ITR 2025: New Forms Seek More Disclosures On Rent, Home Loans, TDS

Taxpayers preparing to file their returns for financial year 2024–25 (assessment year 2025-26) will find notable changes in the Income Tax Return forms.

While some aspects of compliance have been simplified, the new forms seek more detailed disclosures across several areas. The Income Tax Department recently notified ITR forms earlier this month for the financial year 2024–25 (AY 2025–26).

From the straightforward ITR-1 to the more intricate ITR-2 and ITR-3, each form has been revised to collect more information while ensuring greater transparency in ITR filing 2025.

The salaried taxpayers reporting long-term capital gains of up to Rs 1.25 lakh from listed equity, including stocks and equity funds under Section 112A, are now eligible to file their returns using the simpler ITR-1 or ITR-4 forms.

This change applies if they do not have any carried-forward losses from previous years. Previously, LTCG under Section 112A had to be reported in the more complex ITR-2 or ITR-3, which required detailed disclosures.

In the new ITR-1 and ITR-4 forms, taxpayers only need to report the total sales consideration, acquisition cost and LTCG amount.

Property sellers should take note of an important change this year. Capital gains from real estate must now be split into two reporting periods — gains accrued before and after July 23, 2024.

This aligns with the Budget 2024 amendment, which introduced a 12.5% tax rate without indexation for sales completed on or after that date. For sales before this cut-off, the traditional 20% rate with indexation remains available.

Those receiving income subject to TDS beyond salary, such as interest, dividends or contractual payments, will now have to report these figures with greater precision. The ITR forms have expanded the TDS section, requiring taxpayers to break down the sources of income against which tax has been deducted.

Another revision is the increase in the threshold for mandatory disclosure of assets and liabilities. Earlier, people with an income exceeding Rs 50 lakh were required to report details of their assets and debts.

This limit has now been raised to Rs 1 crore, relieving many middle-income earners from this reporting obligation.

The revised ITR forms now include additional fields to disclose more information about deductions claimed on various tax-saving investments and expenses, such as those under Sections 80C, 80D, 80CCD and 80E.

These deductions, available under the old tax regime, include claims for contributions to provident funds, life insurance premiums and medical insurance. Taxpayers claiming deductions for interest on housing or education loans will also now be required to provide more detailed information in their filings.

With the deadline to file ITR set as July 31, 2025, for those who don't need their accounts to be audited, taxpayers are advised to gather necessary documents well in advance. Given the new changes, especially around capital gains taxation, consulting a tax professional may be worthwhile to ensure you choose the most beneficial filing route.