The Delhi High Court will soon to decide whether the tax department can retrospectively reopen old tax notices involving foreign assets—even if those notices were time-barred under earlier rules.

A division bench led by Justices Vibhu Bakhru and Tejas Karia was hearing a batch of petitions on 30 May – filed by companies such as UK Paints (Overseas) Ltd, BJN Holdings (India) Ltd, and KS Dhingra – challenging these reassessment notices under Section 148 of the Income Tax Act. It referred the matter to a larger bench for a final decision. The notices were issued between 2014 and 2021, covering assessment years that stretch back decades.

2012 amendment extended reassessment period
At the centre of the case is a 2012 amendment to the Income Tax Act that extended the reassessment period from six years to 16 years for cases involving foreign assets. After the amendment, which was aimed at tackling black money and undisclosed foreign assets, the department started issuing reassessment notices for older cases, some dating back to 1997.

The Central Board of Direct Taxes (CBDT) will undertake a detailed review of charitable entities and non-profit organisations to see if they are not being misused for terror financing or money laundering.

The review will be done in collaboration with agencies such as the Intelligence Bureau (IB), the Enforcement Directorate (ED) and the National Investigation Agency (NIA).

The CBDT will prepare a database of charitable institutions with foreign links, those receiving heavy foreign funds, or institutions that are registered but not filing returns or don't have much of a digital footprint, people aware of the details told ET.

The move comes after the department received information about the questionable role of some charitable institutions. Some of them received large amounts from across the border.

The board has asked officials to send notices by the end of June in cases that have been selected based on risk assessment or where it has received information from the IB, ED or NIA of links with any money laundering or terror financing cases, they said.

ITR Filing FY 2024-25: The Income Tax Department has activated its website incometax.gov.in for filing income tax returns using ITR-1 and ITR-4 forms. Eligible individuals can now submit their ITR via the e-filing portal for FY 2024-25 (AY 2025-26). Currently, only ITR-1 and ITR-4 submissions are available online, whilst those needing to submit ITR-2 or ITR-3 must wait for further updates.

Last month, the Income Tax Department had extended the deadline to file ITR for FY 2024-25 to September 15 from July 31.
Who can e-file ITR using ITR-1 for FY 2024-25?
The ITR-1 filing is allowed for Indian resident individuals who:
* Have a total annual income below Rs 50 lakh
* Earn from salary, one house property, family pension income, agricultural income (up to Rs 5000), and additional sources including:
* Savings Account interest
* Deposit interest (Bank / Post Office / Cooperative Society)
* Income Tax Refund interest
* Enhanced Compensation interest
* Other interest earnings
* Family Pension

The Income Tax Department has launched Excel-based offline utilities for ITR-1 and ITR-4 for the Assessment Year 2025-26, following a delay of nearly two months. These tools are designed to assist individual taxpayers with annual incomes under Rs 50 lakh, allowing them to prepare their income tax returns offline by entering income details, validating the data, and generating a JSON file for submission.

However, as noted by CA (Dr.) Suresh Surana, the e-filing portal required for online submission of these returns, is still not operational, hindering taxpayers who prefer or need an online interface for filing their returns. This delay has caused significant inconvenience to many taxpayers who rely on the online system for its ease of use and accessibility.

The Income-Tax (I-T) Department has on May 30 made available for taxpayers the facility of Excel Utility for ITR-1 and ITR-4 for AY2025-26.

In a post on social media platform X, the I-T Dept said, “Attention taxpayers! The Excel Utility for ITR-1 and ITR-4 for AY 2025-26 has been enabled and is now available for taxpayers.”

As on date, the I-T Dept notified income tax return (ITR) forms 1, 2, 3, 4 and 5. These forms are meant to be used for filing income tax returns (ITR) for FY 2024-25 / AY 2025-26.

On April 29, the department notified ITR-1 (sahaj) and ITR-4 (sugam). This was followed by notifying the ITR form 3 on April 30. Later, ITR forms 5 and 2 were notified on May 1 and May 3, respectively.

ITR-1: This form is meant for resident individuals with a total income of up to Rs 50 lakh.
ITR-2: ITR-2 can be filed by individuals or Hindu Undivided Families (HUFs) who are not eligible to file ITR-1 (Sahaj).
ITR-3: The ITR-3 form is meant for individuals and HUFs engaged in business or profession requiring the maintenance of elaborate books of accounts.

The New Income Tax Bill, 2025 has a provision with which non-residents Indians (excluding FIIs) can effectively pay a lower capital gains tax than allowed under the Income Tax Act, 1961. This provision is called ‘forex fluctuation benefit’ and using it NRIs can pay a lower long term capital gains tax (LTCG) on sale of unlisted equity shares of an Indian company.

As per calculations, if this beneficial provision in the new tax bill, 2025 is incorporated by the Indian government in the final act, then NRIs can pay as much as 72% lower long term capital gains tax when compared to before. The reason for this high percentage of savings in capital gains tax payment for NRIs is earlier under the old tax act of 1961, NRIs had to pay income tax on artificially high income due to depreciation of Indian Rupee (INR). This disadvantage is now removed and NRIs are only required to pay income tax on their actual gains in USD terms.

Read below to understand what the forex fluctuation benefit about which Income Tax Bill 2025 talks is about and how NRIs stand to gain from this benefit if the government implements it in the final income tax act.

The Income Tax Department has extended the due date for Income Tax Return (ITR) filing from July 31, 2025, to September 15, 2025. However, there is an unintended consequence of ITR filing deadline extension by income tax department for FY 2024-25 (AY 2025-26). This deadline extension may result in higher interest payout for many people claiming income tax refund this year including both Indian and NRI taxpayers.

Taxpayers can claim an income tax refund in their ITR, when their income tax liability is lower than the tax amount already deposited by them through TDS deduction, advance tax, etc. Under Section 244A, the income tax department has to pay simple interest of 0.5% interest on the whole or the excess amount of tax refund so refunded, for every month or part of a month. However, one has to remember that this interest on tax refund is taxable as income from other sources in the relevant year of earning.

Many taxpayers won’t mind this increased income as this income may still remain tax-free for them.

The Income Tax Department has extended the deadline to file Income Tax Returns (ITRs) for the assessment year 2025–26 from July 31 to September 15, 2025.

This extension in the deadline to file tax returns will provide more time to taxpayers for collecting documents and aligning with changes in guidelines and compliance norms.

“There have been many significant revisions in ITR forms, system development needs, and TDS credit reflections. This ensures a smoother and more accurate filing experience for everyone. Formal notification will follow,” the Central Board of Direct Taxes (CBDT) said in a social media post on ‘X’.

The notified ITRs for AY 2025-26 have undergone structural and content revisions aimed at simplifying compliance, enhancing transparency, and enabling accurate reporting, the tax department said in a release.

In a relief for crores of income tax assessees, the Central Board of Direct Taxes (CBDT) has extended the ITR (Income Tax Return) filing due date by 45 more days, until September 15, 2025. The earlier deadline for filing returns in non-audit cases is not required was July 31, 2025.

This has come as a big relief, especially for salaried taxpayers who usually start filing their returns after June 15, after receiving Form 16 from their employers. These taxpayers typically have less than 45 days to comply with their tax return filing obligations, as most companies begin releasing Form 16 for their employees in the third and fourth weeks of June.

It should be noted here that the deadline for filing income tax returns in cases where accounts need to be audited has not been changed. These taxpayers have to file their ITRs by October 31, 2025.

Let’s talk about something most Indian families experience: gifts during weddings. You’ve probably attended a wedding where the parents of the bride or groom receive ‘shagun’ or money from friends and relatives. Sometimes it’s a token, other times, it’s quite a lot.

Now here’s the big question: Is that money tax-free?

Well, according to a ruling by the Punjab & Haryana High Court in 2013, not always. In fact, if you’re the parent and the money was given to you during your child’s marriage, you could end up paying income tax on it.

Meet Rajinder Mohan Lal, a Chandigarh resident who received over Rs 21 lakh as gifts from friends and family during his daughter’s wedding.

Sounds normal, right? He even provided proof that this was just shagun from well-wishers.

But when he filed his income tax return in 2007-08, he didn’t include that Rs 21 lakh. The Income Tax Department wasn’t happy — and added the amount to his taxable income.

The income tax department recently notified the income tax return (ITR) forms to be used for filing tax returns for FY 2024-25 (AY 2025-26). However, unlike previous years, when the ITR forms were notified well in advance, this year they were notified by the end of April 2025. Further, the income tax department has yet to release the utilities, i.e. the online software/forms necessary for filing ITRs. Tax experts advise postponing the filing of ITRs until June 15, 2025, even though the ITR forms are available now.

ET Wealth online explains why it is advisable to defer filing your ITR till after June 15 and the problems you can face if you file it before.

TDS Certificates such as Form 16, Form 16A are issued latest by June 15
As per income tax rules, taxpayers should get their TDS certificates, such as Form 16 or Form 16A, latest by June 15.

Chartered Accountant Prakash Hegde says, "When the taxpayer has earned any income in the last quarter of FY 2024-25 (January 1-March 31, 2025) that is subject to TDS, the payer of that income has time until May 31, 2025, to file the eTDS return with the income tax authorities. The eTDS return captures the details of the income paid to the taxpayer and tax deducted on it."

The Central Board of Direct Taxes (CBDT) has notified a new ITR-U (updated income tax return) form to facilitate taxpayers in rectifying errors and omissions in previously filed ITRs. Before this, the Income Tax Department notified as many as 7 ITR forms for the Assessment Year 2025-26.

In Budget 2025, the government amended the filing rules for ITR-U. The new filing rules have been effective from April 1, 2025. The concept of ITR-U form was, however, brought in the Budget 2022.

What is ITR-U form?
ITR-U form has been introduced under Section 139(8A) to correct errors or omissions in their previously filed ITR. This ITR form can also be used in case of a missed income tax return where the assessee fails to file it within the due date and the belated/revised return deadline.

The new income tax bill, 2025 has introduced a one-time relief for those who want to reduce their capital gains tax outgo by reducing their short-term capital gains (STCG). In technical terms, the new income tax bill, 2025 allows any brought forward long-term capital loss (LTCL) incurred up to March 31, 2026, to be set-off against any short-term capital gains (STCG). If you notice closely, the word is ‘any’, so it means any LTCL if incurred under the Income Tax Act, 1961 can be set-off with STCG. But since this is the New Income Tax Bill, 2025 so it is likely to be applicable from April 1, 2026 onwards i.e. tax year 2026–27 onwards

This is a big positive development especially when you consider the fact that the existing Income Tax Act, 1961 allowed long term capital loss to be set-off only against long term capital gains (LTCG). So, by opening up the feature to set-off LTCL with both LTCG and STCG, the total capital gains tax outgo of an individual may get significantly lower. This may help many taxpayers, including ones who have been carrying forward the losses and are eligible to do so for the next two years.

Is owning multiple floors in the same residential building equivalent to owning more than one residential property? And if that is the case, will the concerned individual not be eligible to claim a long-term capital gains (LTCG) exemption from the sale of his/her capital assets under Section 54 of the Income Tax Act?

In a recent verdict, the Delhi High Court noted that ownership of multiple floors in the same building does not amount to owning more than one residential property, a prerequisite for claiming long-term capital gains exemption under Section 54F.

“We find it difficult to accept that, in the given facts, different floors of a house are required to be considered as multiple residential houses,” ruled the high court.

Read on to know the tax-related implications of this judgment and how this will impact homeowners across the country.

The Income Tax Appellate Tribunal (ITAT) Mumbai recently exempted an NRI step-brother from paying any income tax after the tax department added Rs 7.88 crore income in his Income Tax Return (ITR) on which they asked him to pay the appropriate income tax. In this case, the step-brother received a property completely free of cost in Mumbai from his step-sister as a gift in 2016. This Mumbai property originally belonged to their father and he gifted to her in 2003. Moreover, the property’s stamp duty of Rs 38.3 lakh was also paid by the stepsister herself when she gifted it to him. In 2021 he tried to sell this property and this is when the issue caught the income tax department's attention.

The Central Board of Direct Taxes (CBDT) has released the updated Income Tax Return Form 7 (ITR-7) for the assessment year 2025-26 (financial year 2024-25). The new form, notified in line with amendments introduced in the Finance Act, 2024, applies to entities such as charitable or religious trusts, political parties, research institutions, and universities, among others.

Who Should File ITR-7?
Entities required to furnish returns under sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act must use ITR-7. These include:

Charitable and religious trusts claiming exemptions under Section 11
Political parties under Section 139(4B)
Scientific research bodies, news agencies, colleges, universities, and other notified institutions
Entities claiming exemptions under sections like 10(23C) and 10(21)
These organizations typically operate on a not-for-profit basis and avail of exemptions under specific provisions of the law.

Political parties, charitable trusts, universities and research bodies now require to disclose more information on income from foreign contributions, voluntary donations, accumulated income, and application of funds. The Central Board of Direct Taxes (CBDT) notified a revised Income-tax Return Form ITR-7, Monday, effective April 1, 2025, for assessment year 2025-26. The ITR 7 is filled by political parties, charitable trusts and educational, research institutions.

The updated form also introduced compliance checks for specified violations that could lead to denial of exemption.

The changes aim to improve transparency, given the abuse of tax exemption in the past by some political parties and charitable institutions.

The Income Tax Department has notified the income tax return forms for FY 2024-25 (AY 2025-26), incorporating the changes in tax laws announced in the July 2024 budget. However, taxpayers will have to wait for the release of the ITR filing e-utilities on the income tax portal to file their ITR.

ET Wealth Online explains the nine changes made in this year's ITR forms that will make your ITR filing process easier for FY 2024-25 (AY 2025-26).

Changes in ITR forms for FY 2024-25 (AY 2025-26)
1. Expansion of eligibility to file ITR 1 and ITR 4: This year, the Income Tax Department has expanded the eligibility by relaxing the eligibility criteria, making more taxpayers eligible to file their tax return using ITR 1 and ITR 4. The new rules allow even taxpayers with long-term capital gains from equity and equity mutual funds to file a tax return using ITR1 and ITR 4 (as applicable), provided the capital gains do not exceed Rs 1.25 lakh.

The Income Tax Department has recently updated the capital gains taxation table and this is important information since the rate of capital gains tax both long term (LTCG) and short term (STCG) is different for different asset classes. Do note this tax rate is applicable for individuals under both new and old tax regime, as these are all special rate incomes.

“Determination of Tax in certain special cases: Since all the incomes are not taxable at the same rate. The document provides a list of Capital Gains/Incomes arising out of certain securities eligible for special tax rates. It contains details with respect to the eligible assessee, security, or tax rates etc.,” said the Income Tax Department.

Capital gains (LTCG & STCG) income tax rate on equities, others
Here’s the table released by the Income Tax Department:

Mihir Tanna, associate director, S.K Patodia LLP says: “Indian Income Tax provisions specified a certain type of income which is not taxable at slab rate but taxable at special rate like sale of equity shares/units of equity mutual funds through recognised stock exchange.

A fresh ITR 5 form has been notified by the Central Board of Direct Taxes (CBDT), effective April 1, replacing the earlier version used for firms, LLPs, Association of persons (AOPs), Body of Individuals (BOIs), and similar entities.

“In exercise of the powers conferred by section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:- 1. (1) These rules may be called the Income-tax (Fourteenth Amendment) Rules, 2025. (2) They shall come into force with effect from the 1st day of April, 2025. 2.