Income Tax Return: Under I-T law, LTCGs of up to Rs 1.25 lakh from the sale of listed shares and mutual funds are exempt from tax. Gains exceeding Rs 1.25 lakh/ annum are subject to 12.5 per cent tax.
New Delhi: Income Tax Return: The government has notified the ITR-1 (Sahaj) and ITR-4 (Sugam) forms for the assessment year 2025-26. The government has made certain changes this year and now individuals with long-term capital gains (LTCG) of up to Rs 1.25 lakh in a fiscal year from listed equities can also file ITR-1. Earlier, such persons were required to file ITR-2.
Under I-T law, LTCG of up to Rs 1.25 lakh from sale of listed shares and mutual funds are exempt from tax. Gains exceeding Rs 1.25 lakh/ annum are subject to 12.5 per cent tax.
Usually, the government notifies ITR forms around February/March i.e. before the end of the fiscal. This time, however, the ITR forms and the filing utility got delayed as revenue department officials were pre-occupied with the new Income Tax Bill, which was introduced in Parliament in February.
What is ITR-1, ITR-2 and ITR-4 Forms?
ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler forms that cater to a large number of small and medium taxpayers.
Sahaj can be filed by a resident individual having annual income up to Rs 50 lakh and who receives income from salary, one house property, other sources (interest) and agricultural income up to Rs 5,000 a year.
Sugam can be filed by individuals, Hindu Undivided Families (HUFs) and firms (other than Limited Liability Partnerships (LLPs)) having total annual income up to Rs 50 lakh and income from business and profession.
ITR-2 is filed by individuals and HUFs not having income from profits and gains in business or profession.
Changes Regarding Deductions Under 80C, 80GG
The government has also made certain changes in the form with regard to deductions claimed under 80C, 80GG and other sections and has provided a drop down menu in the utility for tax filers to select from.
Also, assessees will have to furnish in the ITR section-wise details with regard to TDS deductions.
Once the utility for filing ITR is made available by the I-T department, people can start filing ITR for income earned in 2024-25 fiscal. The last date for filing ITR for individuals and those who do not have to get their accounts audited is July 31.
With PTI inputs
