New Delhi, May 3 -- The Central Board of Direct Taxes (CBDT) has issued Notification No. 42/2025, dated May 1st, 2025, unveiling the new Income Tax Return (ITR) Form 5 for the Assessment Year 2025-26, the Income Tax Department said on its official X (formerly known as twitter) page.

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 "inc...