ITR: Amendments Made in Capital Gains, Buyback Loss and TDS Rule

If you fall under a partnership company, LLP (Limited Liability Partnership) and AOP (Association of Persons), then you must be aware of the newly launched ITR.

Key Tax Changes Introduced in New ITR-5 for FY 2024-25

Saloni Kumari | May 3, 2025 |

ITR: Amendments Made in Capital Gains, Buyback Loss and TDS Rule

Changes made in ITR-5

If you fall under a partnership company, LLP (Limited Liability Partnership) and AOP (Association of Persons), then you must be aware of the newly launched Income Tax Return (ITR). Through Notification No. 42/2025, the Central Board of Direct Taxes (CBDT) has announced the ITR Form-5 for the assessment year 2025-26 (Income earned in the financial year 2024-25). The notification was made effective from April 1, 2025. In the notification, it was discussed about amendments that can affect reporting, deductions, and refund timelines of an individual.

Also Read
Income Tax Department Releases ITR-5 Form for AY 2025-26: Here’s What’s New and Who Should File It

Table of Content
  1. Capital Gains Now Divided by Important Date
  2. Buyback Losses Need Declared Dividends
  3. Tax Relief for the Ocean Travel Industry
  4. TDS Section Codes Are Now a Must
  5. Digital-First and AI-Ready

Capital Gains Now Divided by Important Date

  • A major change has been made in Schedule CG (Capital Gains section). Now, capital gains must be notified in two parts:
  • Before July 23, 2024: This is for transactions that happened before the new Finance Act rules started.
  • On or after July 23, 2024: For gains or losses after the rule change, this split helps apply the correct tax rules and gives tax officers a clearer record to check during audits.

Buyback Losses Need Declared Dividends

  • From October 1, 2024, individuals will only be allowed to claim losses from share buybacks if they have already shown the related dividend income under ‘Income from Other Sources.’
  • This rule is meant to prevent misuse and make sure only genuine losses are claimed.

Tax Relief for the Ocean Travel Industry

  • A new section, i.e., 44BBC has been introduced for Ocean Travel Firms.
  • They can now pay tax based on a selected percentage of total income, instead of calculating actual profits.
  • This shortens the tax filing process and supports India’s goal to encourage tourism.

TDS Section Codes Are Now a Must

  • You must now mention the accurate section number (Such as 194A for interest or 194C for contracts) while claiming tax deducted at source (TDS).
  • This assists the tax department in matching TDS details more accurately, reducing errors and refund delays.

Digital-First and AI-Ready

  • The new ITR-5 form is designed for easy online filing.
  • It also works well with the tax department’s AI-based checking system, which means fewer mistakes but also stricter monitoring.

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Author Bio
Saloni Kumari
Designation: Content Writer
Company: StudyCafe
Location: Delhi, India
Total Posts: 1589

Saloni is a content writer gaining experience in Writing Articles in Finance Domain. At studycafe.in she writes content for Finance News, GST Income Tax Etc. She can be reached at [email protected].

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