notification no. 40/2025 f.no. 370142/3/2025 tpl / gsr 271 e income tax twelfth amendment rules 2025

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 29th April, 2025
No. 40/2025

G.S.R. 271(E).- 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. Short title and commencement. -

• (1) These rules may be called the Income-tax (twelfth Amendment) Rules, 2025.
• (2) They shall come into force with effect from the 1st day of April, 2025.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 12, -

• (a) in sub-rule (1), -
  • (i) for the figures "2024", the figures "2025" shall be substituted;
  • (ii) in clause (a), in sub-clause (iii), for the words "does not have any loss under the head, "the words "does not have any loss under the head; or" shall be substituted.
  • (iii) in clause (a), after sub-clause (iii), the following sub-clause shall be inserted, namely, -
    • "(iv) "Capital gains", where assessee has only long-term capital gains under section 112A not exceeding one lakh twenty-five thousand rupees and does not have any brought forward loss or loss to be carried forward under the head,"
  • (iv) in clause (ca), for the words, figures and letters "in the case of a person being an individual or a Hindu undivided family, who is a resident other than not ordinarily resident, or a firm, other than limited liability partnership firm, which is a resident deriving income under the head "Profits or gains of business or profession" and such income is computed in accordance with special provisions referred to in section 44AD, section 44ADA and section 44AE of the Act for computation of such income, be in Form SUGAM (ITR-4) and be verified in the manner indicated therein:", the words, figures and letters "in the case of a person being an individual or a Hindu undivided family, who is a resident other than not ordinarily resident, or a firm, other than limited liability partnership firm, which is a resident,-
    • (i) deriving income under the head "Profits or gains of business or profession" and such income is computed in accordance with special provisions referred to in section 44AD, section 44ADA and section 44AE of the Act for computation of such income; and;
    • (ii) has, "Capital gains", if any, where assessee has only long-term capital gains under section 112A not exceeding one lakh twenty-five thousand rupees, be in Form SUGAM (ITR-4) and be verified in the manner indicated therein" shall be substituted;
• (b) in sub-rule ( 5), for the figures "2023 ", the figures "2024" shall be substituted.

3. In the principal rules, in rule llB, after the words, figures and letters "Form No. lOBA", the words "and furnish the same along with the return of income" shall be inserted.

4. In the principal rules, in Appendix II,-

• (a) for FORM ITR-1, the following FORM shall be substituted, namely: -

ITR-1 SAHAJ | INDIAN INCOME TAX RETURN [For individuals being a resident ( other than not ordinarily resident) having total income npto Rs.SO lakh and having Income from Salaries, one house property, other sources (Interest etc.), long-term capital gains nuder section 112A up to Rs. 1.25 lakh, and agricultural income np to Rs.5 thousand] [Not for an individual who is either Director in a company or bas invested in unlisted equity shares or in cases where TDS bas been deducted u/s 194N or if income-tax is deferred on ESOP or bas assets (including financial interest in any entity) located outside India] (Re.fer instructions _for elixibility) | Assessment Year 2 0 2 5 - 2 6