Daijiworld Media Network - New Delhi

New Delhi, Apr 30: The Central Board of Direct Taxes (CBDT) has officially notified the new income tax return forms ITR-1 (SAHAJ) and ITR-4 for the financial year 2024–25 and assessment year 2025–26, incorporating several significant changes for taxpayers filing returns for income earned between April 1, 2024, and March 31, 2025.
ITR-1 Now allows limited capital gains reporting

One of the most notable updates is the inclusion of a provision in ITR-1 to report long-term capital gains (LTCG) under Section 112A, provided the gains do not exceed Rs 1.25 lac and there are no capital loss carry-forwards. This allows salaried taxpayers with minor capital gains from listed equity shares and equity-oriented mutual funds to file using the simpler ITR-1 form a facility not previously available.

However, ITR-1 cannot be used for declaring:

• Capital gains from sale of house property, or
• Short-term capital gains from listed equity or mutual funds.

New regime Opt-Outs must declare details

Taxpayers who have opted out of the new income tax regime in AY 2024–25 must indicate whether they will continue or reverse their choice in the current assessment year. For those opting out for the first time in AY 2025–26, Form 10-IEA acknowledgment details must be submitted. Provisions have also been introduced to clarify scenarios where Form 10-IEA is filed late.

Deduction reporting made detailed

Taxpayers filing under ITR-1 or ITR-4 must now choose their deductions under Sections 80C to 80U from a dropdown menu on the e-filing portal, specifying exact clauses and sub-sections. This aims to enhance transparency and accuracy in claim reporting.

Enhanced reporting for retirement income abroad

For those with retirement accounts abroad, governed under section 89A, the updated ITR forms include improved tracking fields and a relief calculation feature to ensure correct tax treatment and relief claims.

Presumptive taxation thresholds revised

In ITR-4, under section 44AD (business) and section 44ADA (professionals):

• Businesses with at least 95% digital receipts can now claim presumptive taxation on turnover up to Rs 3 cr (up from Rs 2 cr).
• Professionals meeting the same condition can now avail benefits up to Rs 75 lac in gross receipts (earlier Rs 50 lac).

Bank accounts disclosure mandatory

Another key amendment mandates disclosure of all non-dormant bank accounts held in India during the financial year. This includes all active accounts, even if not used frequently, in both ITR-1 and ITR-4 filings.

These streamlined changes aim to expand filing convenience for salaried individuals and small businesses, while also tightening transparency and compliance measures in income and deduction disclosures.

Taxpayers are advised to go through the updated forms and guidance carefully before the return filing window opens later this year.