ITR-6 Excel Utility for AY 2025-26 Released: Key Changes in ITR Forms, LTCG Relief, Asset Threshold Raised

The Income Tax Department has introduced the Excel utility for Income Tax Return (ITR) Form 6 for the assessment year 2025-26. This tool allows eligible companies to file their returns for the financial year 2024-25. "Kind Attention Taxpayers! Excel Utility of ITR-6 for AY 2025-26 is now live and available for filing," announced the tax department on X.

ITR-6 is designated for companies not claiming exemptions under Section 11 of the Income Tax Act, which pertains to income from property held for charitable or religious purposes. Corporate taxpayers can now use this updated utility on the e-filing portal to prepare and submit their returns.

Key Changes in ITR Forms

Earlier, all seven income tax return forms for Assessment Year 2025-26 were notified by the department. On April 29, ITR-1 and ITR-4, meant for small and medium taxpayers, were released. ITR-7, used by trusts and charitable institutions, was made available on May 11.

A significant update in ITR-1 and ITR-4 allows salaried individuals and those under presumptive taxation with long-term capital gains (LTCG) up to Rs 1.25 lakh to file these forms instead of ITR-2. Previously, such taxpayers needed to file ITR-2.

Changes in capital gains tax are also reflected in the notified forms. In Schedule Capital Gains, gains must be divided based on whether they occurred before or after July 23, 2024. The Budget presented on July 24 proposed reducing long-term capital gains tax on real estate from 20% with indexation benefit to 12.5% without it.

ITR Form Eligible Taxpayers Key Changes in FY 2025-26

• ITR-1 (Sahaj): For resident individuals with income ≤ Rs 50 lakh; LTCG up to Rs 1.25 lakh allowed without switching to ITR-2.
• ITR-2: For individuals/HUFs with capital gains but no business income; now enabled with pre-filled online filing.
• ITR-3: For individuals/HUFs with business or profession income; asset-liability threshold raised to Rs 1 crore.
• ITR-4 (Sugam): For individuals/HUFs/firms (non-LLP) with presumptive income ≤ Rs 50 lakh; LTCG up to Rs 1.25 lakh allowed.
• ITR-5: For firms, LLPs, and cooperative societies; no major changes reported.
• ITR-6: For companies under the Companies Act; Excel utility released on August 15.
• ITR-7: For trusts and charitable institutions; form notified on May 11.

The asset and liability reporting threshold under 'Schedule AL' in ITR-3 has been increased from Rs 50 lakh to Rs 1 crore. This change reduces disclosure requirements for middle-income taxpayers who file this form due to business or professional income.

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