ITR-1, ITR-4 Forms For AY 2025-26 Notified By Income Tax Dept

New Delhi: The Central Board of Direct Taxes (CBDT) has notified the source of revenue tax go back paperwork ITR-1 and ITR-4 for the monetary yr 2024-25 and the review yr 2025-26. 

The returns for earning earned right through the monetary yr from April 1, 2024, to March 31, 2025, need to be filed the usage of the brand new paperwork.

A big alternate within the ITR paperwork this yr is that ITR-1 (SAHAJ) can also be filed for notifying long-term capital positive factors (LTCG) underneath phase 112A. This is topic to the situation that the LTCG is no more than Rs 1.25 lakh, and the source of revenue tax assessee has no loss to hold ahead or activate underneath the capital positive factors head.

Earlier, ITR 1 didn’t have a provision to record capital positive factors tax. This yr, taxpayers who’ve long-term capital positive factors from the sale of indexed fairness stocks and equity-oriented mutual budget can use ITR-1 to report their tax returns.

However, ITR-1 paperwork can’t be filed in circumstances of taxpayers who’ve capital positive factors from the sale of area assets or temporary capital positive factors from indexed fairness and fairness mutual budget.

The notification additionally stipulates that during circumstances the place source of revenue tax assesses have opted out of the brand new source of revenue tax regime in AY 2024–25, they will have to claim and decide to both proceed or opposite the choice.

Those who’ve opted out of the brand new source of revenue tax regime for the primary time in AY 2025–26 will have to furnish Form 10-IEA acknowledgement main points.

Additionally, there will have to even be a explanation for the overdue submitting of Form 10-IEA.

In each ITR-1 & ITR-4 paperwork, all deductions starting from 80C to 80U will have to be selected from a drop-down within the e-filing facility, and the precise clauses and sub-sections will have to be published.

Income from retirement accounts maintained out of the country — falling underneath phase 89A — will now have progressed fields and a aid monitoring characteristic.

In ITR-4 phase 44AD (industry), if virtual transactions make as much as 95 in step with cent of the industry’ transactions, then the turnover threshold has now been modified to Rs 3 crore. In Section 44ADA (pros): Under the similar virtual receipts situation, the restrict has now been larger to Rs 75 lakh.

All financial institution accounts, being held in India right through the former yr, barring the dormant ones, will now need to be compulsorily reported within the ITR 1 and ITR 4 paperwork.