Tax Alert! CBDT Releases Updated ITR Form 5, Check All The Changes HERE

One of the revisions is a detailed reporting requirement in Schedule-Capital Gain. Taxpayers will now need to disclose capital gains separately for transactions made before and after July 23, 2024.

The revised ITR Form 5 now explicitly includes Section 44BBC, which pertains to presumptive taxation rules for specific businesses, such as those operating in the cruise industry.

Source : ABPLIVE AI

The Central Board of Direct Taxes (CBDT) has officially notified the updated Income Tax Return (ITR) Form 5 for the assessment year 2025–26, introducing several important modifications.

Sharing the update via an X post on Saturday, the Income Tax Department highlighted changes that are aimed at enhancing the accuracy and detail of tax filings.

Among the most notable revisions is a detailed reporting requirement in Schedule-Capital Gain. Taxpayers will now need to disclose capital gains separately for transactions made before and after July 23, 2024.

Additionally, the updated form permits the reporting of capital loss on share buybacks under certain conditions.

According to the Income Tax Department, “Capital loss on share buyback is allowed if corresponding dividend income is shown as income from other sources (post 01.10.2024); reference of sec 44BBC (cruise biz) added; and TDS section code to be reported in Schedule-TDS”.

Kind attention Taxpayers!

CBDT notifies ITR-Form 5 for AY 2025-26 vide Notification No. 42/2025 dated 01.05.2025.

Key updates:
🖋️ Schedule-Capital Gain split for gains before/ after 23.07.2024 (post changes in Finance Act, 2024)
🖋️Capital loss on share buyback allowed if… pic.twitter.com/fDhRKHKPO9

— Income Tax India (@IncomeTaxIndia) May 3, 2025

Inclusion of Section 44BBC and TDS Code Requirement

The revised ITR Form 5 now explicitly includes Section 44BBC, which pertains to presumptive taxation rules for specific businesses, such as those operating in the cruise industry. This addition is aimed at clarifying tax obligations for entities governed by this provision, reported IANS.

Another change introduced is the mandatory specification of the Tax Deducted at Source (TDS) section code within Schedule-TDS. This move is expected to bring more clarity to the categorisation of TDS deductions.

Other ITR Updates Across Forms

Earlier, the CBDT  notified revised versions of ITR-1 and ITR-4 for the financial year 2024–25, applicable to income earned between April 1, 2024, and March 31, 2025. One significant update allows taxpayers to use ITR-1 (SAHAJ) to report long-term capital gains (LTCG) under Section 112A. However, this is permissible only if the LTCG amount does not exceed Rs 1.25 lakh and there are no losses to be carried forward or set off under the capital gains category.

The notification further requires taxpayers who opted out of the new tax regime in AY 2024–25 to explicitly declare whether they intend to continue with or reverse their previous decision. Those making their first opt-out choice in AY 2025–26 are also required to furnish Form 10-IEA acknowledgement details. The notification calls for clarity in cases of late filing of Form 10-IEA as well.