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.
This move comes shortly after the government extended the ITR filing deadline to September 15, 2025, from the usual July 31. The extension was announced due to recent changes in ITR forms, ongoing technical upgrades to the IT portal, and the need to reconcile TDS data before filing.
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.
The online filing utility is expected to be enabled soon on the Income Tax India portal. Taxpayers should ensure they pick the correct form based on their income sources and financial profile.
