Income taxpayer note! Check the notification by CBDT for the new ITR-1, ITR-4 form fY 2024-25
The Central Board of Direct Tax (CBDT) has officially notified the Income Tax Return (ITR) Form 1 and 4 for the financial year 2024-25. These forms will be used for reporting income earned between 1 April 2024 and 31 March 2025, which is for the year 2025-26.The government is expected to release other ITR forms soon.
This year a major updated ITR -1 form consists of long -term capital gains from equity shares and equity mutual funds listed in the form. So far, taxpayers with any capital gains had to use ITR -2. With this change, under Section 112A, salaried persons with basic capital gains have a profit of up to Rs 1.25 lakh who can now file their returns using ITR-1.
Who can use ITR-1?
ITR-1 means for residents with total income, which is for other sources such as up to Rs 50 lakh, salary from salary, property and interest of a house. It also includes agricultural income up to Rs 5,000.
The ITR-1 form cannot be used for capital gains from the sale of house property or short-term capital gains from listed equity shares and equity mutual funds.
Similarly, it cannot be used by individuals who are the directors of a company, invested in unrestaded equity shares, cutting TDS under Section 194N, has postponed income tax on ESOP, or own property (including financial interests in any unit) outside India.
Who can file ITR-4?
ITR-4 form for the financial year 2024-25 (evaluation year 2025-26) is available for individuals, Hindu undivided families (HUFS), and firms (except LLP) who are residents of India.
To be eligible, their total income should not exceed Rs 50 lakh. They should also have income from business or profession, which are calculated under 44AD, 44ADA or 44AE of the Income Tax Act.
Additionally, if they have long -term capital benefits from the sale of equity shares or equity mutual funds, which up to Rs 1.25 lakhs under Section 112A, they can use the form to register their tax returns.
However, ITR-4 cannot be used by individuals who are directors in a company, they have invested in unrestaded equity shares, or have postponed income tax on ESOPs. Additionally, people with more agricultural income more than Rs 5,000 or property (including financial interest in any unit) located outside India are not eligible to file using ITR -4.
