Income Tax: CBDT notifies ITR-1 Sahaj, ITR-4 Sugam for financial year 2024-25. These are the changes introduced

Income Tax: Central Board of Direct Taxes (CBDT) has finally notified income tax return filing forms (ITR-1 and ITR-4) via notification dated April 29, 2025.

Taxpayers were eagering waiting for the tax forms to be released for FY 2024-25. The last date to file income tax return (ITR) for individual taxpayers is July 31, 2025 for FY 2024-25. This means taxpayers still have three months to file their tax returns before the deadline.

These are tax forms released:

ITR-1: This tax form is meant for individuals who are residents (other than not ordinarily resident) earning an income upto ₹50 lakh and having Income from Salaries, one house property, other sources, long-term capital gains under section 112A up to Rs. 1.25 lakh, and agricultural income up to Rs. 5000.

ITR-4 (SUGAM): This income tax form is essentially meant for the Individuals, HUFs and Firms (other than LLP) being a resident having total income upto ₹fifty lakh and who have an income from business and profession computed under sections 44AD, 44ADA or 44AE, and having long-term capital gains as per provisions of section 112A upto ₹1.25 lakh.

What are the changes introduced?

I. ITR-1 and ITR-4 can now be used even if there is long-term capital gain (LTCG) under section 112A, so long as the long term capital gains (LTCG) does not exceed Rs. 1.25 lakh, and there is no loss to be carried forward or set off under the capital gains head.

Notably, these forms, till now, couldn’t be used if any capital gains existed .

II. All deductions (from 80C to 80U) are now to be selected from a drop-down menu in the e-filing utility. Specific clauses and subsections must be disclosed.

III. All bank accounts held at any time are to be reported, except dormant A/c.

IV. Minimum one account should be selected for refund credit. In case multiple accounts are selected, refund will be credited to one of the validated accounts decided by CPC after processing the return.

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