ITR 2025-26: 5 Big Changes You Must Know
The Income Tax Department has updated ITR forms for FY 2025-26. New rules now require you to separately report long-term capital gains, losses from company buybacks, F&O trading income, and intra-day stock trading. Whether you invest in mutual funds, trade stocks, or run a small business, these changes affect how you file your return this year.
Over 7 crore Indians filed income tax returns last year — yet most people spend less time on their ITR than choosing a new mobile phone. With these new form changes, spending even 2 extra hours understanding the updates could save you from a tax notice worth thousands.
If you invest in stocks, mutual funds, or trade in F&O, the revised ITR forms directly change what you must disclose — getting it wrong can mean tax notices or penalties on your return.
Key Takeaways
If you earned any long-term capital gains (LTCG) from stocks or mutual funds in FY 2025-26, check which ITR form applies to you — LTCG reporting is now more detailed and must be disclosed separately by asset type.
F&O traders and intra-day stock traders must report this income clearly in ITR 3 — treating it as 'other income' or ignoring it can trigger a scrutiny notice from the tax department.
If you received income from a company buyback during the year, note that losses from such transactions now need specific disclosure — consult a CA or use a reliable tax filing tool before submitting.
Every year, the Income Tax Department revises its ITR forms — and FY 2025-26 brings some of the most significant updates in recent years. The changes affect ordinary salaried investors, small traders, and business owners alike. Here is what you need to understand before you file.
The biggest change is around capital gains reporting. If you sold mutual fund units or listed shares during the year, you now need to report long-term capital gains (LTCG) in greater detail — broken down by asset class and holding period. Remember, LTCG above ₹1.25 lakh from equity and equity mutual funds is taxable at 12.5% (revised in Budget 2024). Accurate reporting is not optional — mismatches with your broker's Form 26AS or Annual Information Statement (AIS) can lead to automated notices.
For investors who participated in company share buybacks, there is an important new requirement. Following the Budget 2024 rule change that made buyback proceeds taxable in the hands of shareholders (not companies), losses from such transactions now require separate disclosure. This is new territory for many retail investors who assumed buybacks were simple exits.
F&O and intra-day equity traders need to pay extra attention. These incomes are treated as business income — not capital gains — and must be reported in ITR 3 with proper turnover calculations. Intra-day trading has its own turnover definition under tax rules. If you traded even occasionally on apps during the year, do not ignore this.
Using a platform like GoCredit can help you stay on top of your overall financial picture — from tracking loans to planning tax-saving investments before March 31. When filing, always cross-check your AIS on the income tax portal before submitting. Pro tip: download your AIS and Form 26AS in April itself and reconcile every entry with your actual transactions — this one step prevents 90% of all tax notices.
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