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📢 New ITR Forms for AY 2025-26: Detailed Guide on ITR-B, ITR-U & More
The Income Tax Department has released the updated Income Tax Return (ITR) forms for Assessment Year (AY) 2025-26. Several key modifications have been introduced this year, making it essential for taxpayers to be fully informed before filing returns for the Financial Year 2024-25. Among the major highlights are the launch of ITR-B for block assessments and the extension of the ITR-U facility for updating past returns.
In this comprehensive guide, we will cover:
- Overview of all updated ITR Forms (ITR-1 to ITR-7)
- New ITR-B Form and who should file it
- Updated ITR-U and changes for past return correction
- New features and disclosures required in ITRs for AY 2025-26
- Form selection guide with a detailed comparison table
- Step-by-step filing instructions
- Important compliance dates and expert tips
🔍 What’s New in AY 2025-26 ITR Forms?
The Income Tax Department has introduced significant reforms to streamline and digitize the filing process:
- 📌 Inclusion of LTCG up to ₹1.25 lakh in ITR-1 & ITR-4 (previously excluded)
- 📌 Mandatory reporting of all active bank accounts
- 📌 New e-verification and e-pay tax features enabled
- 📌 ITR-B introduced for block assessments under Section 158BC
- 📌 ITR-U extended for updating past returns with minor penalties
- 📌 Removal of Aadhaar enrollment ID — only Aadhaar number accepted
📋 List of Updated ITR Forms
| Form | Who Should File | Key Changes |
|---|---|---|
| ITR-1 (Sahaj) | Salaried individuals (income ≤ ₹50 lakh), 1 house property, other sources, LTCG ≤ ₹1.25L | LTCG inclusion allowed, dropdown-based deduction disclosures |
| ITR-2 | Individuals/HUFs with capital gains, multiple properties, or foreign income/assets | Expanded disclosures for NRIs and multiple house properties |
| ITR-3 | Business owners or professionals | Enhanced sections for presumptive income and partner details |
| ITR-4 (Sugam) | Presumptive income (Section 44AD/44ADA), income ≤ ₹50 lakh | Includes LTCG up to ₹1.25 lakh, Aadhaar mandatory |
| ITR-5 | Firms, LLPs, AOPs, BOIs | Streamlined reporting format and disclosures |
| ITR-6 | Companies (except those exempt u/s 11) | New digital signature authentication mandatory |
| ITR-7 | Trusts, charitable institutions, political parties | New reporting under donations & corpus funds |
| ITR-B | Notified taxpayers served with Section 158BC notice (block assessment) | First time online filing enabled with self-assessment tax |
| ITR-U | Anyone revising past ITRs (up to 4 years back) | Penalty-based corrections with revised tax calculations |
🆕 ITR-B: All You Need to Know
ITR-B is a newly launched form for taxpayers who have received a notice under Section 158BC of the Income Tax Act — usually post a search/seizure by the tax department. This form allows submission of block period returns, covering undisclosed income.
✨ Key Highlights of ITR-B
- Online submission via the Income Tax Portal
- Separate e-payment feature for self-assessment tax under block cases
- Mandatory use of DSC or Aadhaar OTP
- Applicable only after notice is issued — not voluntary
🔄 ITR-U: Update Past Returns
ITR-U offers taxpayers an opportunity to revise their previously filed ITRs for errors, omissions, or missed incomes, up to 4 years from the end of the relevant AY. Introduced under Section 139(8A), this is a huge relief for honest taxpayers seeking correction without prosecution.
✅ When to Use ITR-U?
- If you missed reporting capital gains or business income
- Filed incorrect return (wrong form or deductions)
- Want to declare additional income voluntarily
📌 Time Limits & Penalty Slabs
| Filing Time After Original ITR | Penalty |
|---|---|
| Within 12 months | 25% of additional tax + interest |
| Between 12–24 months | 50% of additional tax + interest |
| Up to 48 months (for FY 2020–21 and onward) | As per latest circular (up to 100%) |
🧾 Form 10-IEA for Tax Regime Selection
Taxpayers switching between old and new tax regimes must file Form 10-IEA before the ITR. The form requires:
- Income slab selection
- Declaration of exempt income (if any)
- Acknowledgment number to be quoted in the ITR
🧭 Step-by-Step Filing Process (Online)
- Visit: www.incometax.gov.in
- Login with PAN & password (or Aadhaar)
- Go to e-File → Income Tax Return → File New Return
- Select AY 2025–26 → Correct ITR Form → Choose filing type
- Fill out all required schedules and deductions carefully
- Submit verification using Aadhaar OTP or DSC
- Pay any tax dues via e-Pay feature
🗓 Important Dates for AY 2025-26
- ITR Filing Start Date: April 1, 2025
- Original Due Date (Non-Audit Cases): July 31, 2025
- Extended Due Date: September 15, 2025
- ITR-U Last Date for FY 2020–21: March 31, 2026
💡 Expert Tips for Taxpayers
- Ensure PAN-Aadhaar linkage is done before filing
- Recheck Form 26AS and AIS for pre-filled data mismatches
- Use the appropriate ITR form based on your income and status
- Don’t miss disclosing foreign income/assets if applicable
- Use a CA for complex filings involving multiple income heads
📌 Final Thoughts
The rollout of new ITR forms for AY 2025-26, including ITR-B and updated ITR-U, signifies the Income Tax Department’s commitment to ease of compliance and transparency. Whether you are salaried, a business owner, or a high-net-worth taxpayer with capital gains, selecting the right form and timely filing are critical to avoiding penalties.
Stay informed, file early, and ensure accuracy — because when it comes to taxes, diligence pays off!
For more updates, visit www.cmaknowledge.in.
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