ITR filing for AY 2025-26 set to begin: Here are the key changes taxpayers should watch out for

As the new financial year 2025–26 begins, taxpayers across India are turning their focus on filing their income tax returns (ITR) for the previous year—Financial Year 2024–25 (Assessment Year 2025–26).

The Income Tax Department is expected to soon release the online ITR forms, which will officially open the e-filing process. Usually, the Central Board of Direct Taxes (CBDT) announces these forms in the early months of the financial year, and this year they are likely to be available by April.

However, for most salaried individuals, the actual process of filing usually starts a little later. That’s because they need to receive Form 16 from their employers—a key document that shows salary details and the tax already deducted. Employers must issue this form by 15 June, as per the rules.

So even though the online portal might open in April, most salaried taxpayers are expected to begin filing their ITRs from mid-June, after they get all the required documents.

Changes expected in the return of income AY 2025-26

Kinjal Bhuta, Secretary, Bombay Chartered Accountants' Society (BCAS) says, "For all assessees, the buy-back of shares will now be reflected under the head “Income from Other Sources” (Schedule OS) as per the taxation of dividends under Section 22(2)(f). In the case of capital gains, the short-term capital gains tax rate for listed shares and securities has been revised from 15% to 20%, while the long-term capital gains tax rate has increased from 10% to 12.5%. These changes will apply to transactions made after 23rd July 2024 and will be reflected in Schedule CG of the Income Tax Return (ITR)."

"Additionally, indexation benefits will only be allowed in the computation of capital gains on the sale of immovable properties that have been held for more than 24 months from the date of acquisition, applicable after 23rd July 2024. Furthermore, any disallowance under Section 37, particularly amounts paid outside India for the settlement of contraventions occurring outside India, will now need to be disclosed separately," said Bhuta.

For individuals filing under the new tax regime, several changes have been introduced. The standard deduction for salary income has been increased from the earlier ₹50,000 to ₹75,000, offering greater relief to salaried taxpayers. Additionally, the slab rates applicable to individuals, Hindu Undivided Families (HUFs), Associations of Persons (AOPs), and Bodies of Individuals (BOIs) have been revised, which will result in changes to tax computation in the Income Tax Return (ITR). "Exemptions related to withdrawals, including accrued interest, from the National Pension Scheme and National Savings Scheme made after 29 August 2024 will now be reflected under Schedule EI. Moreover, the family pension exemption limit under the new regime has been raised from ₹15,000 to ₹25,000, providing added relief to pension recipients," said Bhuta.

For corporate, change of the new field for taxation on a presumptive basis for cruise ship operator’s u/s 44BBC will be added in ITR 6 – for Companies (non-residents). Moreover, for partnership Firm/LLP, allowable remuneration will be computed u/s 40(b) differently since the first slab has changed from previous ₹3 lakh to ₹6 lakh.