Filing your Income Tax Return (ITR) has been streamlined for the financial year 2024–25 (Assessment Year 2025–26). The Income Tax Department has introduced updated forms—ITR-1 (Sahaj), ITR-4 (Sugam), and ITR-5—to make the process more accessible for various taxpayers.

📄 ITR-1 (Sahaj): For Salaried Individuals

Who can file:

• Resident individuals with total income up to ₹50 lakh.

• Income sources include salary/pension, one house property, other sources (like interest), and long-term capital gains (LTCG) up to ₹1.25 lakh under Section 112A.

Key changes:

• Inclusion of LTCG: Now, individuals with LTCG up to ₹1.25 lakh from listed equity shares or equity mutual funds can report it directly in ITR-1, provided there are no capital losses to carry forward or set off.

• Detailed Deductions and TDS: The form now requires specific details for deductions under sections like 80C, 80GG, etc., and a section-wise breakdown of TDS deductions.

📄 ITR-4 (Sugam): For Small Businesses and Professionals

Who can file:

• Resident individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) with total income up to ₹50 lakh.

• Income from business or profession computed under sections 44AD, 44ADA, or 44AE.

• LTCG up to ₹1.25 lakh under Section 112A.

Key changes:

• Simplified Reporting: Enhanced sections for presumptive income schemes, making it easier for small businesses and professionals to file returns.

📄 ITR-5: For Firms and Other Entities

Who should file:

• Firms

• LLPs (Limited Liability Partnerships)

• AOPs (Association of Persons)

• BOIs (Body of Individuals)

• Artificial Juridical Persons

• Local Authorities (excluding those filing ITR-7)

• Estates of deceased or insolvent individuals

Key points:

• Filing Method: Must be filed online through the income tax e-filing portal.

• Verification: Done using a digital signature, Electronic Verification Code (EVC), or by sending a signed ITR-V to the Centralized Processing Center (CPC) in Bengaluru.

• Exemptions: Entities claiming exemption under Sections 11 and 12 (charitable/religious trust) should use ITR-7 instead of ITR-5.

📅 Important Dates

• Filing Start Date: Once the Income Tax Department releases the utility for the new forms.

• Last Date to File: July 31, 2025, for individuals not requiring an audit.

💡 Tips for Taxpayers

• Check Eligibility: Ensure you meet the criteria for using ITR-1, ITR-4, or ITR-5.

• Gather Documents: Collect all necessary documents, including Form 16, interest certificates, investment proofs, and financial statements.

• Use Official Resources: Visit the Income Tax Department's official website for guidance and to access the filing utility once available.

Disclaimer: This article provides a general overview of the recent changes to ITR forms. For personalized advice, consult a tax professional.