A Simple Guide to Smart Tax Filing

Filing income tax returns might seem complicated, but it doesn’t have to be—especially with experts like JD Shah Associates by your side. The Income Tax Department of India has rolled out new ITR forms for the Assessment Year (AY) 2025–26, and there are some important updates you should know.

Whether you’re a salaried employee, business owner, or investor, understanding these changes can help you stay compliant, avoid penalties, and make the most of your auditing and taxation strategy.

What is an ITR?

Let’s start with the basics.

ITR (Income Tax Return) is a form where you report your income, expenses, savings, and taxes paid. Think of it as your annual financial report card that goes to the government.

Every year, the ITR forms are updated to reflect changes in tax laws. This year, there are a few big changes you should be aware of.

What’s Changed in ITR for AY 2025–26?

1. Simplified Filing for Small Taxpayers

If you earn from salary or run a small business, and your long-term capital gains are up to ₹1.25 lakh, you can now file using the simpler Sahaj ITR-1 or ITR-4 forms.

Less paperwork, fewer complications.
No need to use ITR-2 anymore for small LTCG.

By Our Valuable Client – “I run a boutique shop, and this new rule really helped me file my taxes with ease this year. Thanks to JD Shah Associates for guiding me step-by-step.”

2. Aadhaar Enrolment ID Removed

Earlier, you could file ITR with just an Aadhaar enrolment slip. Now, only the full 12-digit Aadhaar number is allowed.
This helps reduce errors and avoids PAN duplication.

3. Clear Info on Concessional Tax Regime

You now need to mention whether you’re continuing with the new tax regime or switching out.
It also asks if you’ve submitted Form 10-IEA earlier.
This improves transparency and helps with long-term financial planning.

4. Capital Gains Tax—New Rates & Rules

Big changes here! The tax rates for selling shares, mutual funds, and property have been updated:

Type of GainOld RateNew RateShort-term (Section 111A)15%20%Long-term (Section 112A)10%12.5%Other LTCG (Section 112)20%12.5% (no indexation)*

*Indexation benefit only for some real estate sales before July 23, 2024.

Planning to sell property or shares? Speak to our tax audit team at JD Shah Associates for a better capital gains strategy.

5. Buy-Back of Shares: Now Taxed Differently

If a company buys back your shares (after Oct 1, 2024), the money you get will now be taxed as dividend income.
You also need to show the cost of shares in the capital gains schedule.
This closes a loophole and ensures fair taxation.

6. Assets & Liabilities – New Threshold

You now only need to declare your assets and liabilities if your income is above ₹1 crore (earlier ₹50 lakh).
This reduces filing pressure for salaried individuals.

By Our Valuable Client – “Earlier, I was stressed about asset disclosure. This new ₹1 crore limit really makes it easier to file without confusion.”

7. More TDS Details Needed

You’ll now be asked to mention the exact TDS section (like 194C, 194J, etc.) when reporting Tax Deducted at Source.
This makes it easier to match your Form 26AS and avoid mismatch issues.

8. Specific Details for Deductions

While filing for deductions like:

Life insurance (Section 80C)
Home loan interest (Section 24b)
You’ll now need to provide specific policy numbers or loan details.

This improves accuracy and reduces fraud.

Looking to claim more deductions smartly? Explore our Income Tax Declaration services today.

Why These Changes Matter

These changes make ITR filing:

Easier for honest taxpayers
More transparent
Better aligned with real-time income and investment data

But yes, it also means you need to be extra accurate this year.

That’s where JD Shah Associates comes in.

Income Tax Return Filling Form

Why Trust JD Shah Associates?

We’ve helped thousands of individuals and businesses with:

Tax audits
Income tax declaration
Auditing and taxation compliance
GST filings and financial planning

By our Valuable Client – “We used to struggle with understanding what’s deductible and what’s not. With JD Shah Associates, we now file early, and feel confident during audits.”

Final Thoughts

The new ITR forms are a step toward smarter and simpler tax filing—but only if you understand them well. If you feel stuck or unsure, don’t guess. Let experts like JD Shah Associates handle your tax journey with care.

Book a consultation with our tax experts today and file your returns with complete confidence!

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