The Central Board of Direct Taxes (CBDT) has issued Notification No. 44/2025-Income Tax on May 6, 2025, formally notifying Income Tax Return Form ITR-6 for the Assessment Year 2025-26. This form, typically used by companies other than those claiming exemption under Section 11, comes into effect from April 1, 2025, replacing the previous version.
The revised ITR-6 incorporates several key changes reflecting recent amendments to the Income-tax Act, 1961, introduced by the Finance Act, 2024. Notably, the Schedule for Capital Gains has been split to separately report gains earned before and after July 23, 2024. Provisions have also been added to allow capital losses on share buybacks under specific conditions for income arising post-October 1, 2024. A reference to Section 44BBC concerning the cruise business has been included.
Further updates are seen in Schedule BP (Business Profits), aligning with Rule 10TIA, requiring profits from the sale of raw diamonds to be reported as 4% or more of gross receipts. Changes have also been made to accurately capture deductions claimed under Section 24(b) for interest on housing loans. Additionally, the form now mandates reporting the specific TDS section code in the relevant schedule. These revisions aim to streamline reporting in accordance with the updated tax laws for the upcoming assessment year.
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 corresponding dividend income is shown as income from other sources (post 01.10.2024)
- Reference of sec 44BBC (cruise biz) added
- Schedule BP changes (Rule 10TIA): Profits from sale of raw diamonds shall be 4% or more of gross receipts.
- changes made to capture deductions claimed u/s 24(b).
- TDS section code to be reported in Schedule-TDS
MINISTRY OF FINANCE
(Department Of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 44/2025- Income Tax | Dated: 6th May, 2025
G.S.R 290(E).- In exercise of the powers conferred by section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (Sixteenth Amendment) Rules, 2025.
(2) They shall come into force with effect from the 1st day of April, 2025.
2. In the Income-tax Rules, 1962, in Appendix II, for FORM ITR-6, the following FORM shall be substituted, namely: –––
[F.No. 370142/16/2025-TPL]
SURBENDU THAKUR, Under Secy., Tax Policy and Legislation
Note:- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (ii) vide notification number S.O. 969 (E), dated the 26th March, 1962 and was last amended vide notification number G.S.R. 287(E), dated the 03 May, 2025.
Explanatory Memorandum: – It is hereby certified that no person shall be adversely affected by giving retrospective effect to these rules.
