New Delhi: The Central Board of Direct Taxes (CBDT) has now notified Income Tax Return (ITR) Forms 1 and 4. The notified forms will be applicable for the financial year 2024-25 and assessment year 2025-26. The rest of the ITR forms are expected to be notified soon and will be available to fill and submit those. With the release of ITR-1 and ITR-4 forms, taxpayers will be able to file their returns easily. The forms will enable taxpayers to report the incomes earned between April 1, 2024, and March 31, 2025, to the government.
It may be noted that all taxpayers cannot file their income tax returns using the notified forms as the forms are selected as per the source and nature of income. The I-T department has set guidelines for each form and the taxpayers are required to be eligible to file their income tax returns using the notified ITR forms.
Changes in ITR 1 form
The Income Tax department has made a change in the ITR-1 form. Earlier, there was no facility to show capital gain tax in it. However, the taxpayers who need to show long-term capital gain which they received from selling of equity shares or equity-oriented mutual funds, can now file tax return by showing it in ITR-1. Earlier one had to fill ITR-2 for this.
Who can file ITR-1
- A person who is a resident of India (but not an ordinary resident). The individual’s total income should be up to Rs 50 lakh.
- The taxpayer opting for ITR-1 should have the income source from salary, rent or other income from self-use and interest.
- The individual’s long-term capital gain (under section 112A) should not be more than Rs 1.25 lakh
- The income from agriculture is less than Rs 5,000
- But if you have made capital gains by selling a house, or short term gains from shares/mutual funds, then you cannot file ITR-1.
ITR-4
- ITR-4 form is for individuals, HUFs or firms (but not LLP), resident in India and having total income up to Rs 50 lakhs.
- The taxpayer’s source of income should be from business or profession. It is calculated under section 44AD, 44ADA or 44AE,
- And whose long term capital gain (under section 112A) is up to Rs 1.25 lakh.
- Also read: Income Tax Department will also track your movement, new update is coming in ITR form
- If a person is associated as a director in a company, the individual will be ineligible to file ITR-4
- People who invest in in unlisted shares, cannot file ITR-4
- Tax is deferred on ESOP
- Taxpayer’s agricultural income is more than 5,000
- The individual choosing ITR-4 should not have any assets or financial interests abroad.
The Central Board of Direct Taxes (CBDT) has notified ITR Form 1 and 4 for the financial year 2024-25 and assessment year 2025-26. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
