ITR-1 will continue to be applicable for resident individuals with income up to ₹50 lakh, whose income is from salary, one house and other sources. Under the new system, taxpayers will now be able to report LTCG (under section 112A) up to ₹1.25 lakh in ITR-1.

ITR-2: Detailed reporting of capital gains mandatory

ITR-2 is for individuals who have multiple assets, foreign assets or capital gains. In the updated form:

• LTCG before and after July 23, 2024 will have to be reported separately.
• Unlisted bonds/debentures need to be shown separately as per the holding period.
• The amount received from buyback (after October 1, 2024) should be shown at “zero value” in the “Income from other sources” and capital gains section.
• Now the asset and liability reporting limit has been increased to ₹1 crore (earlier ₹50 lakh).

ITR-3: Monitoring costly transactions

ITR-3 is for individuals and HUFs who earn income from business or profession. It has now been made mandatory to choose the old or new tax regime (Form 10-IE or 10-IEA). Detailed disclosures related to business such as profit, loss and foreign income will have to be given. Also, high value transactions will now have to be reported clearly. Such as:

• Cash deposits above ₹1 crore
• Foreign travel above ₹2 lakh
• Electricity bill exceeds ₹1 lakh
• Credit card bills above ₹10 lakh

ITR-4 (Sugam): Relief in LTCG to presumptive taxpayers

ITR-4 is for those who pay tax on presumptive income. This form now allows taxpayers to report LTCG (Section 112A) up to ₹1.25 lakh. This form is applicable for individuals, HUFs and non-LLP firms.

ITR-5: Verification Process

Taxpayers who have not e-verified their ITR can still print the ITR-V form, sign it and send it to the CPC office in Bengaluru by speed post within 30 days. E-verification can also be done through Aadhaar OTP, net banking or a valid demat/bank account.

ITR-6: New rule on buyback loss

ITR-6, notified on 6 May 2025, is for companies that do not claim exemptions. Some important changes have also been made in it:

• It has been made mandatory to report capital gains before and after July 23, 2024 separately.
• Losses associated with buyback will be recognised only if the related dividend income is declared after October 1, 2024.
• Separate reporting regimes have been added for cruise operators (section 44BBC) and profits from the diamond trade (minimum 4% of gross receipts).
• Detailed information of TDS code and Schedule BP has now been made mandatory.

ITR-7: Stricter disclosures for trusts and entities

ITR-7, notified on May 9, is for entities that file tax returns under sections 139(4A) to 139(4D), such as charitable trusts, political parties and research institutions. Changes in this form include:

• Capital gains need to be reported separately before and after July 23.
• The loss incurred on buyback will have to be explained by combining it with the dividend income.
• Reporting of interest exemption on housing loans (Section 24(b)) will also now be mandatory.
• TDS section code disclosure has been added for better tax audit.