Introduction : Filing your Income Tax Return (ITR) has become slightly more detailed for the FY 2024-25. The ITR forms are now more comprehensive and demand greater clarity and precision in disclosures. As such, taxpayers ranging from salaried individuals and professionals to businesses and trusts must take careful note of the updated formats to ensure accurate and compliant return filing.
The modifications encompass eligibility criteria revisions, enhanced capital gains disclosure requirements, detailed deduction reporting, refinements in presumptive taxation rules, and additional reporting obligations in specific scenarios such as foreign assets, virtual digital assets, and income under multiple heads.
Expansion of Eligibility to File ITR-1 And ITR-4 :
From A.Y. 2025-26, taxpayers earning LTCG up to Rs. 1.25 lakh under Section 112A, with no carry forward or brought forward losses, can now file ITR-1 or ITR-4.
Earlier, even small equity gains made taxpayers ineligible for these simpler forms.
This change eases return filing for salaried individuals and small business owners with modest investments.
List of additional disclosures for filing ITR :
1. House rent allowance (HRA) as per Section 10 (13A)
- Place of work
- Actual HRA received
- Actual Rent paid
- Information of landlords
2. Deduction under Section 80C
- Policy Number or document number
- PPF account number
3. Interest on housing loan deduction
- Loan Source
- Name of lender
- Loan Account Number
- Loan sanction date
- Loan amount
- Outstanding loan
4. Health insurance deduction as per Section 80D
- Name of health insurance company
- Policy number
5. Medical treatment as per Section 80DDB
- Name of Disease
Changes in threshold for Reporting Assets and Liabilities :
From A.Y. 2025-26, Schedule AL (reporting of assets and liabilities) is mandatory only if the gross total income exceeds Rs. 1 crore. Previously, the reporting threshold was Rs. 50 lakhs.
Capital Gains Split :
As per Finance Act, 2024, capital gains must now be split into two periods:
- Before July 23, 2024
- On or after July 23, 2024
Compulsorily Disclosure of TDS Sections in ITR Forms :
ITR – 1, 2, 3, and 5 now require taxpayers to mention the exact TDS section (like 194A, 194J, etc.) for non-salary income.
Previously, this was not needed to claim TDS credit.
Further, all taxpayers are now required to report non-dormant bank accounts held in India during the financial year. However, dormant accounts those inactive for over two years are excluded from this requirement, easing compliance for accounts with no recent activity.
Aadhaar Enrollment ID No Longer Valid for Filing ITR :
Budget 2024 has removed the acceptance of the Aadhar Enrollment ID for the PAN application and filing of the ITR. From AY 2025-26, PAN applications and ITRs can no longer be filed using an Aadhaar enrollment ID instead of the actual Aadhaar number. It is to be noted that the ITR Forms for AY 2025-26 (FY 2024-25) do not have the Aadhar Enrollment ID column this year. If taxpayers don’t have an Aadhaar Number, they won’t be able to file the ITR this year.
Conclusion :
The revised ITR-3 form brings greater transparency, better tracking of high-value transactions, and clarity on income heads-especially for professionals, traders, and businessmen.
Ensure you provide accurate information and keep supporting documents handy. Filing your ITR correctly and on time not only avoids penalties but also reflects responsible financial behavior.
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The author can be contacted at calokeshaggarwal52@gmail.com His mobile number is +91-8368353016.
DISCLAIMER : This publication serves as a general guide for informational purposes only. The references and content provided are for educational purposes and should not be considered as legal advice.
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