ITR forms changed: Income Tax Department notifies Form 1 and 4 for Assessment Year 2025-26

Usually ITR forms are notified around February-March before the end of the financial year. However, this time there has been a delay in the facility of filing ITR forms and documents.

Income Tax Return: The Income Tax Department has notified ITR Form 1 and 4 for the assessment year 2025-26. With this, filing of returns has been made easier for individuals with long term capital gains up to Rs 1.25 lakh from listed shares. The government has made some changes in the form regarding deductions claimed under 80C, 80GG and other sections. Along with this, taxpayers will have to submit complete details in ITR regarding TDS deduction.

Opportunity for these people till July 31

Once the facility of filing ITR is made available by the Income Tax Department, people can start filing ITR for income earned in the financial year 2024-25. The last date for filing ITR for individuals and those who do not want to get their accounts audited is July 31.

This time there was a delay

Let us tell you that usually ITR forms are notified around February/March before the end of the financial year. However, this time the facility of filing ITR forms and documents was delayed as the Revenue Department officials were busy with the new Income Tax Bill which was introduced in Parliament in February. ITR Forms one and four for the assessment year 2025-26 are to be filed by individuals and entities whose total annual income is up to Rs 50 lakh.

Now salaried individuals and those coming under the presumptive taxation scheme, who have long term capital gains up to Rs 1.25 lakh in a financial year, will be able to file ITR-1 and ITR-4 respectively. Earlier such individuals/entities had to file ITR-2.

Exemption up to how much amount

Under the Income Tax Act, LTCG up to Rs 1.25 lakh from the sale of listed shares and mutual funds is exempted from tax. Profits above Rs 1.25 lakh per annum are taxed at 12.5 per cent.

Who can use these simplified forms?

ITR Form 1 (Sahaj): This form is applicable to resident individuals with an annual income of up to ₹50 lakh, deriving income from salary, ownership of a single house property, other sources (such as interest), and agricultural income not exceeding ₹5,000 per year. Importantly, this now includes those with LTCG up to ₹1.25 lakh.

ITR Form 4 (Sugam): Individuals, HUFs, and firms (excluding LLPs) with a total annual income of up to ₹50 lakh and income generated from business and profession can utilize this form.

ITR-2: This more detailed form is now specifically for individuals and HUFs who do not have income from profits and gains in business or profession, or those with LTCG exceeding ₹1.25 lakh or capital losses to carry forward.

The post ITR forms changed: Income Tax Department notifies Form 1 and 4 for Assessment Year 2025-26 first appeared on informalnewz.

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