📢 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:

📋 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)

1. Visit: www.incometax.gov.in
2. Login with PAN & password (or Aadhaar)
3. Go to e-File → Income Tax Return → File New Return
4. Select AY 2025–26 → Correct ITR Form → Choose filing type
5. Fill out all required schedules and deductions carefully
6. Submit verification using Aadhaar OTP or DSC
7. 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.