Govt notifies ITR forms; individuals with LTCG up to ₹1.25 lakh can file ITR 1, 4
The government has notified Income Tax Return (ITR) forms 1 and 4 for Assessment Year (AY) 2025-26, simplifying the filing process for individuals earning salary or presumptive income who have long-term capital gains (LTCG) up to ₹1.25 lakh from listed equities. Previously required to file the more complex ITR-2, these taxpayers can now use the simpler ITR-1 (Sahaj) and ITR-4 (Sugam) forms, respectively.
This change addresses a specific inconvenience highlighted by tax experts. Sandeep Jhunjhunwala, Tax Partner at Nangia Andersen LLP, explained that previously, 'salaried individuals having income under the head capital gains were required to file form ITR-2 even where the capital gains were exempt by virtue of the threshold limit prescribed under Section 112A, resulting in elaborate disclosure requirements.'
The new ITR-1 and ITR-4 forms for AY 2025-26 incorporate a section for reporting LTCG exempt under Section 112A up to the ₹1.25 lakh limit. According to the Income Tax law referenced in the notification context, LTCG up to ₹1.25 lakh per annum from the sale of listed shares and mutual funds are exempt, with gains exceeding this threshold subject to a 12.5 per cent tax.
However, Mr. Jhunjhunwala clarified that salaried individuals must still use Form ITR-2 if their LTCG under Section 112A exceeds ₹1.25 lakh, if they have other types of LTCG or short-term capital gains, or if they have capital losses to carry forward or bring forward. A similar simplification for reporting exempt LTCG (up to ₹1.25 lakh under Section 112A) has been incorporated into the new ITR-4 form for taxpayers using the presumptive taxation scheme.
Experts lauded the simplification. EY India Tax Partner Samir Kanabar stated that allowing those with minimal LTCG to use ITR-1 or ITR-4 'reduces the burden of navigating more complex forms.' He added, 'This move reflects a clear shift towards enhancing taxpayer services... [it] is expected to encourage greater voluntary compliance, reduce filing-related stress, and make the system more user-friendly for small taxpayers.' AKM Global Partner-Tax Sandeep Sehgal echoed this, noting the change 'streamlines the tax filing process, making it more accessible and less burdensome... thereby encouraging timely and accurate compliance'.
ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) cater to small and medium taxpayers with total annual income up to ₹50 lakh. Sahaj is for resident individuals with income from salary, one house property, other sources (like interest), and agricultural income up to ₹5,000. Sugam is for individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) with income from business and profession under the presumptive scheme. ITR-2 is filed by individuals and HUFs without business or profession income.
Beyond the LTCG change, the government has introduced other modifications. The forms now feature a drop-down menu in the utility for selecting deductions claimed under sections like 80C and 80GG. Additionally, assessees must furnish section-wise details regarding Tax Deducted at Source (TDS) deductions within the ITR.
Consistent with last year, ITR-1 continues to seek details on expenditures exceeding ₹2 lakh on foreign travel and over ₹1 lakh on electricity consumption during the previous year.
Regarding the timeline, the ITR forms are typically notified earlier, around February or March. The delay this year was attributed to Revenue Department officials being preoccupied with the new Income Tax Bill introduced in Parliament in February. Taxpayers can begin filing their returns for income earned in the 2024-25 financial year once the I-T department makes the filing utility available. The deadline for individuals not requiring an audit remains July 31.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
23 minutes ago
- Time of India
Income Tax Return: Are capital gains from MFs taxed differently under new & old regime? What taxpayers should know about new LTCG, STCG rules
Capital gains from sale of mutual funds (MFs) are taxable In India, under both the old and new income tax regimes. (AI image) Income Tax Return Filing AY 2025-26: One important aspect of income tax return filing, apart from reporting income from salary, is also filling in details of any capital gains - short-term or long-term - that you have made during the financial year. If you are wondering whether taxation of capital gains made from mutual funds differs between the new and the old income tax regime, we have you covered. Capital Gains From MFs: How Does Taxation Work? Capital gains from sale of mutual funds (MFs) are taxable In India, under both the old and new income tax regimes. The categorization of the MF, method of computation of capital gains, is not impacted by the choice of the income tax regime by an individual. 'All the deductions available while computing the capital gains, including towards reinvestment in the specified new asset, continue to be equally available under both the new and old income tax regimes,' says Parizad Sirwalla, Partner and Head, Global Mobility Services, Tax, KPMG in India. Also Read | ITR e-filing FY 2024-25: What is the benefit of pre-filled ITR forms on the income tax portal? Top points In general, from a taxability perspective, MFs are broadly categorized into equity MFs and non-equity MFs. There is also a special category of specified MFs within the non-equity MFs. Parizad Sirwalla tells TOI, 'Effective 23 July 2024, gains from sale of equity MFs, if held for more than 12 months, are classified as Long-term (LTCG) and gains (exceeding Rs 1.25 lakh) are taxable at 12.50%. Short Term Capital Gains (STCG) from sale of equity MFs are taxable at 20%.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với sàn môi giới tin cậy IC Markets Tìm hiểu thêm Undo Gains from sale of non - equity MFs, held for more than 24 months, are considered LTCG and taxable at 12.50%. STCG from sale of non-equity MFs are taxable as per the income tax slab rates. Further, gains from specified MFs are deemed to be STCG irrespective of the holding period and taxable as per the tax slab rates. Applicable surcharge and cess apply on the above tax rates 'The tax slab rates, surcharge rates and applicable rebates, will apply qua the tax regime chosen. The maximum surcharge under the old tax regime is 37% (triggers beyond income of Rs 5 crore) while under the new regime it is restricted to 25% (triggers beyond income of Rs 2 crore). It may be noted that under both tax regimes, surcharge is restricted to 15% on all LTCG and STCG on equity MF,' Parizad Sirwalla adds. Also Read | ITR e-filing AY 2025-25: What is Annual Information Statement (AIS) and how is it different from Form 26AS? Top points for taxpayers Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
3 hours ago
- Time of India
How Trump's visa crackdown is pushing 16 US colleges toward financial collapse
Why 16 US colleges could collapse under Trump's foreign student visa crackdown As the Trump administration intensifies restrictions on international student visas, a growing number of financially vulnerable US colleges are facing a dire threat to their survival. The new policy measures, framed as a response to campus antisemitism and national security concerns, have halted key visa appointments and blocked access for students from more than ten countries, placing colleges heavily reliant on foreign tuition in an existential crisis. According to Forbes, 16 private nonprofit US colleges are particularly exposed. Each of these institutions enrolls at least one-third of their students from overseas and derives over half of their operating revenue from tuition and fees. Many already scored C+ or lower on Forbes' most recent financial health rankings, a signal that they were struggling even before the visa policy changes. Foreign students as a financial lifeline Colleges such as St. Francis in Brooklyn have turned to international enrollment as a revenue strategy. After years of deficits, St. Francis closed fiscal 2023 with $66 million in net income, largely from the $160 million sale of its main campus and deep budget cuts—including scrapping its Division I athletics program and laying off staff. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Buy Brass Laxmi Ji Idol For Wealth, Peace & Happiness Luxeartisanship Shop Now Undo Still, auditors remain skeptical about its long-term viability, with an endowment of only $46 million, or $16,409 per full-time student, Forbes reported. In just one year, St. Francis nearly tripled its international student headcount—from 465 to 1,289—mainly through graduate programs. In a June 2024 audit, university officials stated that international enrollment had become 'a significant source of revenue growth," as quoted by Forbes. But with student visas now under strict federal control, this key strategy is in jeopardy. Colleges caught in a tightening policy vise The Trump administration's new executive order bans visa issuance to individuals from 11 countries including Iran, Libya, and Yemen. This comes alongside the State Department's recent pause in F-1 and J-1 visa appointments. The consequences could be catastrophic for institutions like Harrisburg University and Hult International Business School, where more than 75% of students are international. Both schools received a D in Forbes' 2025 Financial Grades. Other colleges like Manhattan School of Music and California College of the Arts, where over 40% of students are foreign, also risk severe enrollment shortfalls. At Campbellsville University, 83% of operational revenue comes from tuition, and nearly half of students are international. National impact and muted college response Foreign students contribute billions to the US economy and often remain in the country after graduation. Forbes cited a 2022 study by the National Foundation for American Policy showing that one-quarter of billion-dollar US startups were founded by international alumni. Despite this, all 16 colleges declined to comment, fearing retaliation. As Forbes noted, institutions that speak out risk being singled out by the Trump administration, as happened with Harvard University's Student Visitor Exchange Program, which was suspended before a court order intervened. For many of these schools, international students are not just an asset—they are a necessity. Without them, the lights may soon go out. 1. St. Francis College (Brooklyn, NY): A small private college with financial challenges, previously noted for budget deficits and layoffs. International students likely bolster its revenue, and visa restrictions could exacerbate existing issues. 2. Harrisburg University of Science and Technology (PA): Known for attracting international students, particularly in STEM fields. A significant portion of its revenue comes from international tuition, making it sensitive to visa crackdowns. 3. Hult International Business School (Boston, MA): A global business school with a large international student body (over 80% in some programs). Its business model heavily depends on foreign students, and visa restrictions could severely impact enrollment. 4. Manhattan School of Music (NYC, NY): A specialized institution with a notable international student population. Arts schools often rely on international talent, and visa limitations could reduce enrollment and revenue. 5. California College of the Arts (CA): Another arts-focused institution with financial dependence on international students. Its small size and high tuition costs make it vulnerable to enrollment drops. 6. Campbellsville University (KY): A private Christian university with a significant international student population, particularly in graduate programs. Visa restrictions could strain its budget. 7. University of Bridgeport (CT): A private university with a history of financial struggles, recently acquired by Goodwin University. International students are a key revenue source, and visa policies could threaten stability. 8. New York University (NYU): With one of the highest international student populations (over 20% of enrollment), NYU was mentioned as vulnerable to visa crackdowns due to its reliance on international tuition. 9. Columbia University (NY): Also noted for a large international student share (around 30%) and targeted visa revocations, such as the case of Mahmoud Khalil, a graduate student arrested for pro-Palestinian protests. 10. Johns Hopkins University (MD): Has a significant international student population (around 25%) and relies on their tuition and research contributions. Visa restrictions could disrupt its financial model. 11. Carnegie Mellon University (PA): Known for a high proportion of international students (over 20%), particularly in STEM fields, making it susceptible to visa policy changes. 12. Northeastern University (MA): Frequently cited for its large international student body and reliance on their tuition. Visa crackdowns could impact its financial stability. 13. Boston University (MA): Another institution with a high international student share, noted as potentially affected by tightened visa controls. 14. University of Southern California (USC): A major destination for international students, particularly from China (over 15% of enrollment). Visa revocations targeting Chinese students could hit USC hard. 15. University of Illinois, Urbana-Champaign (IL): A public university with significant international enrollment (over $500 million in tuition revenue from foreign students in 2023-2024). 16. Arizona State University (AZ): Another public institution generating substantial revenue ($545 million in 2023-2024) from international students, making it vulnerable to enrollment declines. Is your child ready for the careers of tomorrow? Enroll now and take advantage of our early bird offer! Spaces are limited.
Economic Times
5 hours ago
- Economic Times
FD rate up to 8.8% for senior citizens investing for three years; Know the list of banks
ET Online Tenant eviction: After more than 10 years fight a landlord wins eviction case on ground of rebuilding of property; Know how There are still some banks who continue to offer up to 8.8% interest rate on fixed deposits (FD) made by senior citizens (age 60 years and above) for three year tenure and not exceeding Rs 3 crore. Read below to know the list of banks offering FD interest rate up to 8.8%. Bank FD interest rate for senior citizens FD rate up to 8.8% Suryoday Small Finance Bank is offering 8.8% interest rate on FD of three year tenure. FD rate up to 8.75% for senior citizens Utkarsh Small Finance Bank is offering 8.75% interest rate on FD for three year tenure for senior citizens. Bank Name FD rate Suryoday Small Finance Bank 8.8% Utkarsh Small Finance Bank 8.75% Unity Small Finance Bank 8.5% slice Small Finance Bank 8.25% Jana Small Finance Bank 8.25% Source: as of June 18, 2025 FD rate up to 8.5% Unity Small Finance Bank is offering up to 8.5% interest rate on FD for three year tenure. FD rate up to 8.25% slice Small Finance Bank is offering 8.25% interest rate on FD for three year tenure. Similarly, Jana Small Finance Bank is offering 8.25% interest rate on FD for three year tenure. Disclaimer: While deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, experts advise investors to exercise caution when investing in their FDs. Given their unique business model, the risk associated with investing in small finance bank FDs might differ slightly from that of scheduled commercial banks. To mitigate potential risks, it's recommended that investors limit their exposure to small finance bank FDs to an amount that falls within the DICGC coverage. This ensures that their principal and interest are protected in unforeseen circumstances. When is TDS deducted from bank FDs? TDS is required to be deducted by banks if the interest amount in an FD is above Rs 1 lakh in a particular bank. Do note that TDS is not any additional tax, you can get this tax back as a refund or adjust it with your total tax liability at the time of income tax return filing (ITR). Moreover, if you are eligible for a tax refund then you might be eligible for interest on tax instance, if a senior citizen's income is Rs 11 lakh then, it's not subject to income tax due to Section 87A tax rebate under the new tax regime for FY 2025-26. Section 87A tax rebate is available for up to Rs 12 lakh income level under the new tax a senior citizen can submit Form 15H to prevent TDS deduction if his total income after all deductions claim and Section 87A rebate is below the taxable limit like Rs 12 lakh for the new tax regime or Rs 5 lakh for the old tax the fact that no income tax is levied on such an income level (below Rs 12 lakh), banks and other financial institutions will still deduct TDS. This is because the law mandated them to deduct TDS once the interest/income amount crossed a particular threshold which was Rs 1 lakh for senior citizens. This happens because banks are not aware about tax liability and deduct TDS whenever the annual interest amount crosses Rs 1 lakh. So, can such a senior citizen file form 15H to avoid TDS on fixed deposits in such situations. N.R. Narayana Murthy Founder, Infosys Watch Now Harsh Mariwala Chairman & Founder, Marico Watch Now Adar Poonawalla CEO, Serum Institute of India Watch Now Ronnie Screwvala Chairperson & Co-founder, upGrad Watch Now Puneet Dalmia Managing Director, Dalmia Bharat group Watch Now Martin Schwenk Former President & CEO, Mercedes-Benz, Thailand Watch Now Nadir Godrej Managing Director, of Godrej Industries Watch Now Manu Jain Former- Global Vice President, Xiaomi Watch Now Nithin Kamath Founder, CEO, Zerodha Watch Now Anil Agarwal Executive Chairman, Vedanta Resources Watch Now Dr. Prathap C. Reddy Founder Chairman, Apollo Hospitals Watch Now Vikram Kirloskar Former Vice Chairman, Toyota Kirloskar Motor Watch Now Kiran Mazumdar Shaw Executive Chairperson, Biocon Limited Watch Now Shashi Kiran Shetty Chairman of Allcargo Logistics, ECU Worldwide and Gati Ltd Watch Now Samir K Modi Managing Director, Modi Enterprises Watch Now R Gopalakrishnan Former Director Tata Sons, Former Vice Chairman, HUL Watch Now Sanjiv Mehta Former Chairman / CEO, Hindustan Unilever Watch Now Dr Ajai Chowdhry Co-Founder, HCL, Chairman EPIC Foundation, Author, Just Aspire Watch Now Shiv Khera Author, Business Consultant, Motivational Speaker Watch Now Nakul Anand Executive Director, ITC Limited Watch Now RS Sodhi Former MD, Amul & President, Indian Dairy Association Watch Now Anil Rai Gupta Managing Director & Chairman, Havells Watch Now Zia Mody Co-Founder & Managing Partner, AZB & Partners Watch Now Arundhati Bhattacharya Chairperson & CEO, Salesforce India Watch Now
