Taxpayers filing returns through ITR-5, ITR-6 and ITR-7 are still waiting for the Income Tax Department to release the online filing utilities. With just about two months left for the extended due date for non-audit cases, the delay must have caused concern among firms, companies and trusts that use these forms.
Why are the utilities delayed?
According to tax experts, the main reason is the significant changes introduced for assessment year 2025-26. Sandeep Sehgal, Partner-Tax at AKM Global, explains that the recent amendments have changed tax rates and reporting requirements.
“The department has opted for a phased rollout to ensure technical stability and proper integration with backend systems like AIS and Form 26AS,” he says.
Kinjal Bhuta, CA and Advocate, and Treasurer of the BCAS, adds, “These delays are mostly due to inherent technical issues with the utility and mismatches in pre-filled returns. That was also the reason why ITR-2 and ITR-3 were delayed recently.”
What are ITR-5, ITR-6 and ITR-7 for?
Under the Income Tax Act, 1961:
ITR-5 is filed by firms, LLPs and certain bodies like co-operative societies.
ITR-6 is used by companies that do not claim exemption under Section 11 (income from property held for charitable or religious purposes).
ITR-7 is meant for trusts, political parties and other institutions claiming exemption under Sections 139(4A) to 139(4D).
This year, all three forms carry new reporting formats. ITR-5 now allows buyback losses only if the related dividend has been taxed. ITR-6 requires companies to split capital gains for transactions before and after July 23, 2024, report profits from cruise operations and diamond sales, and disclose buyback-related losses in detail.
ITR-7 has new fields for reporting capital gains, housing loan interest under Section 24(b) and TDS section codes for better verification. The long-term capital gains (LTCG) tax for these entities has risen to 12.5% from 10%. Short-term capital gains are now taxed at 20%.
When can taxpayers expect the forms?
Both experts say that while the delay is inconvenient, it is meant to reduce errors on the e-filing portal. The utilities are expected to be made available soon, possibly by July itself.
The due date for filing these returns for non-audit cases is September 15, 2025. Taxpayers who file physically must also verify their returns using ITR-V by sending the signed form to CPC Bengaluru within 30 days, unless they opt for e-verification.
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