New ITR-2 kind notified for revenue tax return submitting AY 2025-26: What’s new for taxpayers? Verify high factors

New ITR-2 kind notified: The Central Board of Direct Taxes (CBDT) has notified the ITR-2 Type for AY 2025-26, which incorporates key modifications akin to separate reporting of capital positive aspects, allowance of capital loss on share buybacks from October 1, 2024, and a raised threshold for reporting belongings and liabilities to Rs 1 crore.
The shape additionally mandates reporting of TDS part codes and enhanced disclosures for deductions like 80C and 10(13A).
ITR-2 Type FY 2024-25: Prime factors

What does the brand new ITR-2 imply for taxpayers?
Tax consultants have expressed combined opinions on the brand new ITR-2 kind, noting each the simplifications and the added complexity.
CA Ashish Niraj, Associate at A S N & Firm Chartered Accountants, welcomed the reduction for non-business taxpayers from burdensome disclosure necessities:
“If we see until final 12 months, Schedule AL, which was for belongings and liabilities, was relevant if whole revenue exceeded Rs 50 lakhs. However now, it’s relevant if whole revenue exceeds Rs 1 crore. Getting ready particulars of belongings and liabilities as of March thirty first yearly is a tedious activity for non-business entities for which ITR 2 is relevant. By growing the restrict to Rs 1 crore, taxpayers within the bracket of Rs 50 lakh to Rs 1 crore will get reduction from getting ready the small print,” he instructed TOI.
Niraj added that the brand new TDS reportingrequirement goals to resolve a number of the earlier inefficiencies: “Earlier, whereas coming into TDS particulars in ITR 2, it was not required to say the part below which TDS was deducted, akin to Part 194I, 194J, and so forth. Now, a separate column is offered for the part. Typically, when TDS returns weren’t filed in time by the deductor or had been filed with incorrect particulars, taxpayers used to enter TDS particulars akin to TAN, Title, and quantity manually.As there was no ‘part’ column, the tax division confronted points in processing and cross-verifying. Now, this new column will convey readability in reporting.”
The modifications to capital positive aspects reporting additionally mirror current shifts in tax coverage: “Earlier than July 23, 2024, the Lengthy-Time period Capital Acquire fee was 20% with indexation. After July 23, 2024, a brand new fee of 12.5% with out indexation was launched. Within the newly notified ITR 2, separate columns are added to report transactions earlier than and after July 23, 2024, individually.”
Niraj additionally identified the federal government’s tightening of compliance round disability-related deductions:
“Lately, the division has caught many faux claims for claiming refund or decreasing tax legal responsibility below Part 80U, 80DD and so forth for incapacity. Now, incapacity certificates particulars and so forth. are required.”
CA Gopal Bohra, Associate – Direct Tax at N. A. Shah Associates LLP, defined the updates relating to capital positive aspects taxation: “Contemplating the 2 tax charges relevant on capital positive aspects for the FY 2024-25 (i.e. positive aspects accrued as much as July 22, 2024, and positive aspects accrued on or after July 23, 2024), CBDT has launched a cut up in Schedule Capital Good points to report individually the capital positive aspects the place switch was earlier than July 23, 2024, and the place switch was on or after July 23, 2024.Equally, separate computation mechanisms are offered in ITR in relation to capital positive aspects from switch of land or constructing by resident people the place such land or constructing was acquired previous to July 23, 2024. These modifications in ITR will assist the person taxpayer to compute the right tax legal responsibility on capital positive aspects whereas submitting the ITR.”
Bohra additionally defined the impression of the Finance Act (No. 2) of 2024, which can have an effect on share buybacks: “As amended by Finance Act (No. 2) 2024 with impact from October 1, 2024, the buyback receipt will probably be taxed within the fingers of the recipient as dividend below the top ‘Revenue from Different Sources,’ and the price of such shares will probably be allowed as capital loss below the top ‘Capital Good points.’ Accordingly, in ITR-2, separate line objects are added below Schedule ‘Capital Good points’ and Schedule ‘OS’ to reveal capital loss on buyback of shares on or after October 1, 2024, and receipt from such buyback taxable as dividend below part 2(22)(f) of the Act,” he instructed TOI.
Sonam Chandwani, Managing Associate at S Authorized & Associates, termed the brand new kind a combined expertise for taxpayers.
“The ITR-2 kind for AY 2025-26, looks like a combined bag in comparison with final 12 months’s model. The brand new cut up in Schedule Capital Good points for pre- and post-July 23, 2024, positive aspects is a great transfer to align with the Finance Act’s tax tweaks, but it surely’s a headache for taxpayers juggling a number of transactions. Permitting capital losses from share buybacks after October 1, 2024, is a win for buyers, although tying it to dividend revenue reporting looks like a bureaucratic entice ready to journey individuals up.Bumping the asset and legal responsibility reporting threshold to Rs 1 crore is a reduction for middle-income filers, sparing them tedious paperwork, however the beefed-up deduction reporting for 80C and 10(13A), plus necessary TDS part codes, screams overreach. Actually, whereas the shape tries to steadiness readability and compliance, it’s tilting towards complexity, doubtless forcing salaried of us and HNIs to lean tougher on CAs to keep away from errors.”
Shaily Gupta, Associate at Khaitan & Co, emphasised the shape’s intent to simplify reporting and cut back threat for smaller taxpayers.
“By growing the edge for necessary disclosure of belongings and liabilities below Schedule AL from Rs 50 lakh to Rs 1 crore of whole revenue—providing much-needed reduction to middle-income taxpayers from sustaining detailed information and making disclosures of belongings and liabilities. Any unintentional errors in reporting belongings and liabilities, which beforehand uncovered small taxpayers to the danger of revenue tax penalty, is now mitigated – a welcome change that resonates with FM’s belief imposed on taxpayers.” Shaily Gupta famous.