The Income Tax Department has introduced notable changes to the ITR (Income Tax Return) forms for Assessment Year 2025–26, aimed at improving transparency, ease of compliance, and better capturing of taxpayer data. These changes are largely aligned with the government’s broader push towards digitization and automation in tax filings. Key revisions include additional disclosure requirements for foreign income and assets, separate fields for capital gains from digital assets, and more detailed reporting of income from other sources. Salaried individuals will now see pre-filled data from the Annual Information Statement (AIS) and Form 26AS, reducing the chances of mismatch and streamlining the filing process.

Businesses and professionals, particularly those opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE, will need to provide more granular details regarding turnover and expense categorization. There is also a greater emphasis on mandatory PAN-Aadhaar linking, as failure to do so may lead to the return being considered defective. Additionally, the new forms prompt disclosures around virtual digital asset transactions and specified financial transactions, in line with ongoing efforts to monitor high-value digital activities. Taxpayers are advised to review the changes in detail and consult with professionals to ensure accurate and timely filings for AY 2025–26.