Latest news with #ITR1
Economic Times
4 days ago
- Business
- Economic Times
ITR filing 2025: Excel utilities for ITR 1 and 4 for FY 2024-25 (AY 2025-26) released by Income Tax dept; Check who can file
— IncomeTaxIndia (@IncomeTaxIndia) Choose right income tax return form for ITR filing FY 2024-25 (AY 2025-26) Live Events Who is eligible to file ITR 1 for FY 2024-25 (AY 2025-26)? Who cannot use ITR 1 to file income tax return for FY 2024-25 (AY 2025-26)? Who is eligible to file ITR 4 for FY 2024-25 (AY 2025-26)? How to file ITR Excel utilities forms Steps to download ITR-1 and ITR-4 for FY 2024-25 (AY 2025-26) The Income Tax Department has released the Excel utility versions of Income Tax Return (ITR) Forms 1 and 4 for the Assessment Year 2025–26. These tools are now available for download on the official income tax e-filing portal , allowing eligible taxpayers to start preparation for filing of income tax returns for FY 2024-25 (AY 2025-26).The Income Tax Department has announced the release of excel utilities via a post on X (formerly Twitter). 'Attention taxpayers! The Excel Utility for ITR-1 and ITR-4 for AY 2025-26 has been enabled and is now available for taxpayers,' the Income Tax Department said on Singla, Partner at SBHS & Associates, says, 'It's a big relief to see that the Excel Utilities for ITR-1 and ITR-4 for Assessment Year 2025–26 have been released by the Income Tax Department. I have already filed ITR-4 using Excel Utility, and I am happy to share that the process was smooth - there are no major changes in the ITR-4 schema compared to last year, which makes it even easier for regular filers and tax professionals. However, a very important change has been made in the schema for ITR-1. A new validation rule has been introduced in the utility itself: if certain TDS section codes appear in Schedule TDS2 or TDS3—such as 194B, 194BB, 194S, 194LA, 195, 196A, 194Q, 194R and others—the income tax return will now be considered invalid for filing under ITR-1. This means taxpayers having income under special rates or from sources like online games, lotteries, crypto, property transfers, must use ITR-2 or other appropriate is a very welcome and practical change. In past years, many taxpayers unknowingly filed ITR-1 with such incomes, only to face defective return notices from CPC. By building this validation directly into the utility, the Department has helped prevent incorrect filings at source, saving both time and confusion.'Also read: When will salaried employees get Form 16 to file income tax return for FY 2024-25 (AY 2025-26)? Taxpayers are advised to carefully check the eligibility criteria before selecting and filing their income tax return FY 2024-25 (AY 2025-26). Choosing the incorrect form may lead to complications or rejection of the ITR by the Income Tax Department. Tax experts recommend thorough reading of the instructions to avoid errors in ITR the financial year 2024–25 (assessment year 2025–26), resident individuals (excluding those classified as not ordinarily resident) with a total income of up to Rs 50 lakh — including income from salary, one house property, other sources such as interest, long-term capital gains under Section 112A up to Rs 1.25 lakh, and agricultural income not exceeding Rs 5,000 — are eligible to file cannot be used taxpayers who are either Director in a company or have invested in unlisted equity shares or in cases where TDS has been deducted u/s 194N or if income-tax is deferred on ESOP or has assets (including financial interest in any entity) located outside individuals, Hindu Undivided Families (HUFs) and Firms (other than LLP) being a resident having total income up to 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 up to Rs 1.25 lakh for FY 2024-25 (AY 2025-26).These ITR forms are editable forms that can be downloaded from the income tax website. Individuals can download these forms, fill them up and upload them back onto the e-filing income tax website. These forms are available in Excel and JSON (JavaScript Object Notation) Excel utility forms for ITR 1 and 4 are editable tools that can be downloaded, filled offline, and uploaded on the income tax e-filing website. Here are some steps you can follow to download forms ITR-1 and ITR-4Step 1: Visit the Income Tax e-filing portalStep 2: Download the applicable ITR form (Excel version)Step 3: Fill in the details as per your income profileStep 4: Validate the form and generate the XML or JSON fileStep 5: Upload it on the portal to complete the filing processWith the release of these utilities, it's time for eligible taxpayers to begin gathering their financial documents and start filing their returns well before the due date of September 15, 2025 for FY 2024-25 (AY 2025-26).
Economic Times
15-05-2025
- Business
- Economic Times
9 changes in ITR-1, ITR-2, ITR-3, ITR-4 you need to know for FY 2024-25 (AY 2025-26) income tax return filing
The Income Tax Department has notified the income tax return forms for FY 2024-25 (AY 2025-26), incorporating the changes in tax laws announced in the July 2024 budget. However, taxpayers will have to wait for the release of the ITR filing e-utilities on the income tax portal to file their ITR. ET Wealth Online explains the nine changes made in this year's ITR forms that will make your ITR filing process easier for FY 2024-25 (AY 2025-26). Changes in ITR forms for FY 2024-25 (AY 2025-26) 1. Expansion of eligibility to file ITR 1 and ITR 4: This year, the Income Tax Department has expanded the eligibility by relaxing the eligibility criteria, making more taxpayers eligible to file their tax return using ITR 1 and ITR 4. The new rules allow even taxpayers with long-term capital gains from equity and equity mutual funds to file a tax return using ITR1 and ITR 4 (as applicable), provided the capital gains do not exceed Rs 1.25 lakh. Naveen Wadhwa, Vice-President of Research and Advisory at Taxmann, says, "The Budget 2024 increased the LTCG exemption limit on listed equity and equity mutual funds from Rs 1 lakh to Rs 1.25 lakh. In previous years' ITR forms, even if a taxpayer's LTCG under Section 112A was within the exemption limit and there was no tax payable, the presence of capital gains income made them ineligible to file the simpler ITR-1 forms. Instead, they were required to file the return in ITR-2 or ITR-3 forms, which are more complex and time-consuming. This resulted in a genuine hardship for small taxpayers. To address this, the Central Board of Direct Taxes (CBDT) has notified that taxpayers are eligible for filing ITR-1 and ITR 4, even if they have LTCG under Section 112A, provided the total LTCG does not exceed Rs 1.25 lakh and there is no brought forward or carry forward capital loss. This move eases the compliance burden and simplifies return filing for small taxpayers with limited capital gains with no losses to be brought forward." ITR1 and ITR 4 notified by the tax department: Check the major changes here 2. Aadhaar enrolment ID not acceptable: One of the quiet changes made in Budget 2024 was removal of the acceptance of the Aadhaar enrolment ID for the PAN application, and also at the time of filing the ITR. Post this amendment, PAN applications and ITRs can no longer be filed using Aadhaar enrolment ID instead of the actual Aadhaar number. This year's income tax return forms (ITR 1, ITR 2, ITR 3 and ITR 5) have been amended to remove the column to enter the Aadhaar enrolment ID. Wadhwa says, "The ITR forms for FY 2024-25 (AY 2025-26) do not have the Aadhaar Enrolment ID column this year. If the taxpayers do not have an Aadhaar number, then they will not be able to file ITR this year." 3. Opting out of new tax regime by small business owners: Taxpayers having business income cannot switch/choose tax regimes every financial year, unlike individuals who don't have business income. As per the income tax rules, taxpayers having business income have once in a lifetime option to switch from the old to the new tax regime. However, this switching requires submission of a form to the tax department. Wadhwa says, "The previous year ITR-4 simply asked whether the taxpayer had opted out of the new tax regime. If yes, then the taxpayer was required to provide the date and acknowledgement number of Form 10-IEA if applicable. However, the ITR-4 for FY 2024-25 (AY 2025-26) has introduced a more detailed disclosure. It now seeks confirmation of past filings of Form 10-IEA and asks whether the taxpayer wants to continue opting out of the new Tax Regime in the current year." 4. Mention TDS section in ITR form: This year's income tax return forms (ITR 1, ITR 2, ITR 3 and ITR 5) require taxpayers to mention the TDS section under which tax was deducted from the income earned in FY 2024-25. Wadhwa says, "The requirement to mention the TDS section in the ITR form is applicable if tax is deducted on income other than salary. Earlier, there was no requirement to mention the TDS section in the ITR form while claiming the tax credit. However, from this year, a taxpayer must mention the section under which the benefit of TDS credit is being taken." 5. New capital gains rules incorporated in ITR forms: Budget 2024 announced new capital gains rules, effective July 23, 2024. Hence, if you have made capital gains by selling listed or unlisted shares, equity mutual funds, houses, land, or any other capital asset, then the date of sale is important to calculate the correct capital gains amount and the appropriate tax on it. Wadhwa says, "Taxpayers should check the date of sale and transfer of the capital asset to know whether the tax will be calculated based on the old rules or new rules. If the transfer date is before July 23, 2024, the old tax provisions will continue to apply, including the 15% tax rate on STCG covered under Section 111A, the 20% tax rate on LTCG covered under Section 112 with indexation benefit, and the 10% tax rate on LTCG under Section 112A. However, if the transfer occurs on or after 23rd July 2024, new tax provisions will apply. The ITR form requires a disclosure of the date of transfer, separate reporting for transfers made before and on or after 23rd July 2024, and the proper application of revised tax rates and indexation rules."If you have capital gains, then income from them will be reported in ITR 2, ITR 3 and ITR 5, as applicable. 6. Separate reporting for capital gains from unlisted bonds and debentures: Budget 2024 changed the taxation rules for unlisted bonds and debentures. The new rules are effective July 23, 2024. Wadhwa says, "According to the new rules, if unlisted debentures or bonds were issued on or before July 22, 2024, but redeemed, matured, or transferred on or after 23rd July 2024, the entire gain will be taxed as short-term capital gains, regardless of the holding period. As per the new rules, the gains will be taxed at the income tax slab rates applicable to your income. However, if the maturity, redemption or transfer occurs before July 23, 2024, the resulting gain will be classified as long-term and taxable according to the old provision. Under the old rules, the capital gains will be taxed at 20% with indexation benefit."The reporting of capital gains from unlisted bonds and debentures has to be done in ITR-2, ITR-3 or ITR-5, as applicable. 7. Reporting of buy-back proceeds as deemed dividends: From October 1, 2024, the amount received on the buy-back of shares by domestic listed companies will be considered as deemed dividends in the hands of shareholders. The new rule was announced in Budget 2024. Wadhwa says, "ITR-2, 3 and 5 have been amended so that shareholders can report the buy-back proceeds as dividend income under the section 'Income from other sources'. Under the capital gains schedule, the taxpayers will be required to report zero as sale proceeds so that the cost of acquiring shares results in a capital loss. This capital loss can be brought forward and set off against other long-term capital gains for the next eight assessment years." 8. Providing disability certificates for deduction under Section 80DD and 80U: Under the old tax regime, a taxpayer could claim a deduction under Section 80DD or Section 80U for expenditure made for disabled individuals. This year, a taxpayer claiming any of the deduction is required to provide acknowledgement number of the disability certificate as well. Wadhwa says, "Till previous years, a taxpayer could claim a deduction under Section 80DD or Section 80U by quoting the Form 10-IA as per income tax rules. However, from this year, taxpayer is also required to provide acknowledgement number of disability certificates along with Form 10-IA to claim deduction."Section 80DD can be claimed by a resident individual or HUF who incurs medical expenditure or pays an insurance premium for the care of a dependent family member with a disability or severe deduction under Section 80U is available to a resident individual who is himself suffering from a disability or severe says, "This reporting requirement is applicable only if ITR-2 and ITR-3 is filed. There is no reporting requirement if the taxpayer files ITR-1." 9. Asset reporting applicable if total income exceeds Rs 1 crore: There is good news for taxpayers having income above Rs 50 lakh. From this year, a taxpayer is required to report their assets and liabilities only if the gross total income exceeds Rs 1 crore. Wadhwa says, "Earlier, a taxpayer was required to report their assets and liabilities if their gross total income exceeded Rs 50 lakh in a financial year. However, from this year, the reporting in Schedule AL will be mandatory only if gross total income exceeds Rs 1 crore."The reporting in Schedule AL can be done in the ITR 2 and ITR 3.
India.com
01-05-2025
- Business
- India.com
ITR-1, ITR-4 Forms For AY 2025-26 Notified: 9 Major Changes Income Tax Filers Should Know
photoDetails english 2893761 Updated:May 01, 2025, 08:56 AM IST ITR-1, ITR-4 Forms For AY 2025-26 Notified 1 / 10 The Central Board of Direct Taxes (CBDT) has notified the income tax return forms ITR-1 and ITR-4 for the financial year 2024-25 and the assessment year 2025-26. The returns for incomes earned during the financial year from April 1, 2024, to March 31, 2025, have to be filed using the new forms. Here are 9 Major Changes Income Tax Filers Should Know ITR-1 (SAHAJ) Form Change 2 / 10 A major change in the ITR forms this year is that ITR-1 (SAHAJ) can be filed for notifying long-term capital gains (LTCG) under section 112A. This is subject to the condition that the LTCG is not more than Rs 1.25 lakh, and the income tax assessee has no loss to carry forward or set off under the capital gains head. ITR 1 3 / 10 Earlier, ITR 1 did not have a provision to report capital gains tax. This year, taxpayers who have long-term capital gains from the sale of listed equity shares and equity-oriented mutual funds can use ITR-1 to file their tax returns. ITR-1 Can't Be Filed By Taxpayers IF 4 / 10 However, ITR-1 forms cannot be filed in cases of taxpayers who have capital gains from the sale of house property or short-term capital gains from listed equity and equity mutual funds. New Income Tax Regime 5 / 10 The notification also stipulates that in cases where income tax assesses have opted out of the new income tax regime in AY 2024–25, they must declare and opt to either continue or reverse the selection. New income tax selection for 1st Time 6 / 10 Those who have opted out of the new income tax regime for the first time in AY 2025–26 must furnish Form 10-IEA acknowledgement details. Additionally, there must also be a clarification for the late filing of Form 10-IEA. Deductions In ITR-1 & ITR-4 7 / 10 In both ITR-1 & ITR-4 forms, all deductions ranging from 80C to 80U must be chosen from a drop-down in the e-filing facility, and the exact clauses and sub-sections must be revealed. Income from retirement A/C 8 / 10 Income from retirement accounts maintained abroad -- falling under section 89A -- will now have improved fields and a relief tracking feature. ITR-4 section 44AD 9 / 10 In ITR-4 section 44AD (business), if digital transactions make up to 95 per cent of the business' transactions, then the turnover threshold has now been changed to Rs 3 crore. In Section 44ADA (professionals): Under the same digital receipts condition, the limit has now been increased to Rs 75 lakh. ITR 1, ITR 4 forms Bank Account Details 10 / 10 All bank accounts, being held in India during the previous year, barring the dormant ones, will now have to be compulsorily reported in the ITR 1 and ITR 4 forms.
New Indian Express
01-05-2025
- Business
- New Indian Express
Tax filing made easier for the salaried class
NEW DELHI: Good news for salaried tax payers! The government has made tax filing easier for those earning up to Rs 1.25 lakh through long-term capital gains from equities or equity mutual funds. Earlier, salaried individuals with income from capital gains were required to file Form ITR-2 even where the capital gains were non-taxable. From this year, the new Form ITR-1 has a small section for reporting long-term capital gains on which tax is not payable. Currently, ITR 1 is filed by individuals with income up to Rs 50 lakh from salary, one house property, interest and agriculture income. However, if they made capital gains in a particular year, they had to file ITR-2. To ease the compliance burden, the tax department has exempted salaried individuals with long-term capital gains up to Rs 1.25 lakh annually from filing ITR 2 form. It must be noted that the government enhanced the threshold for tax-free long-term capital gains from Rs 1 lakh to Rs 1.25 lakh in the Budget this year. However, the tax rate on long-term capital gains has been increased from 10% to 12.5%. 'This change streamlines the tax filing process, making it more accessible and less burdensome for small investors and salaried individuals, encouraging timely compliance,' says Sandeep Sehgal, partner, tax, AKM Global. However, if a taxpayer earns long-term capital gains in excess of Rs 1,25,000 or any other long term capital gains other than equities or units of business trust or earns short-term capital gains or has carried forward or brought forward capital losses or derived income, the salaried individual would have to fill Form ITR-2 for filing return of income. There is a similar change in the ITR-4, which applies to tax payers resorting to presumptive taxation for their business income.
India.com
30-04-2025
- Business
- India.com
ITR-1, ITR-4 Forms For AY 2025-26 Notified By Income Tax Dept
New Delhi: The Central Board of Direct Taxes (CBDT) has notified the income tax return forms ITR-1 and ITR-4 for the financial year 2024-25 and the assessment year 2025-26. The returns for incomes earned during the financial year from April 1, 2024, to March 31, 2025, have to be filed using the new forms. A major change in the ITR forms this year is that ITR-1 (SAHAJ) can be filed for notifying long-term capital gains (LTCG) under section 112A. This is subject to the condition that the LTCG is not more than Rs 1.25 lakh, and the income tax assessee has no loss to carry forward or set off under the capital gains head. Earlier, ITR 1 did not have a provision to report capital gains tax. This year, taxpayers who have long-term capital gains from the sale of listed equity shares and equity-oriented mutual funds can use ITR-1 to file their tax returns. However, ITR-1 forms cannot be filed in cases of taxpayers who have capital gains from the sale of house property or short-term capital gains from listed equity and equity mutual funds. The notification also stipulates that in cases where income tax assesses have opted out of the new income tax regime in AY 2024–25, they must declare and opt to either continue or reverse the selection. Those who have opted out of the new income tax regime for the first time in AY 2025–26 must furnish Form 10-IEA acknowledgement details. Additionally, there must also be a clarification for the late filing of Form 10-IEA. In both ITR-1 & ITR-4 forms, all deductions ranging from 80C to 80U must be chosen from a drop-down in the e-filing facility, and the exact clauses and sub-sections must be revealed. Income from retirement accounts maintained abroad -- falling under section 89A -- will now have improved fields and a relief tracking feature. In ITR-4 section 44AD (business), if digital transactions make up to 95 per cent of the business' transactions, then the turnover threshold has now been changed to Rs 3 crore. In Section 44ADA (professionals): Under the same digital receipts condition, the limit has now been increased to Rs 75 lakh. All bank accounts, being held in India during the previous year, barring the dormant ones, will now have to be compulsorily reported in the ITR 1 and ITR 4 forms.
