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Business Standard
05-06-2025
- Business
- Business Standard
ITR-1, ITR-4 forms go live: Know what has changed, who can file online
People can file their Income Tax returns (ITR) for assessment year 2025-26 as the Central Board of Direct Taxes (CBDT) has enabled the online filing of ITR-1 and ITR-4 forms on its e-filing portal The website has pre-filled data, aimed at simplifying the return filing process for millions of salaried and small business taxpayers. Who can file ITR-1 and ITR-4? Both ITR forms are designed for individuals with relatively simple income profiles, said Naveen Wadhwa, vice-president of Taxmann. ITR-1 (Sahaj) is for resident individuals (not Hindu Undivided Families, HUF) or firms) having: Salary or pension income One-house property (no carried-forward losses) Income from other sources (excluding lottery or racehorse winnings) Total income up to Rs 50 lakh Long-term capital gains under Section 112A up to Rs 1.25 lakh (new inclusion) ITR-4 (Sugam) is for resident individuals, HUFs, or firms (other than LLPs) having: Presumptive income under sections 44AD, 44ADA, or 44AE Total income up to Rs 50 lakh Income from one-house property and other sources Long-term capital gains under Section 112A up to Rs 1.25 lakh, with no capital losses carried forward According to CBDT's rules, individuals earning capital gains up to Rs 1.25 lakh under Section 112A (from listed equity shares, mutual funds, or business trusts) can now file ITR-1 or ITR-4, provided there is no carried forward loss. This change addresses a long-standing concern among small investors. Calculate Income Tax: Income Tax Calculator Tool 'This amendment will benefit a large number of small taxpayers who earlier had to switch to complex forms like ITR-2 or ITR-3 just because of minor capital gains,' said Wadhwa. Wadhwa explained the changes that taxpayers need to keep in mind this time: Aadhaar Enrolment ID not accepted: From October 1, 2024, only the actual Aadhaar number (not the enrolment ID) can be used for PAN applications and return filing. Capital gains disclosures: If your capital asset was sold after July 23, 2024, new tax rules apply. Taxpayers must now disclose the transfer date, as tax rates and indexation benefits differ based on that. Detailed tax regime disclosure: ITR-4 now requires more specifics on whether the taxpayer wants to opt out of the new tax regime under Section 115BAC. Where to file returns Taxpayers can log in to to access the pre-filled ITR-1 and ITR-4 forms and submit them online. With the ITR forms now live, experts suggest early filing to avoid last-minute rush or errors. 'Taxpayers should cross-check their prefilled data, especially TDS and bank interest, before submission,' said Wadhwa. For AY 2025–26, the deadline for most individual taxpayers is September 15 (for non-audit taxpayers).
Time of India
30-05-2025
- Business
- Time of India
IT department releases Excel utilities for ITR-1 and ITR-4 for AY 2025-26
The Income tax department on Friday announced that the Excel utility for filing (ITRs) using forms ITR-1 and ITR-4 for Assessment Year 2025–26 is now available. "The Excel Utility for ITR-1 and ITR-4 for AY 2025-26 has been enabled and is now available for taxpayers," the department said in a post on X. Tired of too many ads? go ad free now With the release of these utilities, taxpayers can now begin filing their returns for income earned during the financial year 2024–25. This year, the deadline for filing ITR-1 and ITR-4 has been extended to September 15, from the usual July 31, giving taxpayers additional time to comply. The forms were officially notified on April 29. However, the enabling of the filing utilities was delayed due to 'structural and content revisions' introduced this year. According to the department, additional time was needed for system development, integration, and testing. Himank Singla, Partner at SBHS & Associates, welcomed the move. 'It's a big relief to see that the Excel Utilities for ITR-1 and ITR-4 for Assessment Year 2025–26 have been released. I have already filed ITR-4 using the utility, and the process was smooth. There are no major changes in the ITR-4 schema compared to last year,' he said, as quoted an ET report. However, he highlighted a significant change in the ITR-1 schema. 'A new validation rule has been added: if certain TDS section codes appear—like 194B, 194BB, 194S, 194LA, 195, 196A, 194Q, or 194R—the utility will disqualify the return from being filed under ITR-1. This is particularly relevant for those earning from sources such as online gaming, crypto, lotteries, or property transfers,' Singla explained. 'This is a very welcome and practical change. In earlier years, many filers unknowingly submitted ITR-1 with such income types, only to receive defective return notices. This rule prevents incorrect filings at the source and saves time and confusion,' he added. Who can file ITR-1 and ITR-4? ITR-1 is available for resident individuals (excluding "not ordinarily resident") with total income up to Rs 50 lakh. Eligible income sources include salary, one house property, interest income, long-term capital gains under Section 112A (up to Rs 1.25 lakh), and agricultural income up to Rs 5,000. Company directors, individuals with unlisted equity investments, income-tax deferral on ESOPs, foreign assets, or deductions under TDS section 194N are not eligible. ITR-4 applies to individuals, HUFs, and firms (excluding LLPs) with income up to Rs 50 lakh, and income from business or profession under presumptive taxation (Sections 44AD, 44ADA, 44AE), as well as long-term capital gains under Section 112A (up to Rs 1.25 lakh).
India Today
29-05-2025
- Business
- India Today
Which tax form should salaried individuals choose: ITR-1 or ITR-2?
As the income-tax filing season for 2025-26 commences, salaried individuals face the decision of choosing the appropriate tax form between ITR-1 and ITR-2. Understanding the eligibility criteria and recent updates is crucial for ensuring accurate tax Income Tax Department has notified all ITR forms earlier this month, prompting individuals to start preparing their documents, although Form 16s are typically released in the month of June. Notably, the changes introduced in the recent Budget have introduced modifications in tax slabs and capital gains tax regulations, affecting the selection of tax forms this IS ITR-1 (SAHAJ)?ITR-1, also known as Sahaj, is designed for resident individuals whose income does not exceed Rs 50 lakh. This simple form is appropriate for those whose income sources are limited to salary, pension, one house property, and income from savings or fixed deposits, dividends, and family pension. Additionally, taxpayers with long-term capital gains (LTCG) up to Rs 1.25 lakh from listed equity shares or equity mutual funds under Section 112A can utilise this form for the current financial year. The ease of use is further enhanced by pre-filled personal information and income details, allowing for online verification against documents like Form-16 and bank account not every salaried individual qualifies for ITR-1. Several conditions outlined by the income-tax department render some taxpayers ineligible for this form. These include having a total income exceeding Rs 50 lakh, capital gains under Section 112A surpassing Rs 1.25 lakh, directorship in a company, ownership of unlisted equity shares, or having foreign income, accounts, or deferred tax on ESOPs, and any carried forward or brought forward losses also disqualify individuals from using ITR-1, necessitating the use of SHOULD USE ITR-2?ITR-2 is meant for individuals or Hindu Undivided Families (HUFs) who don't qualify to file ITR-1 and have no income from a business or form is also suitable if you haven't earned income in the form of interest, salary, bonus, commission, or any other payment from a partnership firm. Moreover, those who are clubbing income—like that of a minor child or spouse—must choose ITR-2 if the income involved matches these is imperative for taxpayers to carefully review their financial activities against the eligibility criteria for ITR-1 and ITR-2. By understanding the nuances of each form, taxpayers can make informed decisions, streamlining their tax filing process for the year. As the income-tax department continues to roll out updates, staying informed about these changes can significantly benefit those navigating the complexities of tax returns.
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Business Standard
20-05-2025
- Business
- Business Standard
Start early, choose right ITR form: Tax guide for professionals
Professionals must select the correct ITR form and assess whether presumptive taxation or regular provisions suit their income, expenses and documentation requirements Premium Sanjeev Sinha New Delhi Listen to This Article With the tax filing season underway, professionals should initiate the process early. This will enable them to file timely and accurate tax returns. Early filing of returns will also help them receive tax refunds sooner. Choose correct ITR form Resident professionals opting for the presumptive taxation scheme (PTS) regime under Section 44ADA typically file using ITR-4 (Income Tax Return Form 4). However, if total income exceeds ₹50 lakh or includes capital gains (excluding long-term gains under Section 112A up to ₹1.25 lakh), foreign income or assets, income from multiple house properties, or agricultural income over ₹5,000, ITR-3 becomes applicable.
India Today
20-05-2025
- Business
- India Today
ITR-1 Sahaj vs ITR-4 Sugam: Which ITR form should you use?
Filing your income tax return can be confusing, especially when it comes to choosing the right form. Two forms that often leave people puzzled are ITR-1, also known as Sahaj, and ITR-4, also known as Sugam. Both are for people earning up to Rs 50 lakh, but they are meant for different types of article will help you understand the difference between ITR-1 and ITR-4 clearly and help you decide which one suits you IS ITR-1 (SAHAJ)?'ITR-1 is designed for resident individuals whose total income does not exceed Rs 50 lakh. This form is suitable for those earning income from a salary or pension, income from one house property, and income from other sources such as interest,' stated CA Shefalii this form isn't allowed if the person has capital gains (other than certain long-term capital gains exempt under Section 112A), business or professional income, agricultural income over Rs 5,000, multiple house properties, or any foreign income or assets, pointed out CA (Dr) Suresh IS ITR-4 (SUGAM)?If you earn through freelancing, run a small business, or practice a profession like medicine, consultancy, or retail, ITR-4 might be for you. This form is designed for those opting for the presumptive taxation scheme, where income is declared at a fixed rate instead of maintaining detailed also known as Sugam, is applicable to taxpayers, Hindu Undivided Families (HUFs), and firms (other than LLPs) whose total income does not exceed Rs. 50 lakhs and who opt to declare income under the presumptive taxation scheme under sections 44AD, 44ADA, 44AE of the IT Act,' said CA ITR-4 is valid for those earning up to Rs 50 lakh from presumptive business or professional income, plus additional income from salary, pension, a single house property, and other sources, stated CA DO ITR-1 AND ITR-4 DIFFER?The main difference between the two forms lies in the type of income they cover. ITR-1 is for straightforward income from salary or pension, while ITR-4 is suitable if you're into small business or freelance work and are using the presumptive taxation scheme. If you have business or professional income, ITR-1 won't work for you—you'll need ITR-4 instead, as mentioned above. Credit: CA Shefalii Mundra NEW UPDATE: LTCG UNDER SECTION 112ABoth forms now allow reporting of long-term capital gains (LTCG) under Section 112A up to Rs 1.25 lakh. According to CA Mundra, this change benefits those who have LTCG from stocks or mutual funds but otherwise meet the Sahaj or Sugam criteria, making tax filing smoother without needing to shift to ITR-2 or choosing between ITR-1 and ITR-4 depends on how you earn your money. Picking the correct form helps avoid delays, errors, and notices from the tax department. So take a few minutes to understand your income sources and file smartly.
