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Suspense Crime,Digital Desk:Income Tax Return: The ITR Form 1 and 4 have been issued by the Income Tax Department for the assessment year 2025-26. Now, the individuals with long term capital gains of up to ₹1.25 lakh from listed shares will find it easier to file returns. Also, some changes have been made by the government in the deductive policies under the 80C, 80GG and other sections. Additionally, the taxpayers will need to complete all outlines in ITR Pertaining to TDS deductions.
People eligible till July 31
As soon as the ITR filing facility is operational, the Income Tax Department will open the ITR portal for people to file their income earned in the 2024-25FY. The due date for the submission of ITR for individual taxpayers not opting for an audit is July 31.
This time there was a delay
The ITR forms are usually announced in February to March, prior to the closing of the financial year. In this instance as well, due to the new Income Tax Bill brought into Parliament for discussion in February, the Revenue Department's officials did not have time to issue and accept ITR forms and documents. Now, individuals and entities whose total annual income is capped at Rs. 50 lakh are eligible to file ITR 1 and ITR 4 for the Assessment year 2025-26.
Now, those who are in the salaried category and those covered under presumptive taxation with long term capital gains up to 1.25 lakhs in a financial year would be able to file ITR 1 and ITR 4. In previous iterations such people had to file ITR 2.
Exemption up to how much amount
LTCG, which stands for Long Term Capital Gains, of up to Rs 1.25 Lakhs coming from listed shares and mutual funds incurs no tax under The Income Tax Act. For every 1.25 Lakhs exceeding, an annual tax of 12.5 percent is levied.
Who is able to make use of the simplified forms?
ITR Form 1 (Sahaj): This form is relevant for residents earning up to ₹50 lakh a year and receiving income from salary, a singular house property, variousother sources like interest , and agricultural income not surpassing ₹5,000 a year. Most importantly, this now includes people with LTCG up to ₹1.25 lakh.
ITR Form 4 (Sugam): This form can be used by individuals, HUFs and firms (other than LLPs) who have a total annual income of up to ₹50 lakh and income sourced from business endeavors and profession.
ITR-2: This is a new, more complex form that is now tailored for individuals and HUFs who do not earn income from profits and gains in business or profession, or those whose income includes LTCG of more than ₹1.25 lakh or capital losses that can be carried forward.
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