New Delhi: The Central Board of Direct Taxes (CBDT) recently 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.
CBDT has announced several changes in the ITR forms this including that in ITR-1 (SAHAJ) and ITR-4. Here are 6 Changes regarding ITR-1 (SAHAJ) that salaried individuals should know.
1. New Tax Regime is Now Default
The new regime with lower tax rates but no common deductions like 80C or HRA is now the default.
If you want to stick with the old regime (which allows deductions), you must file Form 10-IEA before the due date.
Individuals with Business or professional income, once they opt back into the new regime after opting out, they can’t switch again to the old regime in future years. However, no such restrictions are there for Salaried persons.
2. Form 10-IEA Now Mandatory for Switching
Salaried taxpayers using ITR-1 who do not have income from business or profession can simply tick the “Opting out of new regime” in the ITR form without the need to file Form 10-IEA
Persons with business or professional income filing ITR 4 must submit Form 10-IEA if they wish to pay income tax as per the old tax regime. Missing this step will result in your return being automatically processed under the new tax regime.
3. Long-Term Capital Gains (LTCG) Reporting Allowed in Simple Forms
If your LTCG under Section 112A is ₹1.25 lakh or less, you can now use ITR-1 or ITR-4.
This is helpful for small investors, but you need to know basic capital gains rules.
4. Higher Turnover Limit for Small Businesses (ITR-4)
If 95% of your receipts are digital, the presumptive income limit under Section 44AD increases from ₹2 crore to ₹3 crore.
Promotes digital payments but requires proof of digital transactions.
5. More Capital Gain Details Needed
New fields like Sale Value, Cost, and LTCG are added for better clarity.
Useful for better tracking, but a bit more effort required to fill.
6. Who Can Use ITR-1/4 Remains Same
If you are a company director, have ESOPs, or hold foreign assets, you still cannot file ITR-1/4.
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