Key Points

The income tax department highlighted various changes, one of the most notable revisions in ITR Form 5 is the introduction of a split within the Schedule-Capital Gain. This new structure mandates taxpayers to report capital gains before and after July 23rd, 2024.

The form now allows the reporting of capital loss incurred on share buybacks. However, this allowance is conditional upon the corresponding dividend income from these buybacks being declared as "income from other sources," particularly for transactions occurring after October 1st, 2024.

Furthermore, ITR Form 5 has a new addition of a specific reference to the section 44BBC of the Income Tax Act.

Another key update is the requirement to specify the Tax Deducted at Source (TDS) section code within Schedule-TDS.

Recently, the Income Tax Department has introduced the 'e-Pay Tax' feature on its official online portal to facilitate the taxpayers by easing various processes, according to the CBDT.

Additionally, in the July 2024 Budget, the government proposed a comprehensive review of the Income-tax Act of 1961. The purpose was to make the Act concise and lucid, thereby reducing disputes and litigation.

Meanwhile, on March 25, Union Finance and Corporate Affairs Minister Nirmala Sitharaman said that the new Income Tax Bill will be taken up for discussion in the monsoon session of Parliament.

Earlier on March 18, the government encouraged the stakeholders to submit their suggestions on the newly introduced Income Tax Bill 2025. The Bill is currently under examination by the Select Committee for detailed consideration.

- ANI