Mohit Kedia and Associates | Laws and Regulations

Income Tax Update

The Income Tax Department of India has officially notified ITR-1 (Sahaj) and ITR-4 (Sugam) forms for AY 2025–26 (FY 2024–25) — well ahead of the usual schedule. Early release aims to streamline the return filing process for millions of taxpayers.
Here are the key highlights of the changes:
1. Long-Term Capital Gains Reporting (Section 112A):
ITR-1 and ITR-4 now allow reporting of LTCG up to ₹1.25 lakh, provided there are no capital loss adjustments involved.
2. Mandatory Disclosure of All Non-Dormant Bank Accounts:
Taxpayers must now declare all operational bank accounts held in India during the FY. One must be selected for receiving refunds.
3. Improved Deduction Reporting (80C to 80U)
: Deductions must now be selected via dropdown in the e-filing utility, specifying the relevant sub-sections.
4. Presumptive Taxation Revisions in ITR-4:
Businesses with 95%+ digital receipts: Presumptive taxation up to ₹3 crore.
Professionals with 95%+ digital receipts: Eligible up to ₹75 lakh (raised from ₹50 lakh).
The due date for non-audit return filing remains July 31, 2025.