ITR-1 AY 2025–26 Vs AY24–25: Check 10 Changes This Year And Impact On Salaried Individuals

Eligibility Criteria

Allowed for resident folks with source of revenue from wage, one area belongings, different assets (like pastime, pension). Capital positive aspects weren’t allowed.

Now contains taxpayers with LTCG as much as ₹1.25 lakh below Section 112A (e.g. sale of fairness mutual finances or indexed stocks), if no losses are carried ahead.

Salaried taxpayers with small inventory marketplace positive aspects not wish to shift to ITR-2 — simplifies submitting for first-time and small traders

Reporting of LTCG (Section 112A)

Not accepted in any respect. Even ₹1 of LTCG will require switching to ITR-2.

Allowed as much as ₹1.25 lakh, with a particular time table to file tax-exempt LTCG (below “Income on which no tax is payable”).

Empowers salaried folks with passive capital positive aspects (e.g. ELSS, mutual finances) to stay inside ITR-1 limits — encourages retail making an investment.

Form 10BA Requirement for Section 80GG Deduction (Rent Paid with out HRA)

Salaried individuals paying hire with out receiving HRA may declare deduction below 80GG with out pre-submitting Form 10BA.

Now, salaried taxpayers will have to report Form 10BA electronically earlier than claiming 80GG deduction.

Ensures higher compliance — salaried folks claiming hire deductions will have to plan previous and validate hire main points in advance.

TDS/TCS Reporting

Just needed to file general TDS in keeping with Form 16/26AS.

Now calls for taxpayer to specify the phase below which TDS/TCS used to be deducted, comparable to 192 (wage), 194A (pastime), and many others.

Makes matching with Form 26AS and AIS smoother — is helping salaried taxpayers save you mismatch problems that incessantly lengthen refunds.

Section 115BAC (New Tax Regime) Declaration

Option to choose in/out used to be there, however many customers had been unaware or perplexed because of loss of readability and connection with the specified shape.

Now calls for taxpayer to specify the phase below which TDS/TCS used to be deducted, comparable to 192 (wage), 194A (pastime), and many others.

Salaried folks can now explicitly choose from previous and new regimes and are reminded to report Form 10-IEA for opting out — avoids flawed regime default.

Nature of Employment Classification

Limited to “Govt”, “Non-Govt”, or “Others”.

Now contains: Central Govt, State Govt, PSU, Pensioner (CG, SG, PSU), Others, Family Pension, Not Applicable.

Helps salaried and retired workers categorize themselves extra correctly, bettering TDS applicability and Form 16 alignment.

Exempt Income Reporting (Section 10)

Broad and unstructured — needed to manually describe exempt earning like HRA or LTA.

Now supplies dropdown menus for more than a few varieties of exempt source of revenue, together with HRA, gratuity, LTC, commuted pension, and many others

Enhances readability and simplicity for salaried workers receiving structured wage parts and retirement advantages.

Disclosure below Seventh Proviso to Section 139(1)

General point out of high-value spending (e.g., electrical energy, shuttle), however many neglected it because of deficient visibility.

Clearly asks for main points of: – Foreign shuttle (₹2 lakh+); – Electricity expenses (₹1 lakh+); – Cash deposits (₹1 crore+)

Salaried folks with high-value spends will have to file correctly — prevents non-compliance although source of revenue is underneath taxable limits.

Section 89A:Deferred Tax on Foreign Retirement Income

Available however no longer obviously outlined in shape.

Enhanced reporting for the ones claiming reduction below Section 89A for retirement finances held in notified international nations.

NRIs or returning citizens (e.g., Indian workers of MNCs) get pleasure from readability in deferring tax on such source of revenue.

Schedule for Tax Payments & Refunds

Basic reporting of TDS and refund account.

Improved checking account validation, IFSC main points. Option to select most popular refund account

Prevents refund disasters or misdirected bills for salaried folks.