This update comes shortly after the release of excel utilities for the same forms last week. The department aims to simplify the filing process and reduce errors by pre-populating key details.
The last date to file income tax returns for AY 2025–26 has been extended to September 15, 2025, from the usual July 31 deadline. The extension was granted to accommodate major changes in ITR forms, portal upgrades, and to ease the burden on taxpayers and professionals during peak filing season.
Taxpayers should select the correct ITR form based on their income type and financial profile.
The revised ITR-1 now allows taxpayers with long-term capital gains (LTCG) up to ₹1.25 lakh under Section 112A to file using this simplified form. This change, introduced in April, aims to ease filing for small investors. Previously, such taxpayers had to use ITR-2.
Who can use ITR-1 (Sahaj)?
- Individuals with income from salary, one house property, and other sources.
- LTCG up to ₹1.25 lakh under Section 112A, where no tax is payable.
Not allowed if:
- You have short-term capital gains or taxable LTCG.
- You’ve sold property or have losses to carry forward.
Who can use ITR-4?
- Resident individuals, HUFs, and firms (not LLPs).
- Income up to ₹50 lakh.
- Business income under presumptive taxation (Sections 44AD, 44ADA, 44AE).
- LTCG under Section 112A up to ₹1.25 lakh (non-taxable).
Not allowed if:
- You’re a company director.
- You own unlisted shares.
- You have foreign income/assets or high agricultural income.
