹1.25 lakh under Section 112A.
✔️ These forms can still be used only if there is no capital loss and the gain arises from equity shares or units of mutual funds.
✅ Benefit: More taxpayers can now file using simplified forms.
💼 2. Higher Limits for Presumptive Taxation
✔️ Under Section 44AD (Business): Turnover limit increased to ₹3 crore.
✔️ Under Section 44ADA (Professionals): Limit raised to ₹75 lakh.
📝 Condition: Cash receipts should not exceed 5% of total turnover.
🔁 3. Opt-Out from New Tax Regime (Section 115BAC)
Taxpayers opting out of the new regime must:
✔️ Mention whether they’ve filed Form 10-IEA in the past.
✔️ Provide the acknowledgment number and date of filing of the opt-out form.
📢 Tip: Mandatory for those switching to the old regime and claiming deductions.
🧾 4. TDS Section Disclosure Made Mandatory
✔️ When claiming TDS credit, you must now mention:
✔️ The specific section under which TDS was deducted (e.g., 194A, 194J).
📄 Why?: Helps match TDS claims with Form 26AS and AIS data.
💸 5. Capital Gains – Transfer Date Disclosure
For assets transferred on or after 23rd July 2024, taxpayers must now:
✔️ Disclose the date of transfer clearly.
✔️ This is to apply the correct tax rate as per amended capital gains rules.
🏠 6. HRA Claim – More Details Required
To claim House Rent Allowance (HRA) exemption under Section 10(13A), you now need:
✔️ City type (metro or non-metro)
✔️ HRA received
✔️ Rent paid
✔️ Basic salary + DA
✔️ PAN and name of landlord (if rent > ₹1 lakh)
🏦 7. All Active Bank Accounts Must Be Disclosed
✔️Taxpayers must now report all active bank accounts held during the year.
✔️Dormant accounts (no transactions for over 2 years) are excluded.
💡 Purpose: To ensure accurate reporting of refund credits and interest income.
📊 8. Net Worth Disclosure (Schedule AL) Threshold Raised
✔️Earlier, individuals with income above ₹50 lakh had to file Asset & Liability Schedule.
✔️Now, this limit is increased to ₹1 crore.
✅ Relief: Fewer middle-income taxpayers need to report assets.
🌍 9. Foreign Retirement Account Reporting Simplified
For taxpayers with retirement accounts outside India (covered under Section 89A):
✔️The reporting format is now simplified and aligned with treaty benefits.
📃 10. Section 80 Deductions – Detailed Reporting
You must now provide additional information while claiming deductions under: