ITR Filing for FY25: From LTCG to Buyback Dividend Tax, Your Complete Guide

New thresholds for capital gains, buybacks, new tax rules—all for greater clarity and compliance

- MAYANK MOHANKA

The Central Board of Direct Taxes (CBDT) has released revised ITR forms 1–5 for AY 2025–26 to reflect Budget 2024 changes—raising capital gains thresholds and presumptive tax limits. These updates aim to give taxpayers more clarity but also introduce finer compliance requirements.

ITR 1 (Sahaj) remains for resident individuals and Hindu Undivided Families with annual income up to ₹50 lakh from salary, pension, interest, dividends and single house rent.

LTCG relief: Budget hiked the tax exempt limit for long-term capital gains on securities from ₹1 lakh to ₹1.25 lakh. The updated ITR 1 now lets those gains be reported on Sahaj. Previously, even exempt gains forced filers into the more detailed ITR 2.

ITR 4 (Sugam) covers resident individuals and HUFs under the presumptive scheme. Its business turnover cap rose to ₹3 crore from ₹2 crore and professional receipts cap from ₹50 lakh to ₹75 lakh. Sugam also permits reporting LTCG up to ₹1.25 lakh.

ITR 2 is for individuals and HUFs with income above ₹50 lakh or any capital gain. ITR 3 caters to those with business or professional income. ITR 5 is for limited liability partnerships and business trusts. Forms 2, 3 and 5 include revised LTCG limit, updated turnover and receipts thresholds to align with the new tax rules.