Quick Answer
14 min read|Updated: Apr 1, 2026|Income-tax
Quick Answer
The Income Tax Act 2025 retains the seven ITR forms (ITR-1 through ITR-7) but updates their internal structure to reflect new section numbers and introduces enhanced schedules. Key additions include Schedule VDA for cryptocurrency/virtual digital assets (mandatory in ITR-2, 3, 5, 6, 7), expanded Schedule FA for foreign assets, and refined Schedule AL for assets and liabilities.
- Section 44AD: Eligible businesses with turnover up to ₹3 crore (₹3 crore threshold applies when digital receipts are at least 95% of total receipts; otherwise ₹2 crore). Presumptive income at 8% of turnover (6% for digital receipts).
- Section 44ADA: Specified professionals (doctors, lawyers, architects, CAs, engineers, etc.) with gross receipts up to ₹75 lakh (₹75 lakh when digital receipts are 95%+; otherwise ₹50 lakh). Presumptive income at 50% of gross receipts.
- Section 44AE: Goods transport operators with up to 10 goods carriages.
- Total income must not exceed ₹50,00,000.
- Not available for: LLPs, persons with capital gains, foreign income, foreign assets, more than one house property, or income above ₹50 lakh.
Key changes: The turnover limits reflect the enhanced thresholds introduced in Budget 2023 (now codified in the 2025 Act). The digital receipts threshold for the higher limit is now a permanent feature. Advance tax for ITR-4 filers requires a single payment by 15 March.
ITR-5, ITR-6, ITR-7 — Entity Forms
ITR-5 (Firms, LLPs, AOPs, BOIs): Used by partnership firms, LLPs, associations of persons, bodies of individuals, cooperative societies, and local authorities. Changes include Schedule VDA addition, updated partner remuneration/interest limitation references, and re-mapped section numbers for firm taxation provisions.
ITR-6 (Companies): Mandatory electronic filing for all companies except those claiming Section 11 exemption. Key changes include updated MAT (Minimum Alternate Tax) computation schedules reflecting the 2025 Act provisions, Schedule VDA, enhanced CSR expenditure reporting, and updated depreciation schedules aligned with the new Act’s block asset rules.
ITR-7 (Trusts, Political Parties): For entities filing under Sections 11, 12A, and other exemption provisions. Changes include updated references to the registration and exemption framework under the 2025 Act, revised accumulation of income schedules, and Schedule VDA for trusts that may hold or receive virtual digital assets.
New & Enhanced Schedules — VDA, AL, FA
| Schedule | Purpose | Applicable Forms | Key Details Required |
|---|---|---|---|
| Schedule VDA | Virtual Digital Assets (crypto, NFTs) | ITR-2, 3, 5, 6, 7 | Date of transfer, date of acquisition, sale consideration, cost of acquisition, head of income, resulting gain/loss |
| Schedule AL | Assets & Liabilities disclosure | ITR-2, 3 (if income > ₹50L) | Immovable property, jewellery, vehicles, bank balances, shares/securities, loans given, liabilities/loans taken |
| Schedule FA | Foreign Assets & Income | ITR-2, 3, 5, 6, 7 | Foreign bank accounts, financial interests, immovable property, signing authority, trusts, equity/debt interests, income earned |
| Schedule 112A | LTCG on listed equity/units (grandfathered) | ITR-2, 3, 5, 6 | ISIN, share name, sale consideration, cost of acquisition, FMV as on 31-1-2018, LTCG computed |
| Schedule CG | Capital Gains (comprehensive) | ITR-2, 3, 5, 6 | All capital gains/losses by category — STCG (111A, normal), LTCG (112, 112A), exemptions (54, 54EC, 54F) |
| Schedule OS | Other Sources income (enhanced) | ITR-2, 3 | Dividends, interest, rental of P&M, online gaming winnings — now with separate line items for each category |
Pre-Filled ITR — AIS Data Integration
Under the 2025 Act, pre-filled ITR data has become significantly more comprehensive. The Income Tax e-filing portal now auto-populates the following from AIS/TIS and other databases:
- Salary income: Full Form 16 data including gross salary, exemptions, deductions, and TDS — sourced from employer’s quarterly returns (Form 24Q).
- Interest income: Bank FD interest, savings account interest, post office deposits, and interest on securities — sourced from bank reporting.
- Dividend income: Dividends from companies and mutual funds — sourced from company/AMC reporting.
- Securities transactions: Equity, mutual fund, and derivative transactions — sourced from stock exchange/depository reporting. Includes buy/sell dates, quantities, and amounts for capital gains computation.
- Property transactions: Sale and purchase of immovable property — sourced from sub-registrar offices.
- TDS/TCS credits: All TDS and TCS deducted/collected — sourced from Form 26AS.
- High-value transactions: Cash deposits, foreign remittances, credit card payments — sourced from bank reporting.
Taxpayer responsibility: Pre-filled data is indicative and must be verified. Add any income not captured by AIS (cash income, unreported transactions, income from informal sources). Correct any errors in pre-filled data. The legal responsibility for accuracy rests with the taxpayer, not the pre-fill system.
Schedule-by-Schedule Changes from 1961 Act Forms
| Schedule | Under 1961 Act Forms | Under 2025 Act Forms |
|---|---|---|
| Schedule S (Salary) | Section 15-17 references | Updated section numbers; standard deduction ₹75,000 pre-populated under new regime |
| Schedule HP (House Property) | Section 22-27 references | Updated references; ₹2L inter-head loss cap clearly marked; 30% standard deduction pre-calculated |
| Schedule BP (Business/Profession) | Section 28-44 references | Comprehensive re-referencing; depreciation schedule aligned with 2025 Act rates; 44AD/44ADA updated limits |
| Schedule CG (Capital Gains) | Section 45-55A references | Updated references; VDA gains separated into Schedule VDA; exemption sections re-numbered |
| Schedule VDA | Added as amendment in 2022 forms | Now a standard first-class schedule; more detailed reporting fields |
| Schedule VI-A (Deductions) | Sections 80C-80U references | Updated section numbers; new regime filers see limited deductions (NPS only); old regime filers see full list |
| Schedule FA (Foreign Assets) | 7 categories of foreign assets | Expanded categories; more granular reporting; beneficial ownership details; foreign trust reporting enhanced |
| Schedule AL (Assets/Liabilities) | For income > ₹50L | Same threshold; additional details for digital assets and cryptocurrency holdings |
| Schedule TDS/TCS | Manual entry + Form 26AS | Fully pre-filled from Form 26AS; taxpayer verifies and adjusts |
Non-ITR Forms — Complete Mapping (Old to New)
| Form | Purpose | Under 1961 Act | Under 2025 Act |
|---|---|---|---|
| Form 10-IEA | Opt-out of new regime (for business/profession income) | Form 10-IE (Section 115BAC) | Form 10-IEA (updated section references); filed before ITR due date |
| Form 67 | Foreign tax credit claim under DTAA or Section 91 | Form 67 (Rule 128) | Form 67 (updated rule references); must be filed before ITR due date |
| Form 10BA | Declaration for deduction under Section 80GG (rent paid) | Form 10BA (Section 80GG) | Form 10BA (updated section reference); same conditions |
| Form 15G | No-TDS declaration by individuals below 60 | Form 15G (Section 197A) | Form 15G (updated references); digital submission now standard |
| Form 15H | No-TDS declaration by senior citizens (60+) | Form 15H (Section 197A) | Form 15H (updated references); digital submission now standard |
| Form 16 | Salary TDS certificate (Part A + Part B) | Form 16 (Section 203) | Updated format reflecting 2025 Act deduction sections; new regime computation as default |
| Form 16A | Non-salary TDS certificate | Form 16A (Section 203) | Updated section references; auto-generated from TRACES |
| Form 26AS | Annual Tax Statement | Tax credits + high-value transactions | Consolidated with AIS; now primarily for TDS/TCS credit verification |
| Form 12BB | Employee declaration for tax savings/exemptions | Form 12BB (Rule 26C) | Updated; primarily relevant for old regime filers; new regime filers have minimal declarations |
Tax Audit Forms — 3CA, 3CB, 3CD
Tax audit under Section 44AB (or its equivalent under the 2025 Act) is mandatory when business turnover exceeds ₹1 crore (₹10 crore if 95%+ digital transactions and cash receipts/payments are each below 5% of total) or professional gross receipts exceed ₹50 lakh.
- Form 3CA: Audit report by a Chartered Accountant when the assessee is already required to get accounts audited under another law (e.g., Companies Act 2013). Certifies that the accounts have been audited and the Form 3CD particulars are attached.
- Form 3CB: Audit report when the assessee is not required to get accounts audited under any other law. Commonly used by proprietors, professionals, and firms without statutory audit requirements.
- Form 3CD: The detailed statement of particulars that accompanies both 3CA and 3CB. Contains 44 clauses covering: nature of business, books maintained, method of accounting, depreciation details, deductions claimed, TDS compliance, related party transactions, and compliance with specified provisions.
Changes under 2025 Act: Form 3CD clause references have been re-mapped to the 2025 Act sections. Clause 21 (depreciation) references new depreciation schedules. Clauses relating to set-off and carry forward of losses, disallowance provisions, and deemed income sections now point to the 2025 Act. The audit must be completed and uploaded to the e-filing portal before the ITR filing due date (31 October for audit cases).
Summary of All Changes from 1961 Act
- Form numbers retained: ITR-1 through ITR-7 continue with the same names (Sahaj, Sugam) and broad eligibility. No new ITR form numbers have been introduced.
- Section cross-references updated: Every internal reference in all forms has been mapped from the 1961 Act to the 2025 Act section numbers.
- Schedule VDA standardised: Previously added as a patch in AY 2023-24, now a permanent first-class schedule in ITR-2, 3, 5, 6, and 7.
- Schedule FA expanded: More granular foreign asset reporting with additional categories and beneficial ownership details.
- Pre-fill as default: AIS-based pre-filling is now the standard starting point for all e-filed returns, significantly reducing manual data entry.
- New regime as default: All forms default to the new tax regime; old regime requires affirmative selection (plus Form 10-IEA for business/profession income earners).
- Digital turnover thresholds: ITR-4 eligibility reflects the enhanced 44AD (₹3 crore) and 44ADA (₹75 lakh) limits for digital-first businesses.
- Transition of losses: The transition provisions ensure that losses determined and carry-forward claims made under the 1961 Act are honoured under the 2025 Act forms.
Expert Tip — CA V. Viswanathan
The most common filing mistake is selecting the wrong ITR form. If you have even one equity or mutual fund capital gains transaction, you cannot use ITR-1 — you must use ITR-2 or ITR-3. Filing in the wrong form triggers a defective return notice under Section 139(9) and you get only 15 days to rectify. Use the form selection matrix above carefully. Also, do not ignore Schedule FA if you hold any foreign bank account, foreign shares (even through global MF platforms), or foreign property — non-disclosure of foreign assets attracts Black Money Act penalties of ₹10 lakh per year.
Key Takeaways
- ITR form numbers (ITR-1 to ITR-7) remain unchanged under the 2025 Act — only internal references and schedules have been updated.
- Schedule VDA (crypto/virtual digital assets) is now a standard schedule in ITR-2, 3, 5, 6, and 7.
- Schedule FA (foreign assets) has been expanded with more detailed reporting requirements.
- Pre-filled ITR from AIS data is the default — always verify before submitting.
- New tax regime is the default selection in all forms; opt out via Form 10-IEA if needed.
- ITR-4 (Sugam) eligibility thresholds: ₹3 crore turnover (44AD) and ₹75 lakh receipts (44ADA) for digital-heavy businesses.
- Form 3CD (tax audit) clause references have been comprehensively re-mapped to 2025 Act sections.
- Losses determined under the 1961 Act are carried forward under the 2025 Act forms through transition provisions.
For form selection assistance, ITR filing, or tax audit compliance, contact Virtual Auditor. See our ITR filing guide for the complete e-filing procedure, and our professional ITR filing services for end-to-end support. For slab rate comparison between regimes, refer to our dedicated guide.
Frequently Asked Questions
Have the ITR form numbers changed under the Income Tax Act 2025?
No. The core form numbers (ITR-1 through ITR-7) remain the same. The internal section references, schedule structures, and certain eligibility criteria have been updated to align with the 2025 Act. New schedules like Schedule VDA have been incorporated as standard elements, and pre-filled data from AIS is now the default starting point.
Who can file ITR-1 (Sahaj) for AY 2026-27?
ITR-1 is for resident individuals with total income up to ₹50 lakh from: salary/pension, one house property, other sources (interest, family pension, dividends up to ₹5,000), and agricultural income up to ₹5,000. It cannot be used by NRIs, company directors, holders of unlisted shares, or persons with capital gains, crypto income, or foreign assets.
What is Schedule VDA in the new ITR forms?
Schedule VDA is a dedicated schedule for reporting income from Virtual Digital Assets (cryptocurrency, NFTs, etc.). It requires date of transfer, date of acquisition, sale consideration, cost of acquisition, and resulting gain/loss. This schedule is mandatory in ITR-2, ITR-3, ITR-5, ITR-6, and ITR-7. ITR-1 and ITR-4 do not include it — persons with VDA income must use ITR-2 or ITR-3.
What is Schedule AL and when is it mandatory?
Schedule AL (Assets and Liabilities) is mandatory for individuals and HUFs with total income exceeding ₹50 lakh. It requires disclosure of immovable property, movable assets (jewellery, vehicles, bank balances, shares, insurance policies), and liabilities (loans). It appears in ITR-2 and ITR-3. The Income Tax Department uses this data to track wealth accumulation against declared income.
What is pre-filled ITR and should I rely on it?
Pre-filled ITR auto-populates salary, TDS, interest, dividends, securities transactions, and property data from AIS/TIS and Form 26AS. While it significantly reduces data entry, you must verify every field. Add income not captured (cash transactions, informal income) and correct errors. Legal responsibility for the return’s accuracy rests entirely with you, not the pre-fill system.
What is Form 10-IEA and when do I need to file it?
Form 10-IEA is the declaration for opting out of the new tax regime. Since the new regime is default, individuals and HUFs with business/professional income must file Form 10-IEA before the ITR due date to be taxed under the old regime. Salaried employees without business income can switch regimes each year without this form — they simply intimate their employer. Once filed, the choice is binding for that year.
What are Forms 3CA, 3CB, and 3CD for tax audit?
Form 3CA is the audit report when accounts are already audited under another law (Companies Act). Form 3CB is the audit report when no other audit is required. Form 3CD is the statement of particulars (44 clauses covering income details, deductions, depreciation, TDS compliance) accompanying both 3CA and 3CB. Under the 2025 Act, clause references in 3CD have been re-mapped to new section numbers.
What is Form 15G/15H and has it changed under the 2025 Act?
Form 15G (for individuals below 60) and Form 15H (for senior citizens 60+) are self-declarations to request non-deduction of TDS when total income is below the taxable limit. Under the 2025 Act, the format and purpose remain the same — only internal section references have been updated. Digital submission is now the standard method at most banks and institutions.
What is Form 67 for foreign tax credit?
Form 67 is used to claim foreign tax credit (FTC) for taxes paid in another country, under the applicable Double Taxation Avoidance Agreement (DTAA) or unilateral relief under Section 91. It must be filed before the ITR due date. You need to provide country details, nature and amount of income, foreign tax paid, and credit claimed. Under the 2025 Act, section references are updated but requirements are substantively the same.
How are losses from the 1961 Act carried forward into 2025 Act ITR forms?
The transition provisions of the Income Tax Act 2025 ensure that all losses determined and carry-forward claims made under the 1961 Act are honoured. If you had a business loss from AY 2024-25 determined under the 1961 Act, it will appear in the carry-forward schedules of your AY 2026-27 ITR filed under the 2025 Act. The remaining carry-forward period continues from where it was — no fresh counting of years.
