Monday, May 12, 2025

CBDT Notifies New ITR-6 Form for AY 2025-26

 In a significant move aimed at streamlining corporate tax filings, the Central Board of Direct Taxes (CBDT) has notified the amended ITR-6 form applicable for companies for the Assessment Year (AY) 2025-26. The notification was published in the Gazette of India as Notification No. 44/2025 dated May 6, 2025, under GSR No. 290(E).

The revised ITR-6 form comes into effect from April 1, 2025, and is applicable for companies other than those claiming exemption under section 11 of the Income-tax Act, 1961. These amendments have been introduced through the Income-tax (16th Amendment) Rules, 2025, exercising powers under section 295 read with section 139 of the Income-tax Act.

Key Highlights of the Amended ITR-6 Form

  1. The new ITR-6 form, detailed in Schedule-II of the Income-tax Rules, 1962, replaces the earlier format entirely.
  2. It requires comprehensive disclosures from companies including:
  • Permanent Account Number (PAN), Corporate Identification Number (CIN), and the date of incorporation.
  • Details about the type of company (domestic or foreign) and changes in the company name, if any.
  • Precise business commencement date, registered office address, contact details, and email IDs.
  • Filing status under relevant sections such as 139(1), 139(4), 139(5), 92CD, 119(2)(b), and 170A.
  • In case of revised, defective, or updated returns, acknowledgment number and date of the original filing must be specified.
  • Details regarding notices issued under sections 139(9), 142(1), 148, 153A, or 119(2)(b).

Importance for Companies

The revised ITR-6 form aims to enhance transparency and facilitate better compliance monitoring by incorporating more granular details in line with current regulatory and reporting standards. Tax professionals and corporate entities are advised to familiarize themselves with the new structure to avoid last-minute hassles during filing.

The notification is part of the government's broader efforts to simplify and modernize tax administration, ensuring timely and accurate reporting of income and tax liability by corporate taxpayers.

Official copy of the notification link has been given - Click Here


CBDT Notifies New ITR-5 Form for AY 2025-26

 The Central Board of Direct Taxes (CBDT) has officially notified a revised Income Tax Return (ITR) Form 5 applicable for Assessment Year 2025-26.

The revised form was published in the Gazette of India via Notification No. 42/2025 dated May 1, 2025, and is effective from April 1, 2025.

ITR Form 5 is primarily used by:

  • Firms,
  • Limited Liability Partnerships (LLPs),
  • Association of Persons (AOPs),
  • Body of Individuals (BOIs), and
  • Certain cooperative societies and trusts not eligible to file ITR-7.

What's New in ITR Form 5?

The newly revised ITR Form 5 brings several changes aimed at improving compliance accuracy and data capture. Here are the notable updates:

1. Enhanced Entity Identification

Taxpayers must now provide updated details such as:

  • Name (including any recent changes),
  • PAN (Permanent Account Number),
  • Date of formation and commencement of business,
  • LLP Identification Number (if applicable).

2. Expanded Address Details

Detailed residential or office address is now mandatory, including:

  • Flat/Door Number,
  • Premises/Building Name,
  • Locality, District, State, and Pincode,
  • Country,
  • Contact details (landline and two mobile numbers),
  • Two email addresses.

3. Clear Filing Status and Deadlines

A new dropdown-style selection has been introduced to specify the due date of return filing:

  • July 31,
  • October 31,
  • November 30.

The form also mandates taxpayers to indicate the section under which the return is being filed, such as:

  • Section 139(1) - within due date,
  • Section 139(4) - belated return,
  • Section 139(5) - revised return,
  • Section 92CD - modified return under APA,
  • Section 119(2)(b) - under CBDT condonation.

4. Disclosure for Business Trusts

  • A new checkbox seeks declaration on whether the entity is a business trust, thereby ensuring proper categorization and applicability of tax provisions.

Why the Revision Matters

This overhaul aligns with the government's continuing efforts to digitize tax administration, reduce ambiguity in tax filings, and widen the compliance net. The revised form is structured to capture granular information, which is likely to aid in risk-based assessments, faster processing, and improved analytics.

Taxpayers falling under the scope of ITR-5 are advised to carefully review the new format and ensure accurate reporting to avoid penalties or delays.

Official copy of the notification link has been given - Click Here


CBDT Notifies New ITR Form ITR-2 for AY 2025-26

 The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has officially notified a revised Income Tax Return (ITR) Form ITR-2 applicable for the Assessment Year (AY) 2025-26. The changes, published via Notification No. 43/2025 dated May 3, 2025, in the Gazette of India, are brought into effect under the powers conferred by Section 295 read with Section 139 of the Income-tax Act, 1961.

The updated ITR-2 form, part of the Income-tax Rules, 1962, replaces the earlier format under Appendix-II and introduces new fields and declarations aimed at aligning with current financial reporting standards and the new tax regime.

Key Highlights of the New ITR-2 Form

  • Applicable for Individuals and HUFs: The form is meant for individuals and Hindu Undivided Families (HUFs) not having income from business or profession but earning income through salary, house property, capital gains, or other sources.
  • Detailed Personal Information Section: The form now captures enhanced details such as Aadhaar number, multiple mobile numbers, alternate email addresses, and residency information for better taxpayer identification.
  • Disclosure Under New Tax Regime: Taxpayers opting for the new regime under Section 115BAC(6) must now explicitly indicate their choice along with filing under Section 139(1).
  • Mandatory Reporting Under Section 139(1) Seventh Proviso: Individuals not otherwise required to file returns must disclose high-value transactions such as deposits exceeding ₹1 crore or foreign travel expenses above ₹2 lakh, if applicable.
  • Revised Filing Categories: The form now allows classification of returns under different subsections such as 139(4), 139(5), 92CD, or even in response to notices under Sections 139(9), 142(1), 148, or 153A.

Effective Date

The amended ITR-2 form is applicable from April 1, 2025, and will be used for filing income tax returns for the financial year 2024-25 (AY 2025-26).

What Taxpayers Should Do

Taxpayers falling within the scope of ITR-2 are advised to review the changes carefully and ensure accurate compliance while filing their returns. Use of updated utility tools on the income tax portal and consultation with tax professionals is recommended for a smooth filing experience.

Official copy of the notification link has been given - Click Here


CBDT Notifies ITR Forms 1 and 4 for AY 2025-26

The Central Board of Direct Taxes (CBDT) has notified the Income-tax (Twelfth Amendment) Rules, 2025 through Notification No. 40/2025, dated April 29, 2025, amending the Income-tax Rules, 1962. These amendments, effective from April 1, 2025, primarily pertain to the filing of income tax returns for Assessment Year (AY) 2025-26.

IMPORTANT POINTERS

  1. ITR-1 and ITR-4 Updated for AY 2025-26 with revised formats and eligibility.
  2. New ITR Rules Effective from 1st April 2025 under Twelfth Amendment Rules, 2025.
  3. Year References Revised from 2023/2024 to 2024/2025 across rules for consistency.
  4. New Clause Exempts LTCG up to ₹1.25 lakh under section 112A from carry-forward loss.
  5. ITR-1 Eligibility Expanded to include individuals with LTCG up to ₹1.25 lakh and ₹5,000 agri income.
  6. ITR-4 Clarified for resident individuals, HUFs, and firms earning under presumptive taxation with LTCG up to ₹1.25 lakh.
  7. Form 10-IEA Mandatory for opting out of the new tax regime under section 115BAC(6).
  8. High-Value Transactions Disclosure required for deposits, foreign travel, and electricity expenses.
  9. Bank Accounts Reporting made mandatory for non-dormant accounts for refunds and verification.
  10. Revised Declaration Section includes structured dropdowns and enhanced filing confirmations.

Key Highlights

1. Updated ITR-1 (Sahaj) and ITR-4 (Sugam) Forms Released

The revised ITR-1 and ITR-4 forms are now applicable for AY 2025-26.

ITR-1 is meant for resident individuals (excluding ordinarily resident) having total income up to Rs 50 lakh from salary, one house property, other sources (like interest) and long-term capital gains up to Rs 1.25 lakh under section 112A.

CBDT Notifies ITR Form 1 for AY 2025-26

Similarly, ITR-4 is for resident individuals, HUFs, and firms (other than LLPs) with total income up to Rs 50 lakh from presumptive business or profession under sections 44ADA, 44AD or 44AE.

CBDT Notifies ITR Form 4 for AY 2025-26

2. Clarity on Capital Gains Reporting

The new forms now include a specific provision for reporting long-term capital gains up to Rs 1.25 lakh under Section 112A, clarifying eligibility for simplified return filing even when such gains are present.

3. Changes in Rule 12 and Reporting Formats

Amendments in Rule 12 update the tax filing conditions for non-residents and clarify return forms applicable in case of business income, capital gains, and other specific situations. References to outdated years have been updated to reflect the current assessment year.

4. Enhanced Disclosure Requirements

Taxpayers opting for the old regime under Section 115BAC(6) are now required to submit Form 10-IEA by the due date under Section 139(1). Additionally, Schedule details for advance tax, TDS, TCS, and specified financial transactions have been standardized for accuracy.

5. Reporting Under Clause 139(1)(7)

Individuals not otherwise liable to file returns but meeting specific criteria (e.g., high-value transactions like foreign travel expenses exceeding Rs 2 lakh or electricity consumption over Rs 1 lakh) must furnish the return and disclose the transaction details.

6. Facilitating E-filing and Pre-validation

The forms include improved sections for e-verification and bank account details to ensure seamless refund processing. Emphasis has been placed on accurate IFSC code, account number, and bank selection for refund credit.

Implications for Taxpayers

The notification ensures alignment with current fiscal provisions and enhances compliance transparency. Taxpayers must ensure accurate classification of income and deductions while selecting the appropriate ITR form. The CBDT's move is also aimed at simplifying e-filing and reducing errors in refund claims.

Where to File

The updated ITR forms can be accessed on the Income Tax e-Filing portal. Taxpayers are advised to review instructions carefully and consult with a professional for complex incomes or if switching between old and new tax regimes.

Official copy of the notification link has been given - Click Here


CBDT Notifies New ITR-7 Form for AY 2025-26

 The Central Board of Direct Taxes (CBDT) has notified the amended Income-tax Return Form ITR-7 through Notification No. 46/2025, published in the Gazette of India on May 9, 2025. The changes will come into effect from April 1, 2025, and are applicable for the Assessment Year 2025-26.

Issued under the powers conferred by section 295 read with section 139 of the Income-tax Act, 1961, the revised form replaces the existing version of ITR-7 in Appendix II of the Income-tax Rules, 1962. This form is meant for entities such as charitable trusts, religious institutions, political parties, research associations, and other institutions that claim exemption under various sections of the Income-tax Act including section 11, 12, 10(23C), and 13A.

Key Highlights of the New ITR-7

  1. The new format aligns with amendments introduced in the Finance Act, 2024.
  2. It includes enhanced disclosure requirements related to:
  • Foreign contributions
  • Registration under different laws (like FCRA, SEBI)
  • Compliance with conditions of tax exemptions
  1. Fields have been expanded for reporting voluntary contributionsaccumulated income, and application of funds under various clauses of Section 11 and 12.
  2. Additional compliance checks have been introduced for specified violations under Section 13, which could lead to denial of exemption.

This move is aimed at improving transparency and ensuring that the tax-exempt entities maintain strict adherence to the conditions under the Act. Entities required to file ITR-7 must now align their accounting and reporting systems with the newly notified form.

Who Needs to File ITR-7?

The ITR-7 form is applicable for:

  • Trusts and institutions claiming exemption under Section 11 or 12
  • Political parties under Section 13A
  • Research associations and universities under Section 10(21) and 10(23C)
  • Other institutions specified under clauses of Section 10

Tax professionals and organizations falling under these categories are advised to review the new structure carefully and update their tax filing procedures accordingly.

CBDT Notifies Revised ITR-V and Acknowledgement Forms for AY 2025-26

 

CBDT Notifies Revised ITR-V and Acknowledgement Forms for AY 2025-26


The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has notified the Income-tax (Seventeenth Amendment) Rules, 2025 via Notification No. 45/2025 dated May 7, 2025. The amendment revises the formats of ITR-V (Verification Form) and ITR-Acknowledgement under Rule 12 of the Income-tax Rules, 1962. These changes are deemed effective from April 1, 2025, and apply to the Assessment Year (AY) 2025-26.

Key Highlights

Revised ITR-V (Verification Form)

The updated ITR-V is meant for cases where the return of income is filed in ITR-1 (SAHAJ), ITR-2, ITR-3, ITR-4 (SUGAM), ITR-5, or ITR-7 but has not been verified electronically. The revised form includes:

  • PAN, name, and assessment year
  • E-filing acknowledgement number
  • A solemn verification declaration
  • Mandatory digital signature or EVC/OTP-based verification
  • IP address and system-generated barcode/QR code for authentication

Taxpayers are encouraged to complete e-verification using Aadhaar OTP, net banking, pre-validated bank/Demat accounts, or EVC via bank ATM. Alternatively, the signed ITR-V can be sent via Speed Post only to the CPC, Bengaluru.

New Acknowledgement Format

For returns filed and verified electronically, a new Acknowledgement format has been introduced. It includes:

  • Detailed tax computation: total income, MAT/AMT applicability, tax payable/refundable
  • Accreted income and tax details under ections 115TD, 115TE
  • E-verification method used
  • IP address and timestamp of the return filing
  • Explicit instruction not to send this acknowledgement to CPC, Bengaluru

Administrative Notes

  • The revised forms aim to enhance clarity, digital verification, and processing speed.
  • The retrospective application of these rules has been certified to not adversely affect any taxpayer.
  • This move aligns with the government's ongoing efforts to streamline tax compliance and reduce paper-based interactions.

Conclusion

Taxpayers filing returns for AY 2025-26 must ensure they use the newly notified forms and adhere to the revised verification procedures. Non-compliance or delay beyond the 30-day window may result in the return being treated as filed late, attracting penalties under the Income-tax Act.

Official copy of the notification link has been given - Click Here


Saturday, May 3, 2025

ITR-3 Notified for AY 2025-26

🔹 *ITR-3 Notified for AY 2025–26*

CBDT has rolled out the ITR-3 form for income earned in FY 2024–25. Designed for individuals & HUFs with business/profession income. Here are the key details:

👉 *Split Capital Gains Reporting Introduced*
 » New schedule to report gains before/after July 23, 2024
 » Aligns with Finance Act 2024 changes for accurate tax computation

👉 *Share Buyback Losses Now Allowed*
 » Capital loss from share buyback claimable if dividend shown as 'Income from Other Sources'
 » Applies from October 1, 2024

👉 *Asset & Liability Threshold Raised*
 » Disclosure now mandatory only if total income > ₹1 crore

👉 *Other Changes*
 » Sec 44BBC reference for cruise business added
 » Detailed columns for deductions (like 80C, HRA)
 » TDS section code must now be reported in TDS Schedule

👉 *Rebate Under Sec 87A – Rules*
 » Capital gains (Sec 111A/112) excluded from rebate under new regime
 » Rebate applies only on slab-rate income like salary/profession

👉 *Revised 87A Limits for FY 2025–26*
 » Income threshold raised: ₹12 lakh (up from ₹7 lakh)
 » Max rebate hiked to ₹60,000 (from ₹25,000)

👉 *Who should use ITR-3?*
 » Proprietors (audited or not), multiple house property holders
 » Those with capital gains, foreign income, or carry-forward losses

Stay tuned for Tax updates!
🔗 Join our MR Associates channel on WhatsApp:

Handling of Inadvertently Rejected records on IMS

Question 1: How can a recipient avail ITC of wrongly rejected Invoices/ Debit notes/ECO-Documents in IMS as corresponding GSTR-3B of same ta...