CBDT Notification: New ITR Forms (ITR-1 to ITR-6) for AY 2025-26 Notified with Stricter Disclosures

The Central Board of Direct Taxes (CBDT) has notified the Income-tax Return Forms (ITR-1 SAHAJ, ITR-2, ITR-3, ITR-4 SUGAM, ITR-5, and ITR-6) for Assessment Year 2025-26 well ahead of schedule to give taxpayers and tax practitioners sufficient time to prepare.

The revised forms reflect critical statutory amendments introduced by recent Finance Acts, focusing heavily on automated cross-matching between GSTR-2B, AIS, bank reporting, and income-tax declarations.

A crucial addition in ITR-3, ITR-5, and ITR-6 is the dedicated reporting field under 'Other Information' for sums disallowable under Section 43B(h) of the Income-tax Act, 1961.

Any amount payable to Micro or Small enterprises beyond the time limit specified in Section 15 of the MSMED Act, 2006 (15 days or up to 45 days if governed by written agreement) will be disallowed in the year of accrual and added back to taxable profits.

Assessees holding foreign shares (including employee stock options from multinational parents), foreign depository accounts, or digital overseas wallets must exercise extreme vigilance.

Failure to furnish Schedule FA or inaccurate disclosure attracts hefty penalties of ₹10,00,000 under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, irrespective of whether the foreign asset generated taxable income.

Taxpayers must not rely solely on Form 16 or basic salary slips. A thorough reconciliation between AIS, TIS, GST sales, and bank statements is mandatory prior to uploading returns to prevent automated algorithmic notices under Section 143(1)(a).