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May 03, 2025
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New ITR-5 form is here: Capital gains, buyback loss and TDS rule changes explained
If you're a partnership firm, LLP, or Association of Persons filing taxes this year, there’s a new Income Tax Return form you need to get familiar with. The Central Board of Direct Taxes (CBDT) has notified the new ITR-5 form for Assessment Year 2025–26 via Notification No. 42/2025, effective from April 1, 2025—and it comes packed with changes that could impact your reporting, deductions, and refund timelines.
1. Capital Gains Now Split by Key Date
One of the biggest updates lies in Schedule CG, where capital gains are now reported in two segments:
Before July 23, 2024: For transactions before key Finance Act changes took effect.
On or After July 23, 2024: For post-amendment gains or losses.
This bifurcation helps align gains with applicable tax treatments and gives tax officers clearer audit trails.
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