Published by ARMR & ASSOCIATES ON 09-06-2025
The Income Tax Department has introduced major changes in the Income Tax Return (ITR) forms for Assessment Year (AY) 2025β26, especially with the addition of new Annexures. If you’re a taxpayer, accountant, or financial advisor, this update is crucial for ensuring accurate and timely filing.
Letβs break down everything you need to know about the new annexures β what they are, who needs to file them, and how they affect your return.
π What Are Annexures in ITR?
Annexures are supplementary schedules or attachments that provide detailed financial or transactional information to support the figures reported in your ITR. Think of them as your supporting evidence.
π Whatβs New in ITR for AY 2025β26?
The Central Board of Direct Taxes (CBDT) has revised ITR forms and introduced new annexures, especially in ITR-3, ITR-5, and ITR-6, to improve transparency and plug compliance gaps. Here are the key additions:
πΆ Annexure β Salary Breakup (for ITR-1 & ITR-2)
- Now, you must break down your salary income into basic, HRA, allowances, perquisites, retirement benefits, etc.
- This aligns with Form 16 and AIS/TIS data and helps auto-validation.
πΆ Annexure β Capital Gains Details
- More granular reporting required: scrip-wise details, ISIN codes, dates of acquisition and sale, cost, and sale consideration.
- Applies to both listed and unlisted securities, property, and mutual funds.
πΆ Annexure β Business/Professional Receipts (in ITR-3 & ITR-5)
- Introduced for professionals and business owners.
- Requires breakup of turnover/receipts, mode of receipt (cash, online, cheque), and reconciliation with GST returns.
πΆ Annexure β Foreign Assets & Income (Schedule FA)
- Mandatory for residents having foreign income or assets.
- Must include bank accounts, stocks, partnerships, real estate, etc. held outside India.
πΆ Annexure β Nature of Business/Profession Code
- Businesses must now choose from a specific list of codes for their profession/business activity for better classification.
πΆ Annexure β Depreciation Schedule (Revised)
- Now split into tangible vs intangible, block-wise depreciation calculation.
- Detailed reporting expected for additions, deletions, and WDV carried forward.
π‘ Why Are These Changes Important?
- β Better alignment with AIS/TIS data
- β Helps the ITD auto-populate & verify returns
- β Reduces the risk of mismatches and scrutiny
- β Promotes data transparency in capital gains and business income
π₯ Who Must Be Extra Cautious?
- Salaried individuals with multiple allowances
- Freelancers and small business owners under ITR-3
- Investors with frequent stock/mutual fund transactions
- Taxpayers with foreign income or assets
- Companies and LLPs filing ITR-5 or ITR-6
π οΈ Pro Tips for Smooth Filing
- Match with AIS/TIS and Form 26AS
- Maintain accurate records of purchases & sales
- Use the correct business/profession codes
- Reconcile GST turnover (if applicable)
- Consider using a CA or professional tool if the annexures are complex
π© Need Expert Help?
The new ITR annexures for AY 2025β26 bring much-needed transparency, but also more responsibility. Whether you’re a salaried employee, a business owner, or an investor, getting professional help can make the process smoother.
π ARMR & ASSOCIATES offers:
- Income Tax Filing Services
- Capital Gain Computation
- Business Reconciliation
- GST + ITR Mapping
π Reach out now for expert guidance and timely filing.
Stay informed. Stay compliant. File smart.
