ITR Forms– Big news for income taxpayer’s. The Income Tax Department has notified all 7 income tax return (ITR) forms for the assessment year 2025-26. ITR Forms 1 and 4 to be filed by small and medium taxpayers were notified on 29 April. ITR-7 to be filed by trusts and charitable institutions was notified on 11 May. This time some changes have been made in the ITR form. If you are also going to file tax returns for assessment year 2025 to 26, then definitely know about the amendments made in the ITR form.

ITR-1 and ITR-4: Changes related to capital gains

An important change has been made in the ITR-1 and ITR-4 forms which relates to long term capital gains (LTCG) from listed equity shares. Now, those taxpayers falling under the salaried class and presumptive taxation planning, whose LTCG in a financial year is up to Rs 1.25 lakh, can file ITR-1 or ITR-4. Earlier, they had to fill ITR-2.

Under the income tax rules, long-term capital gains up to Rs 1.25 lakh from the sale of listed stocks and mutual funds are exempt from tax. Further, gains above Rs 1.25 lakh per annum are taxed at 12.5 per cent.

New rules regarding TDS information

Changes have been made in the manner of claiming deductions under 80C, 80GG and other sections in the form. Apart from this, now taxpayers will have to submit TDS information in section wise form. Once the facility of filing ITR is made available by the Income Tax Department, people can start filing ITR ( Income Tax Return) for income arising in the financial year 2024-25.

Last date for filing ITR

The last date for filing ITR for individuals and those who do not want to get their accounts audited is July 31. 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.

What is ITR-1 and ITR-4 for?

ITR Form 1 and 4 for Assessment Year 2025-26 are to be filed by individuals and entities whose total annual income is up to Rs 50 lakh. ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simple forms that suit the needs of a large number of small and medium taxpayers.

ITR-1 (Sahaj): ITR 1 ‘Sahaj’ can be filed by individuals whose annual income is up to Rs 50 lakh and who have income from salary, one house property, other sources (interest) and agricultural income up to Rs 5,000.

 

ITR-4 (Sugam): ITR 4 ‘Sugam’ can be filed by individuals, Hindu Undivided Families (HUFs) and companies (other than Limited Liability Partnerships (LLPs)) having total annual income up to Rs 50 lakh and who earn their income from business and profession.

 

ITR-2: ITR-2 is filed by individuals and HUFs whose income is not from any business or professional profits or gains.