ITR Forms 1 and 4 for FY 2024-25 Released: Major Amendments in ITR Form 1, Now Requiring Reporting of Long-Term Capital Gains:

ITR Forms 1 and 4 for FY 2024-25 Released: Major Amendments in ITR Form 1, Now Requiring Reporting of Long-Term Capital Gains The Central Board of Direct Taxes (CBDT) has formally launched ITR Form 1 and Form 4 for the 2024-25 financial year, which refers to income from April 1, 2024, through March 31, 2025. They will be employed to submit tax returns for Assessment Year 2025-26. Key Update: This year, there has been a big modification in ITR Form 1. Previously, it was not possible to report capital gains using it. But now, if you possess long-term capital gains (LTCG) arising on sale of listed equity shares or equity mutual fund units, and the gain is below Rs. 1.25 lakh under Section 112A, you may use ITR-1.  

Who Can File ITR-1?

• Individuals who are residents (but not "not ordinarily residents")
• Total income up to Rs. 50 lakh
• Income from salary, one house property, and other sources (like interest)
• LTCG under Section 112A up to Rs. 1.25 lakh
• Agricultural income up to Rs. 5,000

Who Cannot Use ITR-1?

• If you have capital gains from house sales or short-term capital gains from equity
• If you're a company director or have unlisted shares
• If tax has been deferred on ESOPs
• If TDS is deducted under Section 194N
• If you own foreign assets

Who Can File ITR-4?

The following individuals are eligible to file ITR-4?

• Residents (individuals, HUFs, and firms other than LLPs)
• Income up to Rs. 50 lakh
• Business/professional income under Sections 44AD, 44ADA, or 44AE
• LTCG under Section 112A up to Rs. 1.25 lakh

Who Cannot Use ITR-4?

• Company directors
• Investors in unlisted shares
• Those with deferred tax on ESOPs
• Agricultural income over Rs. 5,000
• Owners of foreign assets

Other ITR forms and the corresponding filing utilities are expected to be released soon.