The Income Tax Department has rolled out revised ITR forms for the Assessment Year (AY) 2025–26, applicable for Financial Year (FY) 2024–25. These changes primarily affect ITR-1 (Sahaj) and ITR-4 (Sugam), offering wider eligibility, enhanced compliance, and improved filing experience for taxpayers.
This update is a part of the government’s larger initiative to promote transparency, prevent tax evasion, and simplify return filing procedures.
🔍 What’s New in Revised ITR Forms?
Below are the major updates introduced in the revised ITR-1 and ITR-4 forms:
- ✅ LTCG Inclusion in ITR-1:
Taxpayers can now report Long-Term Capital Gains (LTCG) up to ₹1.25 lakh under Section 112A using ITR-1. This widens the scope for small investors who earlier needed to shift to more complex forms. - 🏠 Mandatory HRA Details:
For salaried individuals claiming House Rent Allowance (HRA), the forms now require:- City and state of employment
- Actual HRA received
- Total rent paid
- Basic salary breakup
- 📊 Enhanced Validation Rules:
The new forms include automatic validation checks to flag errors in:- Section 80 deductions
- Income disclosures
- Exemption claims
- Salary breakups and TDS details
- 📥 Utility Release:
Excel-based utilities for ITR-1 and ITR-4 have been released early this year for ease of offline filing.
📊 Comparison Table: Old vs New ITR Forms
| Particulars | Previous Forms | Revised Forms (AY 2025–26) |
|---|---|---|
| LTCG Reporting (Section 112A) | Not allowed in ITR-1 | Permitted up to ₹1.25 lakh in ITR-1 |
| HRA Declaration | Minimal details required | Detailed declaration of rent, salary, and HRA breakup |
| Validation Rules | Basic checks | Enhanced real-time validation of errors |
| Eligible Users | Limited coverage for small investors & salaried | Broader inclusion with simplified rules |
| Offline Utility | Released later in cycle | Early release of Excel/Java utilities |
🧾 Who Should File Using Revised ITR-1 or ITR-4?
| Form | Applicable To |
|---|---|
| ITR-1 | Salaried individuals, pensioners, and income from one house property, other sources (excluding lottery), LTCG up to ₹1.25 lakh |
| ITR-4 | Individuals, HUFs, and Firms (other than LLP) with income from business or profession under presumptive taxation |
🧠 Why These Changes Matter
- Simplified Return Filing
The introduction of capital gains reporting in ITR-1 means that thousands of small investors need not switch to complex ITR-2 or ITR-3. - Error-Free Submissions
With real-time validations, filers are alerted about mismatches, under-reporting, or wrong deductions, leading to fewer defective return notices. - Taxpayer-Friendly Reforms
The enhancements promote accuracy and compliance without complicating the user experience.
📝 Pro Tips for Filing with New ITR Forms
| ✅ Tip | 💡 Benefit |
|---|---|
| Use Excel utility before portal filing | Helps avoid last-minute technical issues |
| Cross-check Form 16 with ITR form data | Reduces mismatches between salary and claimed deductions |
| Declare LTCG even if it’s exempt | Transparent disclosure enhances compliance record |
| Keep HRA proofs ready | New disclosures demand supporting evidence |
📅 Important Dates to Remember
- ITR Filing Start Date: April 1, 2025
- Extended Deadline: September 15, 2025 (for FY 2024–25)
- Revised ITR Filing: Within 3 months from the end of the assessment year
❓ Frequently Asked Questions (FAQs)
Q1. Can I file ITR-1 if I earned LTCG from shares?
✅ Yes, if your LTCG does not exceed ₹1.25 lakh under Section 112A.
Q2. Do I need to file HRA documents now?
📄 No need to upload, but retain proof in case the IT Department asks later.
Q3. Will enhanced validations reject my return?
❌ Not immediately — they will highlight errors, allowing you to fix them before final submission.
🔚 Conclusion
The revised ITR forms for AY 2025–26 represent a positive shift toward greater transparency, simplified processes, and robust compliance mechanisms. If you’re filing ITR this year, it’s crucial to understand the changes in ITR-1 and ITR-4 and adapt accordingly.
With enhanced utilities and detailed guidance embedded in the forms, taxpayers are now better equipped to file accurately, reduce scrutiny, and stay compliant.
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