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

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

The Central Board of Direct Taxes (CBDT) has officially notified the income tax return (ITR) Form-5 for the assessment year 2025-26 (Income earned in financial year 2024-25), bringing in numerous important updates in line with recent legislative amendments. The notice was released on May 1, 2025, and includes changes resulting from the Finance Act, 2024.

Kind attention Taxpayers!

CBDT notifies ITR-Form 5 for AY 2025-26 vide Notification No. 42/2025 dated 01.05.2025.

Key updates:
🖋️ Schedule-Capital Gain split for gains before/ after 23.07.2024 (post changes in Finance Act, 2024)
🖋️Capital loss on share buyback allowed if… pic.twitter.com/fDhRKHKPO9

— Income Tax India (@IncomeTaxIndia) May 3, 2025

After releasing ITR-1 and ITR-4 on April 29, and ITR-3 on April 30, the Income Tax Department has now issued the ITR-5 form for the Assessment Year 2025-26. The department has also made it simpler for individuals with long-term capital gains (LTCG) of up to Rs. 1.25 lakh from listed shares to file their returns.