The time to file income tax returns is near. CBDT has notified ITR-1 and ITR-4 forms for the financial year 2024-25. ITR-1 form is for those doing jobs and ITR-4 form is for those doing business.
The time to file income tax returns is now near. There are 7 types of forms for filing ITR. That is, different forms for different categories of taxpayers. Usually two forms are used the most. ITR-1 form and ITR-4 form. They are also known as Sahaj and Sugam. The Central Board of Direct Taxes (CBDT) has notified income tax return forms ITR-1 and ITR-4 for the financial year 2024-25 and assessment year 2025-26. Those doing jobs have to fill ITR-1 form.
According to the Income Tax Act 1961, it is mandatory for all salaried and self-employed persons to file Income Tax Return (ITR). Depending on the type or category of your income, you have to file Income Tax Return by filling the appropriate ITR form on or before the due date. If ITR is filled by choosing the wrong form, it may be invalid. As a result, you will have to file ITR again. Therefore, it is very important to know which ITR form is prescribed for you.
ITR1 or Sahaj Form
ITR-1 form is for those people whose income is less than Rs 50 lakh per year. This income can be from salary or pension. Income can be from other sources. Or income can be from a house property. If there is an income of Rs 5000 from farming, then you can fill this form. A big change in the ITR form this year is that ITR-1 (Sahaj) can be filed to deposit Long Term Capital Gain (LTCG) under section 112A. However, the condition is that LTCG should not exceed Rs 1.25 lakh and the taxpayer should not have any loss to carry forward or set off under the capital gain category. ITR-1 form cannot be used by those taxpayers who have short term capital gain from sale of house property or from listed equity and equity mutual funds.
ITR 4 Form or Sugam
ITR 4 form is also called Sugam. It is for individuals and HUFs, people running partnership firms (not LLP) also fill it. That is, it is for those people whose income comes from profession or business and is covered under the presumptive taxation scheme. The condition is that this income should be up to Rs 50 lakh. Those whose long term capital gain is up to Rs 1.25 lakh under 112A also have to fill this form. If there is income under section 44AD and 44AE of Income Tax, then this form has to be filled. You can fill ITR 4 form if you earn more than Rs 50 lakh from salary or pension. If you are a freelancer and your annual income is more than Rs 50 lakh, you can fill Form 4.
