Filing your income tax return is something most of us do every year, but the forms themselves have changed quite a bit over time! Let’s take a look at the major changes that happened in ITR forms over the past 15 years – so you can see how compliance has evolved, what new disclosures were introduced, and how the government made forms simpler (or more detailed!) over time.

Here’s a year-by-year breakdown:

ITR-1 to ITR 4 have been released by the income Tax Department for A.Y. 2025-26. There are major changes that have been made by the Department. We have penned those changes that have been made by Department.

The following changes are applicable for Old Regime.

Now it is mandatory to report the following.

1. House Rent Allowances

• • Place of Work
  • Actual HRA Received
  • Actual Rent Paid
  • Basic salary

2. For 80C Deduction, now it is mandatory to report the Insurance Policy Number or Document Identification Number, /UAN (Universal Account Number) for EPF deduction under Section 80C.

3. For 80CCC/80CCD(1)/ 80CCD(1B) It is mandatory to report the PRAN (Permanent Retirement Account Number) of the Taxpayer in the income tax return.

4. For 80D Deduction: Health Insurance

• • Name of Insurance Company
  • Policy Number

5. For Section 80DD/ 80U

Now requires the following:-

• Acknowledgment number of the disability certificate as per rule 11(A)(2)(ii).
• Type of disability(Autism, Cerebral Palsy or Multiple disabilities and others)

6. 80DDB Deduction Medical Treatment of specified Disease: Name of Specified Disease

7.80E Deduction: Interest on loan taken for higher education, now asks for the following additional disclosures

• • Loan taken from
  • Name of bank which loan is taken
  • Loan account number of Bank
  • Date of Sanction of Loan
  • Total amount of Loan
  • Loan outstanding as on 31^st march

• • Loan taken from
  • Name of bank from which loan is taken
  • Loan account number of Bank
  • Date of Sanction of Loan
  • Total amount of Loan
  • Loan outstanding as on 31^st march

9. 80EEA Deduction: Interest on loan taken for Certain House Property, now asks for the following additional disclosures

• • Loan taken from
  • Name of bank from which loan is taken
  • Loan account number of Bank
  • Date of sanction of Loan
  • Total amount of Loan
  • Loan outstanding as on 31^st march

• • Loan taken from
  • Name of bank from which loan is taken
  • Loan account number of Bank
  • Date of sanction of Loan
  • Total amount of Loan
  • Loan outstanding as on 31^st march
  • Vehicle registration number

11. Section 10(13A)

For those claiming House Rent Allowance (HRA) as an exemption, the following details are now mandatory:

1. Place of Work: Specify whether your work location is in a metro or non-metro city. This distinction is crucial as HRA exemptions differ based on city classification
2. Actual HRA Received: Report the total HRA amount received during the financial year.
3. Actual Rent Paid: Mention the total rent paid for your accommodation.
4. Basic Salary + DA: Provide the sum of your basic salary and dearness allowance (DA), which forms the basis for HRA calculation.

• • Loan taken from
  • Name of bank from which loan is taken
  • Loan account number of Bank
  • Date of sanction of Loan
  • Total amount of Loan
  • Loan outstanding as on 31^st March

• The following changes are applicable for Old Regime as well as New Regime.

• Higher exemption limit for LTCG in ITR-1 and ITR-4: Taxpayers with up to ₹1.25 lakh of equity long-term capital gains (LTCG) can now file the simpler ITR-1/ITR-4. Previously, this limit was ₹1 lakh.
• No Aadhaar enrolment ID ITR-1, 2, 3, 4: The option to enter an Aadhaar Enrolment ID has been removed. Taxpayers must now quote their actual Aadhaar number.
• New TDS details ITR-1, 2, 3, 4: Taxpayers need to mention the section under which TDS was deducted, making matching of credits easier.
• Opt-out details in ITR-2,3,4: If you opted out of the new tax regime in the past (via Form 10-IEA), ITR-2,3,4 now asks for those details.
• Capital gains changes ITR-2, 3, 4: The forms ask for sale dates to apply old/new capital gains rules (since Budget 2024 changed indexation rules mid-year).
• Unlisted bonds reporting ITR-2, 3, 4: Gains from unlisted bonds must be reported separately due to changes in their tax treatment.
• Buy-back proceeds ITR-2, 3, 4: Starting October 2024, buy-back proceeds from listed companies are treated as dividends. Forms now have fields for that.
• Asset disclosure threshold ITR-2, 3: There is good news for taxpayers having income above Rs 50 lakh. From this year, a taxpayer is required to fill the assets/liabilities schedule now applies only if gross total income exceeds ₹1 crore (raised from ₹50 lakh).

• Separate reporting of capital gains before and after July 23, 2024, as per the Finance Act,  2024 provisions has been incorporated.
• Capital loss on share buybacks can be claimed if related dividends are reported under ‘Income from Other Sources’ (effective from October 1, 2024).
• Asset and liability reporting is now mandatory only if total income exceeds INR 1 Crore.
• Taxpayers must now specify the tax deducted at source (TDS) section code in the return.

• Capital gains must be reported before/after July 23, 2024, in line with Finance Act changes.
• Capital loss on buyback claimable if related dividends are disclosed appropriately.
• Asset & liability reporting threshold increased from INR 50 lakh to INR 1 Crore.
• Section 44BBC introduced for taxpayers engaged in cruise or ship operations.
• TDS schedule now requires section code disclosures.

• Audit verification: Businesses under tax audit were allowed to verify their ITR using EVC instead of a mandatory digital signature.
• Due-date dropdown: ITR forms allowed you to pick your applicable filing due date.
• Default new tax regime: The new tax regime became the default. Taxpayers had to explicitly opt out if they want to continue under the old regime.
• Legal Entity Identifier (LEI): As per the RBI Regulations, all single payment transactions of INR 50 crores and above undertaken by entities (non-individuals) should include remitter and beneficiary LEI information. This applies to transactions undertaken through the NEFT and RTGS payment systems. Companies and large taxpayers were mandated to furnish their LEI if they claim refunds over ₹50 crore.

• Individuals/HUFs liable for audit can verify ITR using EVC: Rule 12 has been got amended to allow individuals and HUF who are liable to tax audits under Section 44AB to verify the return of income through an electronic verification code. Earlier, they could verify the returns only through digital signature.

• Receipts in cash field: To claim the higher presumptive turnover limit, you need to declare how much of your receipts were in cash. The turnover threshold limit from INR 2 crores to INR 3 crores for opting for the presumptive taxation scheme under Section 44AD if the receipts in cash do not exceed 5% of the total turnover or gross receipts for the previous year. It is also provided that the meaning of cash would include the cheque or a bank draft, which is not an account payee. Similarly, Section 44ADA was amended to enhance the threshold limit of gross receipts from INR 50 lakhs to INR 75 lakhs, if the receipts in cash do not exceed 5% of the total gross receipts for the previous year. To give effect to the above amendments, the CBDT amended ITR forms to include a new column of “receipts in cash” for disclosing cash turnover or cash gross receipts under the Schedule BP.

• Furnishing of acknowledgement number of the Audit Report and UDIN [ITR 3, 5 and 6]

When providing information about audits conducted under Section 44AB, including audit under Section 92E, companies were mandated to furnish the acknowledgment number of the audit report and the UDIN.

• Disclosure of Payments to MSMEs Beyond the Prescribed Time Limit [ITR 3, 5 and 6]

Section 43B of the Income Tax Act allows certain deductions only on actual payment, even for those using the mercantile system of accounting. The Finance Act 2023 added a new clause (h) to Section 43B.

Now, any amount payable to a micro or small enterprise beyond the time limit specified in Section 15 of the MSME Act, 2006 will not be allowed as a deduction.

Accordingly, the ITR forms incorporated a new column in Part A-OI (Other Information) to disclose such sums that remain unpaid beyond the allowed period.

• Reporting of Capital Gains Accounts Scheme (CGAS) Details [ITR 2, 3, 5 and 6]

Previously, taxpayers needed to mention only the amount deposited in the CGAS to claim exemptions on capital gains.

• Date of deposit
• Account number
• IFSC code

This aimed to improve transparency around exemption claims.

• Reporting Winnings from Online Games [ITR 2, 3, 5 and 6]

The Finance Act 2023 introduced Section 115BBJ to tax winnings from online games, effective from AY 2024–25. TDS on such winnings is covered under Section 194BA.

Schedule OS in the ITR forms got a dedicated section to report these winnings separately.

• For Schedule 80GGC for Contributions to Political Parties [ITR 2, 3, 5, and 6]

Section 80GGC allows deductions for donations to political parties or electoral trusts.

FY 2023-24 ITR forms required more detailed reporting in Schedule 80GGC:

• Date of contribution
• Amount (split by cash/other modes)
• Eligible contribution amount
• Transaction reference (e.g. UPI/cheque/IMPS/NEFT/RTGS)
• IFSC code of the bank
• This ensures better traceability of such contributions.

• Additional Details in ‘Tax Deferred on ESOP’ Schedule [ITR 2 and 3]

Employees of eligible startups can defer tax payment on ESOP perquisites.

The ‘Schedule – Tax Deferred on ESOP’ asked for the following additional Information:

• PAN of the employer (startup)
• DPIIT Registration number

This improves monitoring of deferred tax obligations.

• New Column for Deduction under Section 80CCH [ITR 1, 2, 3 and 4]

Section 80CCH was introduced for individuals enrolled under the Agnipath Scheme. They can claim a deduction for amounts deposited in the Agniveer Corpus Fund.

FY 2023-24 ITR forms incorporated a dedicated field to report this deduction.

• For Schedule 80U for Disabled Individuals [ITR 3]

Previously, the deduction under Section 80U was claimed in Schedule VI-A.

FY 2023-24 ITR-3 included a separate Schedule 80U, asking for:

• Nature of disability
• Date of filing Form 10-IA
• Acknowledgement number of Form 10-IA
• UDID number (if available)

• For Schedule 80DD for Dependents with Disability [ITR 2 and 3]

Section 80DD offers deductions for expenses incurred on medical treatment or insurance for a dependent with disability.

A new Schedule 80DD got added, asking for:

• Nature of disability
• Type of dependent (e.g. spouse, child, parent)
• PAN and Aadhaar of the dependent
• Date and acknowledgement number of Form 10-IA
• UDID number

• Reporting Dividend Income from IFSC Units [ITR 2, 3, 5 and 6]

The Finance Act 2023 reduced the tax rate on dividends from IFSC units to 10%.

Schedule OS incorporated a specific column to report such income at the reduced rate.

• Reporting Bonus from Life Insurance Policies [ITR 2 and 3]

New rules tax certain sums received from high-premium life insurance policies under Section 56(2)(xiii).

ITR forms included an extra column in Schedule OS to declare such bonus payments.

• Reporting Sums Received from Business Trusts [ITR 2, 3 and 5]

The Finance Act 2023 inserted Section 56(2)(xii) to tax certain sums received by unitholders of business trusts.

Schedule OS included a new column to report such income, ensuring proper taxation.

• Disclosure of All Bank Accounts [ITR 2, 3 and 5]

Taxpayers were mandated to disclose all bank accounts held at any time during the year (excluding dormant accounts). This is required for better compliance and verification.

• Adjustment of Unabsorbed Depreciation for 115BAC [ITR 3 and 5]

Under the concessional tax regime in Section 115BAC, unabsorbed additional depreciation cannot be carried forward.

ITR forms incorporated the provision of this unabsorbed depreciation to be added back to the WDV of assets as on 01-04-2023 in Schedule DPM.

• For Schedule 80-IAC for Startups [ITR 5 and 6]

Startups claiming deduction under Section 80-IAC were mandated to fill a new schedule, providing:

• Date of incorporation
• Nature of business
• Certificate number from Inter-Ministerial Board
• First AY of claiming deduction
• Amount of deduction claimed for current AY

• For Schedule 80LA for IFSC and Offshore Banking Units [ITR 5 and 6]

Section 80LA offers deductions to offshore banking units and IFSC entities.

The Schedule 80LA asks for:

• Type of entity
• Type of income
• Authority granting registration
• Date and number of registration
• First AY of deduction
• Amount claimed for current AY

• Schedule 115TD for Tax on Accreted Income [ITR 5 and 6]

Entities losing charitable status must pay tax on “accreted income” (the excess of FMV of assets over liabilities).

Schedule 115TD now requires:

• Computation of accreted income
• Tax payable
• Challan details for tax payment

• New Field added for Opting Concessional Regime under Section 115BAE [ITR 5]

A new concessional tax regime for manufacturing co-operative societies was introduced.

ITR-5 includes fields to declare:

• Whether the society opts for Section 115BAE
• Date of filing Form 10-IFA
• Acknowledgement number

• Crypto/VDA disclosure: Forms added dedicated sections for income from cryptocurrencies and other Virtual Digital Assets (VDAs). Details required: acquisition date, transfer date, cost, and consideration.
• Self-occupied” checkbox removed for companies: Companies can’t claim house property as self-occupied, so that option is removed from ITR-6.

• FII/FPI SEBI Registration Number: Foreign investors must now provide their SEBI reg. number.

• Partnership changes details: ITR-5 now asks for PAN of partners and remuneration of retiring partners.
• Disclosure of ‘Advances’ in balance sheet (ITR-3):

Now split into:

Advances from specified persons (Sec 40A(2)(b))

Advances from others.

• Detailed breakup of investments in Balance Sheet (ITR-7): Need split between Sec 11(5) and other investments.
• Income taxable under Section 115BBI: New Schedule 115BBI for reporting 30% tax on certain specified income.

• Donation ARN: To claim 80G donations, you now need to enter the unique receipt/acknowledgment number (Form 10BE).
• TCS of other persons: Taxpayers can now claim credit for tax collected at source (TCS) on income that technically belongs to someone else (rare but allowed in law).

• Pensioner details ITR-1, ITR-2: You must specify the exact pension source—

central govt,

state govt,

PSU, or others.

• EPF excess interest ITR-1, ITR-2, ITR-3, ITR-4: Interest on employee PF contributions over ₹2.5 lakh is taxable; this has to be reported separately.
• Property sales ITR-2, ITR-3: Both purchase and sale dates of immovable property must be entered for capital gains calculation.
• Improvement costs ITR-2, ITR-3: Must give year-wise details of property improvements.
• Residency conditions ITR-2, ITR-3: Forms ask detailed questions about days spent in India to establish your residency status.
• ESOP tax deferral ITR-2, ITR-3: New Schedule – Tax Deferred on ESOP for employees of eligible startups deferring perquisite tax.

Must report:

Assessment year of deferral

Amount of deferred tax

Tax payable in the current year

Balance to be carried forward.

• Foreign assets ITR-2, ITR-3: Clarified that foreign assets must be reported for the calendar year.
• Schedule DI removed

Introduced only for AY 2021–22 (COVID relief for late investments).

For AY 2022–23 it was removed.

• TDS/TCS schedule updates ITR-1 to ITR-6:

Enhanced matching with Form 26AS.

Better fields for TDS on cash withdrawals (Section 194N).

• NPS Tier II deduction clarity ITR-1, 2, 3, 4: Deductions under Section 80C for NPS Tier II (for Central Govt employees) included with clear reporting.

Tax Regime choice ITR-1, 2, 3, 4: Confirm if taxpayer opts for old or new regime under Section 115BAC.

• No option to carry forward TDS deducted under section 194N: (ITR 2 to 7): In case of tax deducted under section 194N, credit for such tax deducted shall be allowed in the assessment year relevant to previous year in which such tax has been deducted. If any excess TDS is deducted during the year under section 194N, then it shall be claimed as refund in the same year only. Hence, there is no option to carry forward TDS deducted under section 194N to subsequent years, it can be claimed in the A.Y. relevant to previous year in which such TDS has been deducted.
• Dividend income: After abolition of Dividend Distribution Tax (DDT), dividend became taxable in the hands of shareholders. ITR forms added new fields for it.
• Increase in threshold limit for Tax Audit: (ITR-3 & 6) : The audit limit increased from ₹1 crore to ₹10 crore for businesses with ≤5% cash receipts.

All receipts in cash during the previous year does not exceeds 5% of such receipts. · All payments in cash during the previous year does not exceeds 5% of such payments

The ceiling limit for the A.Y 2020-21 was Rs.5 Crores as against Rs.10 Crores for the A.Y 2021-22 and hence necessary changes have been brought in the ITR forms to enhance the limit.

• Assessee cannot file ITR-1 & ITR-4 in case of deferment of tax on ESOPs: (ITR 1 & 4) The Finance Act, 2020 has allowed to defer the payment or deduction of tax on ESOPs allotted by an eligible start-up referred under Section 80-IAC. Consequently, Rule 12 has been amended to provide that an assessee in whose case payment or deduction of tax in respect of such ESOPs has been deferred shall not be eligible to furnish his return of income in ITR-1 and ITR-4. Corresponding changes have been made to ITR-1 and ITR-4. Therefore, reporting of amount deferred in respect of ESOPs needs to be disclosed in ITR 2 or ITR 3 in Part-B of schedule TTI (computation of tax liability on total income).
• Introduction of Section 80M [ITR 6] Section 80M was introduced by the Finance Act, 2020 to provide a deduction to a domestic company for the amount received as dividend from another domestic company, a foreign company or a business trust. The deduction is allowed when the company further distributes the dividend to the shareholders. Deduction can be claimed for an amount received by way of dividend to the extent it is further distributed as dividend on or before one month prior to the due date of furnishing the return of income. ITR forms for the assessment year 2021-22 have been accordingly modified to include Section 80M in Schedule VI-A so as to enable the company to claim the said deduction.

• Increase in safe harbour limit prescribed under Section 50C [ITR 2, 3, 5 & 6] Section 50C lays down the special provision for determination of full value of consideration in case of transfer of land or building or both. As per the said provision, where the consideration received/accrued is less than the stamp duty value (SDV) adopted by the state government, then such stamp duty shall be deemed to be the full value of consideration. Earlier, this provision was not applicable if the value adopted for the payment of stamp duty was upto 105% of the consideration received. The Finance Act, 2020, has increased such tolerable limit from 105% to 110% from Assessment Year 2021-2022. Consequential changes have been made in the ITR forms.

• Date of cash donation in case of deduction under Section 80GGA [ITR 2, 5 & 6]: Section 80GGA provides deduction for the donations made by an assessee who is not earning income under the head ‘profits and gains of business or profession’. No deduction is allowed for the cash donation in excess of Rs. 2,000. ITR-2, 5 and 6 contain a Schedule 80GGA which requires separate reporting of the donation made in cash and donation made through other modes. The ITR forms notified for Assessment year 2021-2022 requires additional disclosures of the date on which such cash donation has been made.

• Nature of business code to be mentioned if assessees is claiming deduction under Section 80P [ITR5] : Schedule 80P of the ITR requires the assessee to furnish various information relating to income and the amount of deduction. ITR form for the assessment year 2021-22 has inserted one more column in the Schedule 80P. This column requires the assessee to provide the nature of business code in front of various types of income of such person.

• No need to bifurcate carried forward losses into Pass through losses and Normal losses [ITR 2, 3, 5 & 6] Losses carried forward by an assessee has same treatment under the Income-tax Act P a g e | 10 even if they are in nature of pass-through losses. Old ITR forms bifurcated the losses under the head House property and Capital gains in Schedule CFL between passthrough losses and Normal losses. However, ITR utilities issued by the department does not require any such bifurcation. To bring the ITR forms in line with the ITR utilities issued by department, ITR forms notified for the assessment year 2021-2022 has removed such bifurcation and now consolidated figure of such losses is to be disclosed.

• Additional question for ensuring the compliance under Section 92E [ITR 3, 5, 6] ITR forms for Assessment year 2021-22 has inserted a new question as to if the assessee was liable to obtain a Transfer Pricing report under section 92E, then whether he has actually complied with such requirement or not. And after clicking yes, the assessee is required to furnish the date of filing of report. Finance Act, 2021 has amended section 43(6) to provide that if goodwill forms a part of an existing block of assets, then the WDV as on 01/04/2020 of that block of asset has to be recomputed in the prescribed manner. Apparently, it seems that the ITR forms notified does not require the assessee to report the prescribed manner of calculation.

• Simplified forms: Previous forms like ITR-2A and ITR-3 were merged to reduce the number of forms.
• Aadhaar requirement: Quoting Aadhaar (or enrolment ID) became mandatory (after the Hon’ble Supreme Court’s Judgement)
• 80EE field: For claiming the ₹50,000 home loan interest deduction for first-time buyers.
• Asset disclosure threshold: Only those with income over ₹50 lakh need to fill the assets/liabilities schedule.

• Company directors and unlisted shares: Such taxpayers can no longer use ITR-1; they must file ITR-2.
• Salary schedule ITR-1, 2, 3, 4: Detailed salary fields aligned with Form 16:

Basic salary

Perquisites

Profits in lieu of salary

Deductions u/s 16

Easier TDS verification with Form 16 and 26AS

• Other sources ITR-1, 2, 3, 4: More detailed reporting for interest income.

Savings account interest

Fixed deposit interest

Other interest

           Goal: Better matching with TDS Form 26AS.

• 80TTB for seniors ITR-1, 2, 3, 4: Deduction for interest income up to ₹50,000 for senior citizens added.
• Residential status ITR-2, 3: More detailed questions about days in India.

Days in India current year

Days in preceding years

Classification as Resident / RNOR / Non-Resident

Purpose: To apply correct tax rules for NRIs.

• Equity LTCG ITR-2, 3: Forms added fields to capture 10% tax on LTCG above ₹1 lakh.(Section 112A).
• Buyer details ITR-2, 3: When selling property, you need to provide buyer details.

PAN, name, share of ownership

Purpose: Better cross-verification of property transactions.

• Agriculture Schedule EI): Taxpayers with agriculture income of more than Rs 5 lakhs, have to fill up ITR 2. ITR 2 asks for additional details such as the name of the district with pin code, measurement of agricultural land, whether owned/leased, etc. under exempt income schedule.
• Foreign assets ITR-2, 3: Schedule FA expanded to capture more details.

Foreign bank accounts

Financial interest in entities

Immovable property abroad

Foreign trusts

Purpose: Compliance with Black Money Act disclosures.

• Tax regime selection (Section 115BAC) introduced ITR-1, 2, 3, 4:

First year taxpayers had to choose:

Old regime (with deductions)

New lower-tax regime (without deductions)

• PAN/Aadhaar interchangeability

All forms

Allowed Aadhaar to be quoted instead of PAN for filing.

• PAN-Aadhaar linking ITR-1 to ITR-7 (all forms): Became mandatory to quote Aadhaar or Enrolment ID in ITR.

            Purpose: To strengthen identity verification and prevent duplicate PANs.

• Standard deduction ITR-1, ITR-2, ITR-3, ITR-4: ₹40,000 standard deduction for salaried taxpayers was introduced.

            Purpose: Simplified and standardised deduction for employees.

• Equity LTCG tax ITR-2, ITR-3: Long-term capital gains over ₹1 lakh taxed at 10%.

Taxpayers had to report:

ISIN

Sale/purchase dates

FMV on 31-Jan-2018

Cost and sale value.

Reason:

LTCG on equities was reintroduced in Budget 2018 after being tax-free for years.

• ITR-1 Sahaj simplified: Made a single-page form for income up to ₹50 lakh.
• E-filing mandatory: Except for super-seniors (>80 years) with low income and no refund claims.
• Property buyer details ITR-2, ITR-3: Sale of immovable property required:

PAN of buyer

Address

Share of ownership

Amount

• New schedule for exempt income ITR-1 to ITR-4: Separate disclosure for:

Agricultural income

Dividend below ₹10 lakh

Interest from tax-free bonds

LTCG exempt under grandfathering.

• ITR-1 salary details ITR-1 Sahaj: Full salary breakup (basic, allowances, perquisites) was added.
• House property details: Moved into ITR-1 from ITR-2.

Now taxpayers with one house property could declare rental income/loss in ITR-1.

Simplified filing for salaried + 1 house owners.

• Salary and house property sections added ITR-4 Sugam: Included salary and house property sections for presumptive taxpayers (for presumptive taxation under 44AD/44ADA/44AE)

Now included fields for:

Salary income

Income from one house property

• NRIs to use ITR-2: Non-residents cannot use ITR-1 anymore.

Reason: Ensure NRIs provide complete foreign asset/income details.

• Late filing fee (234F): Forms added fields to enter this new penalty. Forms included fields to calculate and pay ₹1,000/₹5,000/₹10,000 fee.

• GST details for businesses ITR-3, ITR-4 Businesses had to enter GST number and turnover.

Purpose: Reconcile ITR income with GST returns.

Combat tax evasion.

• Partner Aadhaar ITR-5, ITR-7: Firms and trusts had to report Aadhaar of partners or trustees.
• Presumptive income details: More detailed disclosures for those using presumptive taxation.

Partners

Members

Trustees

• More details for presumptive income ITR-4: Presumptive income taxpayers under 44AD/44ADA/44AE had to provide:

Gross receipts

Gross turnover

Total expenses

Net income

Method of receipt (cash/digital)

• Schedule AL (Assets and Liabilities) ITR-2, ITR-3, ITR-4, ITR-5, ITR-6: Required for individuals/HUFs with income > ₹50 lakh.

Must report:

Immovable property

Jewellery

Vehicles

Bank balances

Shares/bonds

• Verification options improved

All forms

Aadhaar OTP, Net banking EVC, DSC.

Easier online filing.

• Fewer forms ITR-2A, ITR-3, and ITR-4 were merged or reorganized: Number of ITR forms reduced from 9 to 7.

The previous ITR 2A, ITR 2 and ITR 3 forms have been rationalized to single ITR 2 Form. The previous ITR 4 Form has been re-numbered as ITR 3.ITR 4S (Sugam) is now ITR 4 (Sugam).

• ITR-1 Sahaj: Introduced as a simpler, one-page form for salary/pension + one house property + other sources (≤₹50 lakh).

ITR 1 Sahaj form which can be filled by tax payers who have income from salary/pension, one house property and income from other sources like interest income. However to fill this form the total income should be less than Rs 50 Lakhs. The form has done away with the long list of deductions and only included the most common deductions under section 80C, 80D, 80G and 80TTA. If the tax payer wants to claim tax benefit under other sections he can do so by mentioning relevant section in column titled “Any Other”. Some new columns have been introduced to report dividend income (u/s Section 10(34)) and exempted long term capital gains (u/s Section 10(38)).

• Aadhaar requirement ITR-1 to ITR-7: Mandatory to quote Aadhaar or enrolment ID.(This provision was deferred because of a pending Supreme Court case.)
• Demonetisation reporting ITR 1, 2, 3, 4, 5, 6, 7: A new field has been inserted in all ITR Forms to report the amount of cash deposited during the demonetization period of November 9 to December 30, 2016. However, it was mandatory to report this if the cash deposit during the period exceeded Rs 2 Lakhs.
• Section 80EE ITR-2, ITR-3, ITR-4: Field for additional home loan interest deduction. Section 80EE gives additional tax exemption of Rs 50,000 for payment of interest on housing loan to first time home buyers. This is over and above the tax exemption of Rs 2 lakhs u/s 24(b). A new field has been introduced in Schedule VI-A to claim this deduction. In case you are filling ITR 1 you can mention Section 80EE in “Any Other” deductions to avail this tax benefit.
• Assets disclosure ITR-2, ITR-3, ITR-4: Wealth tax in India was officially abolished with effect from 1 April 2016. Post the abolition of wealth tax, Individuals with income over ₹50 lakh were asked to give detailed assets/liabilities, which required reporting of:

• Land and buildings
• Cash in hand
• Jewellery, bullion
• Vehicles, yachts, boats, aircraft
• Liabilities related to these assets

Purpose:

• Replace the abolished Wealth Tax Act with limited asset reporting.

• Enhanced Schedule VI-A (deductions) ITR-1 to ITR-4 Required itemized entries for deductions under:

Section 80C (LIC, PPF, etc.)

Section 80D (health insurance)

Section 80G (donations)

Section 80TTA (savings interest)

Section 80GGA (rural development donations)

• Pre-validation of bank account for refund

All forms

Taxpayers had to pre-validate their bank account in the e-filing portal to receive income tax refunds directly.

• Reporting Pass-through Income from Business Trusts / Investment Funds ITR-2, 2A, 3, 4

New Schedule PTI introduced to report income received from:

Business trusts

Investment funds

Details to disclose:

Name & PAN of trust/fund

Nature/head of income

Amount received

Taxes withheld (if any)

Purpose:

Tax pass-through income in the same nature as in the hands of the trust.

• Claiming Tax Collected at Source (TCS) Credit ITR-1, 2, 2A

New Schedule-TCS added to claim TCS credit.

Taxpayers can now claim tax collected by sellers on:

High-value cash purchases (e.g. jewellery over ₹5 lakh)

Other specified transactions

Details required:

Collector’s TAN

Name of collector

Amount collected

Amount claimed

Purpose:

Avoid previous confusion on how to claim TCS in returns.

• Impact of ICDS (Income Computation and Disclosure Standards) ITR-4 only

New Schedule – ICDS added.

Businesses must disclose adjustments to profits due to ICDS adoption.

• ITR-4S (Sugam) Expanded to Partnership Firms ITR-4S (now ITR-4)

Previously only for individuals and HUFs.

Now Partnership firms (other than LLPs) can use it if:

• Presumptive income (Sec 44AD/44AE)
• Income up to specified limits
• No foreign assets/relief claims

• (Less documented online changes) – But this was a transition year with e-verification improvements and preparation for next year’s simpler forms.

• Electronic Verification Code (EVC): Introduced to verify ITR without sending physical ITR-V.

Verification possible through:

Aadhaar OTP

Net Banking

Bank account/Demat EVC

• New Form ITR-2A introduced For individuals and HUFs:

No business/profession income

No capital gains

No foreign assets/income

Meant for people with salary/pension + multiple house properties + other sources (excluding winnings).

Purpose:

Simplify filing for middle-class taxpayers with more than one house property.

• Bank Account Details — Simplified Requirement Taxpayers needed to declare all savings and current accounts held at any time during the year.

But dormant accounts (inactive >3 years) were exempt from disclosure.

Required details:

IFSC code

Account number

• Foreign Travel Details Replaced with Passport Number

Instead of giving all foreign travel details and expenditure:

Only Passport Number needed (if available).

Forms affected: ITR-2, ITR-2A.

Goal:

Simplify compliance and privacy.

• E-filing Mandatory in More Cases

Mandatory e-filing if:

Income > ₹5 lakh.

Or any foreign income/foreign assets.

Or seeking refund, even if income < ₹5 lakh.

Goal:

Move to paperless compliance.

• Changes in Tax Benefits Reflected in Forms

Basic exemption limit increased:

General taxpayers: ₹2.5 lakh

Senior citizens: ₹3 lakh

Very senior citizens (80+): ₹5 lakh.

80C limit raised to ₹1.5 lakh.

Interest on home loan (Section 24) limit raised to ₹2 lakh (for self-occupied).

Forms updated to capture these revised deductions.

• E-filing became compulsory for more people (ITR-1 to ITR-4): If your total income was over ₹5 lakh, you had to file your return online. Even if you earned less than ₹5 lakh but wanted a refund, you still had to e-file.
  Bottom line: No more paper forms for many taxpayers.

• Foreign Asset had to be reported clearly ITR-2, ITR-3, ITR-4: A new section in the forms asked residents to declare any foreign bank accounts, property, or investments.Purpose: To track black money and foreign income.

• Exempt Income details had to be shown
  Forms added a section to list all exempt incomes, like agricultural income, tax-free dividends, or exempt capital gains.
  Make your full income picture clearer to the tax department.

• High-income people had to declare assets and debts: If your total income was over ₹25 lakh, you needed to fill a new Assets and Liabilities
  You had to share details of houses, jewellery, vehicles, shares, bank balances, and any loans.

• Firms and companies had extra fields ITR-5, ITR-6. Forms for partnerships and companies asked for more details about partners/shareholders and their profit-sharing ratios.

• Fewer structural changes, focus was on service tax amendments (but not much in ITR forms themselves). Slight refinements in Schedule FA for foreign assets.

• Disclosures of Assets & Liabilities in ITR form ITR Form 3 & ITR 4.: This is another major change brought in by the IT Department. The objective of this seems to gather as much information as possible. Basically if you are an individual/HUF having income of more than Rs 25 Lakhs, you need to disclose details of assets and liabilities in newly introduced schedule AL in the ITR Form 3 & ITR 4.
• Foreign Asset Disclosure Made Mandatory ITR-2, ITR-3, ITR-4: Residents had to report foreign assets and income.
  Details included:

Foreign bank accounts

Properties abroad

Financial interests

Signing authority in any foreign account

• Salary Break-up Required in Detail ITR-1 and ITR-2: added detailed fields for salary:
  Must show:

Basic salary

Allowances

Perquisites

Deductions under section 16
Purpose: Match with Form 16 for better accuracy.

• Changes in Forms for Firms and Companies ITR-5 and ITR-6: Needed to declare:

Partner or shareholder info

Nature of business

Profit-sharing ratios.
Purpose: Improve clarity for firms and companies.

• Mainly tax slab changes and minor form refinements. No major structural changes in the forms were reported.

The CBDT amended the forms -ITR 2/3/4- wherein domestic and expatriate resident individuals have to make additional disclosures if foreign assets mentioned below which are held and located outside India:

1. Foreign bank accounts
2. Financial interest in any entity

• Immovable Property

1. Any other asset and
2. Details of account in which the assessee holds signing authority and which is not included in 1 to 4 above.

Improved Forms for Firms and Companies ITR-5, ITR-6

  Partner/shareholder details

  Profit-sharing ratios

  Nature of business.

Other Amendment in form ITR 2
1. A schedule got inserted to provide details of tax relief claimed under sections 90/90A/91 under the Income-tax Act, 1961 (the Act) in relation to taxes paid in foreign country on income which is doubly taxed. The old form did not have such schedule for providing more details but only had a claim amount to be included in the income computation.

2. On similar lines, a schedule got inserted to provide details of deduction claimed under section 8oG in relation to donation made. However, the old form did not have such schedule for providing more details but only had a claim amount to be included in the income computation.

ITR -3:- This Return Form got notified to be used by an individual or an Hindu Undivided Family who is a partner in a firm and where income chargeable to income-tax under the head “Profits or gains of business or profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm. In case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm, he shall use this form only and not Form ITR-2.

ITR 4- This Return Form got notified to be used by an individual or an Hindu Undivided Family who is carrying out a proprietary business or profession and who are not filing Return under Presumptive Taxation Scheme. For Presumptive Business Income Assessee need to file Return in SUGAM (ITR-4S).

• The Income Tax Department introduced new ITR-1 (Sahaj) and ITR-4S (Sugam) forms. ITR-1 (Sahaj):

• For salaried individuals or pensioners.
• Income from one house property.
• Income from other sources (except lottery/racing).
• Income limit: up to ₹10 lakh.
  ITR-4S (Sugam):
• For small businesses and professionals using presumptive taxation (Section 44AD / 44AE).

No need for full profit and loss details.
Purpose: Make filing easy for people with simple incomes.

As you can see, over the last decade and a half the ITR forms in India have become more digital, more detailed, and more aligned with transparency goals. From Aadhaar linking to disclosures of foreign assets, from GST integration to new tax regimes — the forms have evolved to match India’s changing tax landscape. If you’re a taxpayer, it helps to know why these questions appear every year — they’re not just paperwork, they’re the government’s way of making tax compliance more accurate and fair. Because of these major reforms and compliance enforcement, India’s Direct Tax collection has gone up from 3,72,000 crores in F.Y. 2008-2009 to almost 24,00,000 crores in F.Y. 2023-2024 and number of filed returns has gone up from approx 3 crores in F.Y. 2008-2009 to almost 9 crores Income tax returns filed for F.Y. 2023-24.