Key changes in income tax return forms for FY 2024-25

June 14, 2025 Finance Talk Valli Sarvani

The Income Tax Department has updated the ITR forms for FY 2024-25, reflecting the tax law changes announced in the July 2024 budget.

However, taxpayers must wait for the official release of e-filing utilities on the income tax portal to file their returns.

Here are some important changes that simplify and clarify the ITR filing process this year:

Expanded Eligibility for ITR-1 and ITR-4

Taxpayers with long-term capital gains (LTCG) from equity and equity mutual funds can now use ITR-1 and ITR-4, provided gains don’t exceed ₹1.25 lakh and there are no brought forward losses. This relaxes previous restrictions, easing compliance for small taxpayers.

Aadhaar Enrolment ID No Longer Accepted

The forms have removed the option to enter an Aadhaar enrolment ID. Only the full Aadhaar number is accepted for PAN applications and ITR filing. Taxpayers without Aadhaar will be unable to file ITR this year.

Opting Out of New Tax Regime Requires Detailed Disclosure

Business owners must now confirm past filings of Form 10-IEA and indicate if they want to continue opting out of the new tax regime in the current year when filing ITR-4.

Mandatory Mention of TDS Section

Taxpayers must specify the TDS section under which tax was deducted for income other than salary. This helps correctly claim tax credits.

New Capital Gains Rules Apply from July 23, 2024

The ITR forms require reporting capital gains separately for asset transfers before and after July 23, 2024. Tax calculation depends on the transfer date and updated tax rates.

Separate Reporting for Unlisted Bonds and Debentures

Gains on unlisted bonds redeemed or transferred on or after July 23, 2024, are taxed as short-term capital gains at slab rates, regardless of holding period. Gains before this date follow old rules.

Buy-Back Proceeds Treated as Dividends from October 1, 2024

Share buy-back proceeds must be reported as income from other sources, with capital loss reported on sale proceeds, allowing offsetting of gains in future years.

Disability Certificate Acknowledgement Required for Deductions

Claiming deductions under Sections 80DD or 80U now requires providing the acknowledgement number of the disability certificate along with Form 10-IA.

Asset Reporting Threshold Raised to ₹1 Crore

Taxpayers with a gross total income exceeding ₹1 crore must report assets and liabilities. Previously, the threshold was ₹50 lakh.

These changes aim to simplify filing, improve transparency, and align tax returns with updated laws. Taxpayers should review the new forms carefully and ensure compliance with the revised requirements.

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Image Published on February 11, 2017