Income Tax Return Filing AY 2025-26: The process of filing Income Tax Return (ITR) for Assessment Year 2025-26 (FY 2024-25) is expected to start soon. The Income Tax Department had notified the ITR-1 and ITR-4 forms on 29 April. According to experts, the process of ITR filing can start from next week, so that there is no need to extend the deadline of July 31. Let us tell you that the last date for ITRs which do not require audit is July 31.
“The ITR forms are usually notified by February or March, even before the assessment year begins, and the filing process begins in April. However, this time the notification took time as the government has made some changes. Now, ITR filing should begin next week so that there is no need to extend the July 31 deadline,” said an income tax practitioner on condition of anonymity.
The Income Tax Department on April 29 notified ITR-1 and ITR-4 forms for assessment year 2025-26, making it easier for individuals with long-term capital gains tax (LTCG) up to Rs 1.25 lakh from listed equities to file returns.
Major changes in ITR-1 and ITR-4
ITR filing has been made easier for individuals paying tax on Long Term Capital Gains (LTCG). If a person has earned LTCG up to Rs 1.25 lakh from listed shares or equity mutual funds, he can now file returns in ITR-1 or ITR-4 form.
However, this exemption will not be available to those who have:
- There is Short Term Capital Gain (STCG)
- Has LTCG above Rs 1.25 lakh
- LTCG received from sale of immovable property
- or who have any loss carried forward or brought forward
Under section 112A, there will be no tax on LTCG up to ₹1.25 lakh. Above this limit, a tax of 12.5% will have to be paid.
Changes in ITR-4 form as well
ITR-4, which is for taxpayers under the presumptive taxation scheme, also allows reporting of LTCG under section 112A, provided the gain is within the limit of ₹1.25 lakh.
When will ITR filing start?
ITR-1 and ITR-4 forms have been notified, but the official filing facility on the ITR portal is likely to start next week. For salaried taxpayers, filing usually starts when they receive Form 16. This form is mandatory to be issued by companies by June 15, 2025. Therefore, most salaried taxpayers are able to file ITR only after June.
Who can fill ITR-1 form?
- Who is a resident individual
- Whose total income during the financial year does not exceed ₹50 lakh
- Whose income comes from salary/pension, a house property or family pension
- Long Term Capital Gains (LTCG) up to Rs 1.25 lakh under section 112A
- Agricultural income (up to Rs 5,000)
- There should be income from other sources including interest income.
Who can fill ITR-4 form?
- This form can be filed by resident individuals/HUFs/firms (other than LLPs)
- Whose total income is up to ₹ 50 lakh
- Whose income is from business and profession, which is calculated on presumptive basis under section 44AD, 44ADA or 44AE
- Income from salary/pension, one house property, agricultural income (up to Rs 5,000)
- Long Term Capital Gains (LTCG) up to Rs 1.25 lakh under section 112A
- Income from other sources includes interest received on savings account/deposits, interest from income tax refund, family pension and interest received on enhanced compensation.
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