According to an analysis by Taxmann, the revised forms incorporate over 20 changes across ITR-1 to ITR-7, ITR-V, and ITR-U.
Here is a comprehensive breakdown of the key updates:
Business income disclosures widened
The updated forms require more granular reporting of business activity. Taxpayers filing ITR-3, 5 and 6 must now disclose turnover and income from futures and options (F&O) trading separately.
A new field captures interest disallowed on delayed payments to micro and small enterprises under Section 43B(h). Partners are also required to report interest and remuneration received from firms, bringing more clarity to partnership income.
Revised return framework reflected in forms
The extension of the revised return filing window to 12 months has been built into the forms, along with a specific field to report the applicable fee.
In ITR-3, the due date for certain non-audit taxpayers has been updated to August 31, aligning the form with the revised compliance timeline.
More detailed deduction reporting
Disclosure requirements for deductions have been tightened. Claims under Section 80GGC now require the name and PAN of the political party.
For donations under Section 80G, taxpayers must provide transaction reference details and bank IFSC codes, enabling verification of payment trails.
Presumptive taxation sees added disclosures
Taxpayers opting for presumptive taxation under ITR-4 are now required to report investments made during the year.
For non-residents, new reporting fields capture income under presumptive provisions, including Section 44BBD, with separate disclosure of turnover and profits.
Changes in income reporting structure
The forms clarify classification of interest income, requiring disclosures from companies, NBFCs and housing finance companies under specified heads.
A separate field has also been introduced for interest taxable at concessional rates, such as under Section 194LC, to aid TDS matching.
Redundant disclosures removed
Some earlier requirements have been dropped. The need to split capital gains based on the July 2024 rate change has been removed.
Schedule BBS relating to buyback taxation is no longer part of ITR-6 following the shift in tax treatment. Fields for foreign retirement accounts have also been removed from ITR-1 and ITR-4.
Audit and compliance details streamlined
Auditor-related disclosures have been reduced to key identifiers, while details for representative assessees have been limited to basic contact information.
Additional disclosures for trusts and institutions
In ITR-7, trusts must now report the total value of investments instead of nominal value. The forms also require disclosure of the validity period of registrations under other laws.
Thresholds for identifying substantial contributors have been revised, and political parties must now specify the authority to which statutory reports are submitted.
Expanded contact information
A structural change requires taxpayers to provide both primary and secondary contact details, including address, mobile number and email ID.
Direction of changes
The revisions point to a shift toward tighter data capture and verification, particularly for business income and deductions, while removing transitional or duplicative fields.
