The Central Board of Direct Taxes (CBDT) of the Income Tax Department of India has released an official notification concerning the form of ITR-7 (Income Tax Return) for the Assessment Year (AY) of 2025-26. The authorities have introduced some minor changes in the form following the changes and updates in the Income Tax Act. All the changes have been introduced to make the existing system much more efficient and fair for the country's taxpayers.
Please read the article to learn more about the ITR-7 form, including its meaning and the introduced changes.
Major Changes Introduced In ITR-7 For AY 2025-26
The Central Board of Direct Taxes (CBDT) under the Income Tax Department of India has made some changes in the form of ITR-7 (Income Tax Return) for the Assessment Year (AY) of 2025-26. All those changes are laid down below for one’s reference and better understanding:
1. Capital Gains
Taxpayers will now be required to report Capital Gains separately for transactions that happen before and after July 23rd of 2024.
2. Capital Loss On Share Buyback
A change has been made in the Capital Loss on share buybacks. All those shareholders who have shown dividend income under the category of ‘income from other sources’ rather than as corresponding capital loss on buyback are now allowed to claim it.
3. Section 24(b)
ITR-7 will now include deductions claimed under Section 24(b), which are related to interest paid on borrowed capital for house property. This has been done to increase transparency of interest on housing loans, especially residential properties.
4. TDS Section Codes
All those entities that are required to file the form of ITR-7 (Income Tax Return) are now mandated to report specific Tax Deducted at Source (TDS) section codes in the Schedule-TDS. The authorities have taken this decision to quickly and easily verify the legal alignment of TDS with the related laws.
How To File ITR?
Filing of ITR-7 has not been started yet, but will begin soon. When it’ll start, people can file it through the e-filing portal of the Income Tax Department of India. Please keep in mind that digital signatures are compulsory during the filing of ITR-7 for political parties and entities that need to get their accounts audited.
Conclusion
The form of ITR-7 (Income Tax Return) for the Assessment Year (AY) of 2025-26 has been updated with some minor changes. The changes have been incorporated to transform the system and make it more transparent and accountable. Please follow the legal guidelines and file the ITR-7 accordingly as and when it begins.
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