I have capital Gain Income: Can I file ITR-1:

LTCG up to Rs. 1.25 lakh? ITR Filing Made Simple in FY 2024-25 Good news for taxpayers who are submitting their income tax returns for 2024-25 on or before July 31, 2025! The Income Tax Department has introduced some useful changes in ITR-1 (Sahaj), making tax filing easier for most individuals.

What's New in ITR-1?

Two significant changes have been made:

• You can now file long-term capital gains (LTCG) from shares of up to Rs 1.25 lakh in ITR-1 - Earlier, if you had some capital gains, you were forced to resort to the more complicated ITR-2 or ITR-3 forms.
• Simpler ordering of tax deductions - A new dropdown menu allows you to precisely define which aspect of a tax section you are claiming deductions under.

When Can You File ITR-1?

You can file ITR-1 when you have:

• Salary income
• One house property (either rented or self-occupied)
• LTCG up to Rs 1.25 lakh (with no carried forward losses)

When You Can't Use ITR-1

You'll still have to use ITR-2 or ITR-3 if:

• Your LTCG is more than Rs 1.25 lakh
• You have short-term capital gains
• You need to claim the Section 54 exemption for selling a house
• You have other sources of income not included in ITR-1

Should You Report Self-Occupied House Details?

It is advisable to include the details of your self-occupied property in your tax return, even if you are availing of the new tax regime, which has fewer deductions. This will help avoid any future problems with the tax authorities. Simpler ITR-1 form takes time and effort off the hands of many taxpayers, particularly those who are now under the new tax regime and have sparse capital gains.