AY 2025–26 Filing Guide: All You Must Know About ITR-2, ITR-3 & ITR-4 Forms

Updated as per latest CBDT notifications, circulars, and Union Budgets 2024 & 2025

Updated Filing Deadlines

Category	Original Due Date	Extended To
Non-audit Individuals/Firms (ITR-1 to ITR-4)	31st July 2025	15th September 2025 ✅
Audit cases (incl. F&O traders, professionals)	31st October 2025	—
Transfer Pricing/International transactions	30th November 2025	—
Belated or revised returns (ITR-U)	31st December 2025	—

Major Amendments & New Reporting Mandates

1️⃣ Capital Gains Reporting Enhanced

• New Disclosure: Sale date bifurcation – before/after 23 July 2024.

• Applicable to:

  • Listed equity shares, mutual funds, ETFs (under Section 112A)

  • Real estate, unlisted shares, debentures, and bonds

• Tax implications differ based on sale date due to Budget 2024 changes.

• Section 50AA introduced for STCG on certain unlisted bonds/debentures.

Strategic Insight: From AY 2026–27 onwards, the post-23 July 2024 regime will apply exclusively, but for AY 2025–26, both need careful consideration.

2️⃣ ESOPs, Foreign Salary, and FTC (For NRIs and Residents with Global Income)

• Expanded Schedule FA (Foreign Assets), Schedule FSI (Foreign Source Income), and TR (Tax Relief).

• Form 67 to be filed before ITR, for Foreign Tax Credit claim.

• Form 10F/10FCA also mandatory in DTAA cases without TRC.

 ESOPs must be disclosed in both salary and asset sections if from a foreign employer.

3️⃣ LTCG on Real Estate – Choice of Tax Regime

For property sold on/after 23 July 2024, select:

• 20% with indexation, or

• 12.5% without indexation (new concessional flat rate)

Mandatory disclosure of chosen method in Schedule CG.

4️⃣ Buyback Proceeds: New Reporting Fields

• Buyback proceeds post 1st October 2024 are taxable as dividends (under Section 2(22)(d)).

• Report under "Income from Other Sources"

• Declare cost of acquisition as capital loss, allowed to be carried forward for 8 years.

5️⃣ HRA, Rent Paid & Landlord PAN (Section 10(13A), 80GG)

• If claiming HRA exemption:

  • City type, basic salary, actual rent paid, and landlord PAN (if rent > ₹1 lakh/year) are mandatory.

• If no HRA but claiming Section 80GG:

  • File Form 10BA with landlord details and rent declaration.

Planning Tip: Missing landlord PAN or Form 10BA leads to denial of rent deductions.

6️⃣ Interest on Housing Loan – Mandatory Disclosures

For self-occupied or let-out property:

• Lender Name, PAN, Loan Account No.

• Property address

• Pre-construction interest bifurcation (allowed in 5 equal instalments)

• Claim under Section 24(b) and 80EE/80EEA (with sanction date, value, interest limit)

7️⃣ Structured Deductions Under Chapter VI-A

Every deduction now demands granular details:

Section	Additional Disclosure Required
80C	Account No., Institution name (PPF, LIC, NSC etc.)
80D	Insurer name, policy number, premium mode
80CCD(1B)	PRAN & contribution details
80E / 80EE	Loan sanction date, bank/NBFC PAN
80G	Donee PAN, approval code, donation mode
80GG	Landlord PAN + Form 10BA
80TTA/TTB	Bank name and interest bifurcation

8️⃣ F&O Traders – Turnover & Audit Triggers

• Turnover includes:

  • Absolute profit/loss + premium + other charges

• If turnover exceeds ₹10 lakh (profit < 6%), or digital receipts < 95%, tax audit under 44AB is triggered.

• ITR-3 is mandatory (ITR-4 not permitted for F&O).

🔄 Note: Turnover < ₹3 crore? Opt for Section 44AD presumptive scheme only if ≥95% digital receipts.

9️⃣ Professionals – Presumptive or Audit Route?

• Section 44ADA: Available for professionals with gross receipts up to ₹75 lakh (if digital receipts ≥95%).

• If opted:

  • File ITR-4

  • Show 50% deemed income

• If not opted or threshold crossed → ITR-3 + books + audit

Regime Switch Requires: Form 10-IEA filed before ITR to opt-in/out of the new tax regime.

🔟 Form 10-IEA – Regime Selection

• Mandatory to file:

  • If switching between old and new regime

  • Applicable to ITR-1, 2, 3, 4

• Submit before filing ITR; not revisable once submitted.

• If continuing with old regime (default), still report prior selection.

1️⃣1️⃣ Schedule AL (Assets & Liabilities) – Threshold Revised

• Previously: Mandatory if total income > ₹50 lakh

• Now: Required only if income > ₹1 crore

• Declare cost/value of:

  • Immovable property

  • Vehicles, jewellery

  • Unlisted shares, mutual funds

  • Bank balances

1️⃣2️⃣ New Section 44BBC – Cruise Operators

• Cruise ship operators under presumptive scheme must:

  • Report gross receipts, 7.5% deemed income

  • File ITR-3 with new fields in Schedule BP

1️⃣3️⃣ Pass-Through Income Reporting (Section 115U)

• Mandatory for LLP/individuals receiving pass-through income from AIFs, business trusts etc.

• New schedule: Schedule PTI

Special Cases to Plan For

Salaried Person with ESOPs & Rent Claims:

• Use ITR-2

• Report salary split, ESOP taxability, and foreign holdings

• Report HRA/Rent with landlord details

• Use Form 67 for FTC if taxed abroad

Property Seller under New LTCG Regime:

• Report date of sale

• Choose between 20% with indexation or 12.5% flat

• Attach computation sheet

F&O Trader:

• Use ITR-3

• Compute turnover accurately

• Check audit applicability (especially if losses or digital < 95%)

Professional Changing Tax Regime:

• Use Form 10-IEA before filing

• If income < ₹75 lakh & digital >95%, opt for 44ADA (ITR-4)

• Else, maintain books & file ITR-3

Tips for Smooth Filing

• Reconcile Form 26AS, AIS, and TIS with actual income

• Keep documents for all deductions/loans

• File Form 67 and 10BA before ITR if applicable

• Use ITR pre-fill, but verify all data manually

Conclusion

The AY 2025–26 ITR forms are not mere compliance tools—they’re digital declarations demanding precision, clarity, and planning. With new schedules, increased disclosures, and evolving tax laws, even a simple return may now trigger scrutiny if carelessly filed.

👉 Plan smart. File strategically. Review thoroughly.