Changes in ITR Form 6 for 2025: Key updates taxpayers should know

Document revises the way taxes were reported for buyback proceeds, unlisted bonds and cruise shipping companies

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The Central Board of Direct Taxes (CBDT) has notified revised Income Tax Return (ITR) forms for assessment year (AY) 2025-26. ITR Form 6, used by companies not claiming exemption under Section 11, has several changes that reflect amendments to the Income Tax Act, particularly those introduced through the Finance (No. 2) Act, 2024. Naveen Wadhwa, vice-president at Taxmann, explains changes in ITR Form 6.

 

Key changes in ITR form 6

 

• Reporting under section 44BBC for cruise shipping companies 
• A new presumptive taxation scheme under Section 44BBC has been introduced for non-resident operators of cruise ships. ITR Form 6 now includes fields in Schedule BP and Part A-Gen to report income computed under this new scheme. 
• 20 per cent of gross receipts from cruise services will be considered as deemed profit. 
• Tax audit may not be required, following the same approach as Section 44B.

 

Capital gains: Date of transfer now crucial

 

Following changes effective from July 23, 2024:

 

• Short-term capital gains under Section 111A will be taxed at 20 per cent, instead of 15 per cent. 
• Long-term capital gains under Sections 112 and 112A will attract a flat 12.5 per cent tax without indexation. 
• The form requires separate disclosures based on whether the asset was transferred before or after July 23, 2024.

 

Buyback proceeds as deemed dividend

 

• Effective October 1, 2024, buyback proceeds from domestic companies are taxable in the hands of shareholders under Section 2 (22) (f). 
• ITR Form 6 reflects this by shifting such income to the ‘other sources’ schedule. 
• Capital gains arising from buybacks are to be reported as nil, resulting in a notional capital loss. 
• Unlisted bonds under section 50AA 
• The form captures gains from unlisted bonds and debentures transferred after July 23, 2024, as short-term capital gains, as per the widened scope of Section 50AA.

 

Simplified yet detailed

 

“These revisions ensure alignment with updated tax provisions while making the form more comprehensive for corporate filers,” said Wadhwa. With enhanced disclosures and category-specific fields, companies will need to prepare well for taxes to avoid compliance hurdles.