Complete Guide to New Annexures in ITR Forms for AY 2025-26

The Indian Income Tax Department has implemented significant updates and introduced new annexures/schedules in the Income Tax Return (ITR) forms for Assessment Year (AY) 2025-26 (Financial Year 2024-25). These modifications are designed to improve transparency, simplify the filing process, and incorporate recent changes in tax regulations.

Key Changes Applicable to All Relevant ITR Forms

Higher Exemption Limit for LTCG Reporting

The revised ITR forms now allow taxpayers to report long-term capital gains (LTCG) from listed equity investments (under Section 112A) up to ₹1,25,000 directly in ITR-1 and ITR-4—provided there are no carried forward or brought forward capital losses. Earlier, such gains often necessitated filing ITR-2, making the process simpler for small investors.

New Tax Regime as Default (Section 115BAC)

The updated ITR forms now treat the new tax regime as the default option. Taxpayers must actively select or confirm their preferred regime (old or new) during filing each year. Those who opted out in AY 2024-25 must reaffirm or change their choice, while first-time opt-outs in AY 2025-26 must submit Form 10-IEA acknowledgement details.

Mandatory Drop-Down Selection for Deductions

Taxpayers must choose applicable deductions (Sections 80C to 80U) from predefined drop-down menus during e-filing. This change enforces accurate taxsaving investments and exemptions reporting by requiring clause/sub-section-level details.

New Section 89A Relief for Foreign Retirement Accounts

The updated ITR forms now include dedicated fields to claim tax relief under Section 89A for foreign retirement accounts, enhancing transparency and compliance for global taxpayers.

Mandatory Aadhaar Number Requirement

The updated ITR forms now require a valid 12-digit Aadhaar number for filing, as the previous option to use a 28-digit Aadhaar Enrolment ID has been removed entirely.

Enhanced TDS Disclosure Requirement

The updated ITR forms now include a mandatory field to declare the applicable section (like 192, 194, etc.) for every TDS entry, enabling precise verification of tax deducted at source claims.

Higher Disclosure Threshold for Assets/Liabilities (ITR-2)

Taxpayers now need to disclose assets and liabilities only if their income exceeds ₹1 crore, doubling the previous ₹50 lakh threshold. This reduces the compliance burden for mid-income filers.

Form-Specific Updates & New Reporting Requirements

ITR-1 (Sahaj)

Simplified LTCG Reporting (Section 112A)

Taxpayers can now directly declare long-term capital gains (LTCG) up to ₹1.25 lakh from listed equities/equity-oriented funds in ITR-1/ITR-4, eliminating the need for ITR-2 filing - provided they have no capital losses to offset.

Enhanced Disclosure Requirements for Deductions (Old Tax Regime)

For salaried taxpayers choosing the old tax regime, the Excel utilities for ITR-1 and ITR-4 now mandate much more detailed reporting of deductions. This key modification aims to prevent incorrect claims and facilitate real-time verification by tax authorities.

• HRA Claim: Requires disclosure of place of work, actual rent paid, actual HRA received, and salary breakup (basic salary and dearness allowance), along with an indication of metro/non-metro city.
• Section 80C Deduction: Requires the policy number or a valid document identification number for investments like PPF, tax-saving FDs, and life insurance.
• Section 80D (Medical/Health Insurance): Requires the name of the insurance company and the policy or document number.
• Section 80E (Education Loan Interest): Requires detailed loan information including lender's name, bank name, account number, date of sanction, total sanctioned amount, outstanding amount as of March 31, and interest paid.
• Section 80EE / 80EEA (Home Loan Interest): Requires lender details, account numbers, sanction dates, loan amount, and outstanding balance.
• Section 80EEB (Electric Vehicle Loan Interest): Requires lender name, bank name, account number, loan sanction date, total loan amount, and remaining balance.
• Section 80DDB (Treatment of Specified Diseases): Requires the name of the specified disease being treated.

ITR-4 (Sugam)

• LTCG Declaration Allowed: Similar to ITR-1, capital gains from listed shares or equity mutual funds (up to ₹1.25 lakh and without losses) can now be reported in ITR-4, avoiding the need to file ITR-2 in such cases.
• New Tax Regime Default (Section 115BAC): As mentioned in general changes, the new regime is now the default, and taxpayers must confirm or change their selection.
• Drop-Down Deductions Menu: Similar to ITR-1, deductions under Sections 80C to 80U must now be selected via drop-down menus with accurate reference to clause/sub-section.
• Relief for Foreign Retirement Accounts (Section 89A): New disclosure fields have been introduced.
• Aadhaar Enrolment ID Discontinued: Only valid 12-digit Aadhaar numbers are accepted.
• TDS Section Field Added: A dedicated field under the TDS schedule to specify the relevant section for each tax deduction entry.
• Detailed Disclosure for Deductions (Old Tax Regime): Similar to ITR-1, detailed disclosure requirements for various deductions apply if opting for the old tax regime.

Key Updates for AY 2025-26 (FY 2024-25)

Extension of ITR Filing Deadline for AY 2025-26

The CBDT has extended the due date for filing Income Tax Returns (ITRs) for Assessment Year 2025-26 (Financial Year 2024-25) from July 31, 2025, to September 15, 2025.

Annexure-free Filing

Typically, ITR forms do not require attachments. There's no need to submit physical copies of documents such as investment proofs or TDS certificates.

However, you must retain all supporting documents for your records, as they may be required for verification if the Income Tax Department conducts a scrutiny assessment in the future.

Available Tools

The Income Tax Department has introduced Excel-based utilities for select ITR forms (including ITR-1 and ITR-4). These utilities feature pre-filled data to make filing easier and more convenient.