✅ ITR-1 and ITR-4 Forms Notified for FY 2024-25: Key Changes You Should Know
📅 By Author | May 1, 2025
The Income Tax Department has officially notified the ITR-1 (Sahaj) and ITR-4 (Sugam) forms for Assessment Year 2025–26, allowing return filing for Financial Year 2024–25 to begin soon.
🔍 What’s New in ITR-1?
The department has revised the ITR-1 form this year. Taxpayers with long-term capital gains (LTCG) under Section 112A can now file ITR-1 — if the gains fall within the ₹1.25 lakh threshold.
✅ Earlier, these taxpayers had to file ITR-2. Now, this change aims to simplify the process for small investors.
A new section titled “Income on which no tax is payable: Long Term Capital Gains u/s 112A not chargeable to Income-tax” has been added.
🧾 Who Can Use ITR-1 Now?
You can file ITR-1 if:
- Your LTCG under Section 112A is up to ₹1.25 lakh
- Gains are from listed equity shares, equity mutual funds, or business trusts
❌ Who Cannot Use ITR-1?
Avoid ITR-1 if you have:
- Short-term capital gains
- LTCG on immovable property
- LTCG under Section 112A where tax is payable
- Carried forward or brought forward losses
📘 What’s in the ITR-4 Form?
ITR-4 is designed for:
- Resident Individuals, HUFs, and Firms (except LLPs)
- Those with total income up to ₹50 lakh
- Income from business or profession under presumptive schemes (Sections 44AD, 44ADA, 44AE)
- LTCG under Section 112A up to ₹1.25 lakh
❌ Who Shouldn’t Use ITR-4?
Do not file ITR-4 if:
- You are a director in a company
- You’ve invested in unlisted shares
- You own foreign assets or earn foreign income
- Your agricultural income exceeds ₹5,000
- You’ve deferred tax on ESOPs
⚙️ What’s Next for Taxpayers?
The income tax e-filing portal will soon enable online and offline filing for FY 2024-25. Taxpayers must choose the right ITR form based on their income sources and financial profile.
✅ Remember: Not everyone qualifies for ITR-1 or ITR-4. These forms cater to taxpayers with simpler income structures.
