ITR filing FY 2024-25: New ITR-1 form notified with major changes – here’s what taxpayers should know

ITR filing: For people and people not requiring account audits, the submission deadline stays July 31.

New ITR types for FY 2024-25: The Income Tax Department has issued a brand new ITR-1 and ITR-4 for tax filing functions for the evaluation yr 2025-26, simplifying the method for people with long run capital beneficial properties as much as Rs 1.25 lakh from listed equities.
The types embody modifications relating to deductions beneath sections 80C, 80GG and others, that includes a drop down menu within the utility. Additionally, taxpayers should present detailed part-sensible data for TDS deductions.
Tax filing can begin as soon as the I-T division releases the utility for the 2024-25 fiscal yr. For people and people not requiring account audits, the submission deadline stays July 31.
Typically, ITR types are launched earlier than the fiscal yr ends, round February/March. This yr’s delay in form notification and filing utility occurred as a result of income division officers had been engaged with the brand new Income Tax Bill, introduced to Parliament in February.
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ITR Form 1 Sahaj is accessible for resident people with yearly earnings as much as Rs 50 lakh, receiving revenue via wage, single property possession, further sources (curiosity) and farming income not exceeding Rs 5,000 yearly.

ITR-1 for revenue tax return FY 2024-25:

What does the brand new ITR-1 imply for taxpayers?

According to Samir Kanabar, Tax Partner at EY India, this transfer displays a transparent shift in the direction of enhancing taxpayer providers by permitting particular person taxpayers to file simplified tax return the place they’ve lengthy-time period capital beneficial properties as much as Rs 1.25 lacs.
“Thereby, it removes the burden of navigating more complex forms. The change is expected to encourage greater voluntary compliance, reduce filing-related stress, and make the system more inclusive and user-friendly for small taxpayers. We hope that this is just the beginning towards better compliance and simplification and expect more to come,” he stated.
“Forms ITR-1 and ITR-4 for Assessment Year 2025-26 remain largely consistent with the previous year. Notably, the updated forms bring relief to individuals with long-term capital gains taxable under Section 112A of the Income Tax Act provided these gains do not exceed the threshold of ₹1.25 lakhs, as earlier such taxpayers had to file return in ITR 2/ITR 3, which are more detailed forms. This is a welcome move by the Government and marks a positive step toward improving taxpayer services by allowing individuals within this category to file a simplified return which was not allowed till last year,” says Divya Baweja, Partner, Deloitte India.
Sandeep Jhunjhunwala, Tax Partner at Nangia Andersen LLP acknowledged that beforehand, salaried people with capital beneficial properties revenue wanted to file ITR-2, even when these beneficial properties had been exempt beneath Section 112A’s threshold restrict, necessitating complete disclosures together with capital achieve accrual or receipt data and securities particulars.
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The new ITR-1 form for AY 2025-26 has been modified to incorporate a devoted portion for reporting LTCG revenue that’s tax-exempt inside the limits specified beneath Section 112A, thus decreasing filing problems.
“However, in cases, where the taxpayer earns LTCG under Section 112A in excess of Rs 125,000 or where the taxpayer earns any other LTCG other than that taxable under Section 112A or earns short term capital gains or has carried forward or brought forward capital losses or derived income from any combination of the above, the salaried individual would have to resort to Form ITR-2 for filing return of income,” Jhunjhunwala stated.