Income Tax Return: What's new in the forms and who should pay attention?

The Central Board of Direct Taxes (CBDT) has notified the income tax return forms 1 and 4.

The income earned between April 1, 2024, and March 31, 2025, must be reported to the government using the newly notified forms.

Each form has specific eligibility conditions that a tax payer must satisfy to be eligible for filing their ITR forms.

Earlier ITR-1 didn't have provision to report capital gain tax, which has changed this year.

Who is eligible to file ITR-1?

- For individuals being a resident having total income up to Rs. 50 lakh.

- having income from salaries, one house property, other sources,

- Long-term capital gains under Section 112A up to Rs. 1.25 lakh

- Agricultural income up to Rs 5 thousand

ITR-1 cannot be filed by taxpayers who:

- who is either a director in a company or has invested in unlisted equity shares 

- TDS has been deducted under section 194N

- if income-tax is deferred on ESOP 

- has assets located outside India. 

Who is eligible to file ITR-4?

- For individuals, HUFs and Firms(other than LLP) who are residents having total income upto Rs. 50 lakh and 

- Having income from business and profession which is computed under sections 44AD, 44ADA or 44AE, and

- Having long-term capital gains under section 112A upto Rs. 1.25 lakh

ITR-4 cannot be used by taxpayers who:

- Not for an individual who is either Director in a company or 

- has invested in unlisted equity shares or 

- if income-tax is deferred on ESOP or

- has agricultural income more than Rs. 5000 or

- has assets located outside India

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