Main Changes in ITR-5 for AY 2025-26

1. Capital Gains Split by Date of Sale

• Capital gains are now informed based on whether the asset was sold before or after July 23, 2024. This helps apply the new rules introduced by the Finance Act, 2024, more clearly.

2. Capital Loss on Share Buybacks Allowed (From Oct 1, 2024)

• From October 1, 2024, if you faced a loss when companies bought back your shares, you can claim that loss—if the related dividend was already shown as “Income from Other Sources.” This fixes earlier tax issues around buybacks.

3. Cruise Business Tax Reporting (Section 44BBC)

• The form now consists of a reference to Section 44BBC, which deals with how cruise ship businesses should report income under a simplified tax scheme. This supports the government’s focus on developing cruise tourism.

4. TDS Section Code Must Be Included

• To improve transparency, taxpayers must now mention the specific TDS (Tax Deducted at Source) section code in the TDS schedule. This helps the tax department better match TDS claims with what employers or businesses report.

Who Can File ITR-5?

The ITR-5 form can be filed by the following taxpayers:

• Firms
• LLPs (Limited Liability Partnerships)
• Association of Persons (AOPs)
• Body of Individuals (BOIs)
• Artificial Juridical Persons (AJPs)
• Estates of deceased or insolvent persons
• Business trusts and investment funds

Who Cannot Use It:

• Individuals
• Hindu Undivided Families (HUFs)
• Companies
• Entities required to file ITR-7 (like charitable or religious trusts)

When Will ITR Filing For AY 2025-26 Begin?

The Income Tax Department has already released ITR-1, ITR-3, ITR-4, and ITR-5 forms for the Assessment Year 2025-26 (which is for the financial year 2024-25). However, the actual process of filing income tax returns is likely to begin next week.

• The last date to file returns without an audit is July 31, 2025.
• For cases that need an audit, the deadline is October 31, 2025.