CBDT notifies ITR Form-1 (SAHAJ) and ITR Form-4 (SUGAM) for the Assessment Year 2025-26

By Author | April 30, 2025
CBDT Notification – 2025

The Central Board of Direct Taxes (CBDT) issued Notification No. 40/2025 on April 29, 2025. The notification introduces ITR Form-1 (SAHAJ) and ITR Form-4 (SUGAM) for the Assessment Year 2025–26.

ITR Form-1 (SAHAJ) applies to resident individuals (except those who are not ordinarily residents) with a total income of up to ₹50 lakh. Eligible taxpayers must earn income from salaries, one house property, other sources (like interest), long-term capital gains under Section 112A up to ₹1.25 lakh, and agricultural income up to ₹5,000.

ITR Form-4 (SUGAM) is for resident individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) with total income up to ₹50 lakh. This form applies if the taxpayer earns business or professional income under Sections 44AD, 44ADA, or 44AE, and long-term capital gains under Section 112A up to ₹1.25 lakh.

Both forms are part of CBDT’s effort to simplify compliance and improve ease of filing for small taxpayers.