Major Changes in Capital Gains Taxation

One major change in the Income Tax rules came, was made effective from 23rd July 2024, which launched dual capital gains tax treatment; one of these tax rates is set to be effective from 23rd July and another one after this. This amendment has led to the following:

• Calculating capital gains has become more complicated
• The format for reporting details in Schedule CG of the ITR forms has changed
• These changes have caused delays in finalising the tools on the income tax website

Delay in ITR Form Notifications

Generally, Income Tax Return (ITR) forms are released by the first week of April, and after some days, related utilities are also notified. But this year:

• The forms were announced only in May 2025.
• The Income Tax Department and software companies needed more time to build and test the tools.
• This delay has caused a chain reaction, slowing down the whole return filing process.

Government Might Want to Delay Giving Refunds to Taxpayers

Many people think the government is being careful with money. When taxpayers file early and ask for refunds:

• Under section 244A, the Income Tax Department should pay additional interest on delayed refunds.
• Delaying the tools might help cut down on early refund requests, which can lower the amount of interest the government has to pay.
• This can be a financial strategy of the government to manage its cash flows, especially in a post-election budgetary environment.

Problems Last Year With the 87A Rebate in the New Tax System

On July 05, 2024, the tools required for filing ITR were amended silently. The amendment restricted the Section 87A rebate on income taxed at certain rates (e.g., under Section 111A or 112A) in the new tax regime, which led to the following:

• Many individuals who filed their returns early and claimed this rebate got notices saying their returns had mistakes.
• Led to an increase in careful checking and confusion.
• It is might possible, more precautions will be adopted by the Income Tax Department to prevent these problems and will launch more suitable ulitility for starting.

Delay in TDS/TCS Returns and AIS/26AS Updates

For filing the Income Tax Return (ITR) correctly, Form 26AS and AIS (Annual Information Statement) are essential. Details are as follows:

• Revisions after Form 16, 16A, TDS/TCS returns are filed (Last Date: 31st May)
• To be released officially on June 15, 2025.

Mistakes were noticed in ITRs filed previous year, 2024, with a revised version of AIS/26AS and received defective notices. This year, it is possible that this delay is being made to ensure the following:

• 26AS and AIS are completely updated before ITR filing starts.
• Prevent mistakes and notices

Technical Readiness and Utility Testing

The Income Tax Return (ITR) filing is now stronger and based on JSON, in addition to the following:

• Prefilled data
• Real-time validations
• Multiple data sources (Form 16, Form 26AS, AIS, TIS, etc.)

These facilitate development and testing time, especially because of new tax rules and checks.

Things Taxpayers Should Do

• Wait for stable utilities: Do not file ITR so quickly until AIS and Form 26AS are fully updated and validated
• Cross-check all data before filing to avoid defective return notices
• Be alert for utility updates on the official income tax portal
• Look for Form 16 and 16A, which should be released by 15th June 2025