Filing your income tax return for the financial year 2024–25? You’ll notice a few changes in the ITR forms this time. The Income Tax Department has updated several rules that could affect how you file, especially if you’ve earned capital gains, had tax deducted at source, or own high-value assets.

These changes are part of the effort to make tax filing more accurate and aligned with recent updates in the law.

More taxpayers can now use ITR-1 and ITR-4

For starters, more people can now use ITR-1 and ITR-4 forms. If you’ve made long-term capital gains (LTCG) from shares or mutual funds, but the total is under Rs 1.25 lakh in the year, you’re still eligible to use these simpler forms. That’s a big help for small investors who previously had to choose more complex forms.

TDS section details now mandatory in ITR forms

Another major update is that you now need to clearly mention the specific TDS section under which tax was deducted from your income.

This change applies to ITR forms 1, 2, 3 and 5. So whether your employer deducted TDS from your salary or you earned interest or rent, you’ll have to ensure the correct section is filled in.

Updated capital gains tax rules take effect from July 2024

This year’s forms also reflect the revised capital gains tax rules announced in Budget 2024. These rules kick in from July 23, 2024.

So, if you’re selling shares, mutual funds, or even property, the date of sale becomes important in figuring out how much tax you owe. The newer rules might change how gains are calculated based on when the asset was sold.

New rules ease asset disclosure information

There’s also a change in who needs to report their assets and liabilities. Until now, anyone with income over Rs 50 lakh had to share these details.

From this year, only those with gross total income above Rs 1 crore need to provide such information. That means fewer people will have to worry about this extra disclosure.

Buy-back proceeds now treated as dividends

Lastly, there’s a fresh rule on share buy-backs. If a listed company buys back your shares on or after October 1, 2024, the amount you get will now be treated as a dividend for tax purposes. This will have to be reported in your ITR-2 or ITR-3, depending on your filing category.

These small changes could make a big difference to how your return is processed. So it’s a good idea to stay updated and check the instructions carefully before you file.