ITR Filing 2025: The Central Board of Direct Taxes (CBDT) has notified the Income Tax Return Forms ITR-1 and ITR-4 for the Financial Year 2024-25 and Assessment Year 2025-26. Some changes have also been made in these. Know about it here.
ITR Filing 2025: After a long wait, the Central Board of Direct Taxes (CBDT) has finally notified the Income Tax Return Forms ITR-1 and ITR-4 for the Financial Year 2024-25 and Assessment Year 2025-26. ITR returns for income earned during the financial year 1 April 2024 to 31 March 2025 will have to be filed through these new forms. Major changes have also been made in the new forms.
This big change in ITR-1
A major change in ITR forms this year is that ITR-1 (Sahaj) can be filed to notify Long Term Capital Gains (LTCG) under Section 112A. But there is a condition attached to it that the LTCG should not exceed Rs 1.25 lakh and the taxpayer should not have any capital loss to carry forward or ‘set off’. Let us tell you that earlier there was no provision to show capital gains tax in ITR-1. Now taxpayers can use ITR-1 form to show LTCG from the sale of listed equity shares and equity mutual funds. Earlier for this, taxpayers had to file form ITR-2. However, if a taxpayer has capital gains from the sale of house property or short term capital gains (STCG) from listed equity and mutual funds, then those people cannot use ITR-1 form. Those who do not choose the new tax regime will have to make this declaration
The notification also states that taxpayers who had opted out of the new tax regime in AY 2024-25 will have to declare whether they will continue with the same option or withdraw it in AY 2025-26. Those who have decided to opt out of the new tax regime for the first time in AY 2025-26 will have to provide the Acknowledgement Details of Form 10-IEA. Apart from this, there should also be an explanation for the late filing of Form 10-IEA.
Know what else was said in the notification
In both ITR-1 and ITR-4 forms, all deductions from sections 80C to 80U will have to be selected from the drop-down menu on the e-filing portal and the relevant clauses and sub-sections will have to be clarified. Improved fields and relief tracking features will now be available for income from retirement accounts held abroad (Section 89A).
Under ITR-4 section 44AD (Business), if digital transactions are up to 95 per cent of business transactions, the turnover limit will now be Rs 3 crore. Under the same digital receipt condition in section 44ADA (Professional), the limit has now been increased to Rs 75 lakh. All bank accounts held in India during the financial year (except dormant accounts) will now have to be mandatorily reported in ITR-1 and ITR-4 forms.
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