Income Tax: The Income Tax Department has notified the ITR-1 and ITR-4 forms for the assessment year 2025-26 on 29 April.
The Income Tax Department has notified ITR-1 and ITR-4 forms for Assessment Year 2025-26 (FY 2024-25). Meanwhile, experts believe that filing of Income Tax Return (ITR) can start from next week. He said that to meet the deadline of July 31, ITR filing should start from now. Let us tell you that the last date for ITRs which do not require audit is July 31.
According to News18, ITR forms are usually notified before the start of the assessment year (ie February or March) and ITR filing starts in April. However, this time the notification took time as the government has made some changes. Now, ITR filing should start next week so that there is no need to extend the July 31 deadline.
A look at the changes
The Income Tax Department has notified ITR-1 and ITR-4 forms for the assessment year 2025-26 on April 29. Meanwhile, it has now become easier for taxpayers earning long-term capital gains (LTCG) up to Rs 1.25 lakh from listed equities to file returns. According to the notification, taxpayers earning LTCG up to Rs 1.25 lakh through listed securities (section 112A) can file ITR-1. However, this is not applicable to short-term capital gains, LTCG from immovable properties or LTCG beyond the exemption limit of Rs 1.25 lakh under section 112A. According to the notification, ITR-1 will also not apply to carried-forward capital losses.
Section 112A provides for LTCG tax on sale of listed equity shares, equity-oriented mutual funds and business trusts. The LTCG tax rate for the financial year 2024-25 is 12.5 per cent. However, LTCG up to Rs 1.25 lakh is exempted.
According to the new government notification, a similar change has been made in the ITR-4 form. This applies to taxpayers who resort to presumptive taxation for their business income. The new ITR-4 form for assessment year 2025-26 also includes reporting of LTCG subject to tax under section 112A of the Income Tax Act within the limit of Rs 1.25 lakh.
Form 16
Even though ITR filing can start from next week. But people working on salary may have to wait a bit for this. Because, for this they need Form 16. Form 16 is an important document for salaried employees, which gives information about the salary paid during the business year and the tax deducted at sources (TDS). It is issued by the employers. As per the Income Tax rules, employers have to issue Form 16 by June 15, 2025.
Who will file ITR-1
- As per the norms, these taxpayers can file ITR-1 form –
- Total income during the business year should not exceed Rs 50 lakh.
- Income from salary, one house property, family pension.
- LTCG up to Rs 1.25 lakh under section 112A.
- Agricultural income (up to Rs 5,000).
- Other sources including interest income.
Who will file ITR-4
- ITR-4 can be filed by any resident, HUF, firm (other than LLP) who has –
- Income not exceeding Rs 50 lakh during the business year.
- Income from business and profession calculated on presumptive basis under section 44AD, 44ADA or 44AE.
- Salary or pension, one house property, agricultural income (up to Rs 5,000).
- LTCG up to Rs 1.25 lakh under section 112A.
- Interest from other sources such as savings account.
Read also: Income Tax Return: Government notified ITR-3 form, what are the changes; who has to file it
