{"id":298163,"date":"2025-05-05T14:48:32","date_gmt":"2025-05-05T14:48:32","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/05\/05\/new-itr-2-form-notified-for-income-tax-return-filing-ay-2025-26-whats-new-for-taxpayers-check-top-points-times-of-india\/"},"modified":"2025-05-05T14:48:32","modified_gmt":"2025-05-05T14:48:32","slug":"new-itr-2-form-notified-for-income-tax-return-filing-ay-2025-26-whats-new-for-taxpayers-check-top-points-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/05\/05\/new-itr-2-form-notified-for-income-tax-return-filing-ay-2025-26-whats-new-for-taxpayers-check-top-points-times-of-india\/","title":{"rendered":"New ITR-2 form notified for income tax return filing AY 2025-26: What\u2019s new for taxpayers? Check top points &#8211; Times of India"},"content":{"rendered":"<div style=\"text-align:center\"><img decoding=\"async\" src=\"https:\/\/i2.wp.com\/static.toiimg.com\/thumb\/msid-120903309,imgsize-821985,width-400,resizemode-4\/120903309.jpg?ssl=1\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"New ITR-2 form notified for income tax return filing AY 2025-26: What\u2019s new for taxpayers? Check top points &#8211; Times of India\" title=\"New ITR-2 form notified for income tax return filing AY 2025-26: What\u2019s new for taxpayers? Check top points &#8211; Times of India\" \/><\/div><p> <br \/>\n<\/p>\n<div>\n<div class=\"MwN2O\">\n<div class=\"vdo_embedd\">\n<div class=\"T22zO\">\n<section class=\"D3Wk1  clearfix id-r-component leadmedia undefined undefined  VtlfQ\" style=\"top:0px\">\n<div class=\"D3Wk1\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"zPaFh\">\n<div class=\"wJnIp\"><\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<p><a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/new-itr-2-form\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\">New ITR-2 form<\/a> notified: The <a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/central-board-of-direct-taxes\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\">Central Board of Direct Taxes<\/a> (CBDT) has notified the ITR-2 Form for AY 2025-26, which includes key changes such as separate reporting of <a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/capital-gains\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\">capital gains<\/a>, allowance of capital loss on share buybacks from October 1, 2024, and a raised threshold for reporting assets and liabilities to Rs 1 crore. <br \/>The form also mandates reporting of <a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/tds\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\">TDS<\/a> section codes and enhanced disclosures for deductions like 80C and 10(13A).<\/p>\n<p><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">ITR-2 Form FY 2024-25: Top points<\/span><\/p>\n<div class=\"cdatainfo modify_cdata_list_style id-r-component \" data-pos=\"16\">\n<ul>\n<li>Capital gains must now be reported separately for transactions before and after July 23, 2024, following changes in the Finance Act, 2024.<\/li>\n<\/ul>\n<\/div>\n<div class=\"cdatainfo modify_cdata_list_style id-r-component \" data-pos=\"17\">\n<ul>\n<li>Capital loss on share buybacks will be allowed if corresponding dividend income is disclosed as \u201cIncome from Other Sources,\u201d effective from October 1, 2024.<\/li>\n<\/ul>\n<\/div>\n<div class=\"cdatainfo modify_cdata_list_style id-r-component \" data-pos=\"18\">\n<ul>\n<li>The threshold for reporting assets and liabilities has been raised from Rs 50 lakh to Rs 1 crore of total income.<\/li>\n<\/ul>\n<\/div>\n<div class=\"cdatainfo modify_cdata_list_style id-r-component \" data-pos=\"19\">\n<ul>\n<li>Reporting requirements for deductions under sections like 80C and 10(13A) have been expanded.<\/li>\n<\/ul>\n<\/div>\n<div class=\"cdatainfo modify_cdata_list_style id-r-component \" data-pos=\"20\">\n<ul>\n<li>A new column has been introduced under Schedule-TDS to specify the section under which TDS was deducted (e.g., 194I, 194J).<\/li>\n<\/ul>\n<\/div>\n<p><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">What does the new ITR-2 mean for taxpayers?<\/span><br \/>Tax experts have expressed mixed opinions on the new ITR-2 form, noting both the simplifications and the added complexity.<br \/>CA Ashish Niraj, Partner at A S N &amp; Company Chartered Accountants, welcomed the relief for non-business taxpayers from burdensome disclosure requirements:<br \/>\u201cIf we see till last year, Schedule AL, which was for assets and liabilities, was applicable if total income exceeded Rs 50 lakhs. But now, it\u2019s applicable if total income exceeds Rs 1 crore. Preparing details of assets and liabilities as of March 31st every year is a tedious task for non-business entities for which <a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/itr\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\">ITR<\/a> 2 is applicable. <!-- -->By increasing the limit to Rs 1 crore, taxpayers in the bracket of Rs 50 lakh to Rs 1 crore will get relief from preparing the details,\u201d he told TOI.<br \/>Niraj added that the <a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/new-tds-reporting\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\">new TDS reporting<\/a>requirement aims to resolve some of the earlier inefficiencies: \u201cEarlier, while entering TDS details in ITR 2, it was not required to mention the section under which TDS was deducted, such as Section 194I, 194J, etc. Now, a separate column is provided for the section. Sometimes, when TDS returns were not filed in time by the deductor or were filed with incorrect particulars, taxpayers used to enter TDS details such as TAN, Name, and amount manually.<!-- -->As there was no &#8216;section&#8217; column, the tax department faced issues in processing and cross-verifying. Now, this new column will bring clarity in reporting.\u201d<br \/>The changes to capital gains reporting also reflect recent shifts in tax policy: \u201cBefore July 23, 2024, the Long-Term Capital Gain rate was 20% with indexation. <!-- -->After July 23, 2024, a new rate of 12.5% without indexation was introduced. In the newly notified ITR 2, separate columns are added to report transactions before and after July 23, 2024, separately.\u201d<br \/> Niraj also pointed out the government\u2019s tightening of compliance around disability-related deductions:<br \/>\u201cIn recent years, the department has caught many fake claims for claiming refund or reducing tax liability under Section 80U, 80DD etc for disability. <!-- -->Now, disability certificate details etc. are required.\u201d<br \/>CA Gopal Bohra, Partner \u2013 Direct Tax at N. A. Shah Associates LLP, explained the updates regarding capital gains taxation: \u201cConsidering the two tax rates applicable on capital gains for the FY 2024-25 (i.e. gains accrued up to July 22, 2024, and gains accrued on or after July 23, 2024), CBDT has introduced a split in Schedule Capital Gains to report separately the capital gains where transfer was before July 23, 2024, and where transfer was on or after July 23, 2024.<!-- -->Similarly, separate computation mechanisms are provided in ITR in relation to capital gains from transfer of land or building by resident individuals where such land or building was acquired prior to July 23, 2024. These changes in ITR will help the individual taxpayer to compute the correct tax liability on capital gains while filing the ITR.\u201d<br \/>Bohra also explained the impact of the Finance Act (No. 2) of 2024, which will affect share buybacks: \u201cAs amended by Finance Act (No. <!-- -->2) 2024 with effect from October 1, 2024, the buyback receipt will be taxed in the hands of the recipient as dividend under the head \u2018Income from Other Sources,\u2019 and the cost of such shares will be allowed as capital loss under the head \u2018Capital Gains.\u2019 Accordingly, in ITR-2, separate line items are added under Schedule \u2018Capital Gains\u2019 and Schedule \u2018OS\u2019 to disclose capital loss on buyback of shares on or after October 1, 2024, and receipt from such buyback taxable as dividend under section 2(22)(f) of the Act,\u201d he told TOI.<br \/>Sonam Chandwani, Managing Partner at S Legal &amp; Associates, termed the new form a mixed experience for taxpayers.<br \/>\u201cThe ITR-2 form for AY 2025-26, feels like a mixed bag compared to last year\u2019s version. The new split in Schedule Capital Gains for pre- and post-July 23, 2024, gains is a smart move to align with the Finance Act\u2019s tax tweaks, but it\u2019s a headache for taxpayers juggling multiple transactions. Allowing capital losses from share buybacks after October 1, 2024, is a win for investors, though tying it to dividend income reporting feels like a bureaucratic trap waiting to trip people up.<!-- -->Bumping the asset and liability reporting threshold to Rs 1 crore is a relief for middle-income filers, sparing them tedious paperwork, but the beefed-up deduction reporting for 80C and 10(13A), plus mandatory TDS section codes, screams overreach. Honestly, while the form tries to balance clarity and compliance, it\u2019s tilting toward complexity, likely forcing salaried folks and HNIs to lean harder on CAs to avoid errors.\u201d<\/div>\n<p><script>\nvar _mfq = window._mfq || [];\n_mfq.push([\"setVariable\", \"toi_titan\", window.location.href]);\n!(function(f, b, e, v, n, t, s) {\n    function loadFBEvents(isFBCampaignActive) {\n      if (!isFBCampaignActive) {\n        return;\n      }\n      (function(f, b, e, v, n, t, s) {\n        if (f.fbq) return;\n        n = f.fbq = function() {\n          n.callMethod ? n.callMethod(...arguments) : n.queue.push(arguments);\n        };\n        if (!f._fbq) f._fbq = n;\n        n.push = n;\n        n.loaded = !0;\n        n.version = '2.0';\n        n.queue = [];\n        t = b.createElement(e);\n        t.async = !0;\n        t.defer = !0;\n        t.src = v;\n        s = b.getElementsByTagName(e)[0];\n        s.parentNode.insertBefore(t, s);\n      })(f, b, e, 'https:\/\/connect.facebook.net\/en_US\/fbevents.js', n, t, s);\n      fbq('init', '593671331875494');\n      fbq('track', 'PageView');\n    };\n    function loadGtagEvents(isGoogleCampaignActive) {\n      if (!isGoogleCampaignActive) {\n        return;\n      }\n      var id = document.getElementById('toi-plus-google-campaign');\n      if (id) {\n        return;\n      }\n      (function(f, b, e, v, n, t, s) {\n        t = b.createElement(e);\n        t.async = !0;\n        t.defer = !0;\n        t.src = v;\n        t.id = 'toi-plus-google-campaign';\n        s = b.getElementsByTagName(e)[0];\n        s.parentNode.insertBefore(t, s);\n      })(f, b, e, 'https:\/\/www.googletagmanager.com\/gtag\/js?id=AW-877820074', n, t, s);\n    };\n    function loadSurvicateJs(allowedSurvicateSections = []){\n      const section =  window.location.pathname.split('\/')[1]\n      const isHomePageAllowed = window.location.pathname === '\/' && allowedSurvicateSections.includes('homepage')\n      if(allowedSurvicateSections.includes(section) || isHomePageAllowed){\n        (function(w) {\n         function setAttributes() {\n                    var prime_user_status = window.isPrime ? 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The [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":298164,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/static.toiimg.com\/thumb\/msid-120903309,imgsize-821985,width-400,resizemode-4\/120903309.jpg","fifu_image_alt":"","footnotes":""},"categories":[604],"tags":[16675,27116,2313,15065,521,7402,20797,273,15064,231786,21758,231784,231785,30265,1607,3950,301,7389,20792,272,1846,300],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/298163"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=298163"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/298163\/revisions"}],"predecessor-version":[{"id":298165,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/298163\/revisions\/298165"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/298164"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=298163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=298163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=298163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}