CBDT notifies ITR-Form 2 for AY 2025-26 vide Notification No. 43/2025 dated 03.05.2025. Notification amends Income-tax Rules, 1962. The amendment, titled the Income-tax (Fifteenth Amendment) Rules, 2025, is made in exercise of powers granted under Section 139 read with Section 295 of the Income-tax Act, 1961. The notification states that the revised rules will come into effect from 1st April 2025. As part of this amendment, a new format for FORM ITR-2 has been introduced, replacing the existing one in Appendix-II of the Income-tax Rules, 1962. This revised ITR-2 form is intended for use by individual taxpayers and Hindu Undivided Families (HUFs) who do not have income from business or profession. The updated form will apply to income tax returns filed for the assessment year 2025–26 and onwards.
This updated form includes several key provisions: Schedule-Capital Gain now distinguishes gains before and after 23.07.2024, aligning with recent Finance Act changes. It permits claiming capital loss on share buyback if corresponding dividend income is declared under other sources post 01.10.2024. The reporting threshold for assets and liabilities has been raised to ₹1 crore of total income, with enhanced reporting requirements for deductions such as 80C and 10(13A). Additionally, the form mandates reporting of TDS section codes in Schedule-TDS.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 43/2025-Income Tax | Dated: 3rd May, 2025
G.S.R 287(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 (Fifteenth 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-2, the following FORM shall be substituted, namely:—
ITR-2
INDIAN INCOME TAX RETURN
[For Individuals and HUFs not having income from profits and gains of business or profession]
(Please see Rule 12 of the Income-tax Rules, 1962)
[F. No. 370142/15/2025-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, subsection(ii) vide number S.O. 969 (E), dated the 26th March, 1962 and was last amended vide notification GSR 286(E), dated the 01 May, 2025.
Explanatory Memorandum– It is hereby certified that no person shall be adversely affected by giving retrospective effect to these rules.
