Eventually the Central Board of Direct Tax (CBDT) has notified Form 1 and Form 4 of ITR. These forms have been released for FY 2024-25 i.e. Assessment Year 2025-26. After the notification of ITR 1 and ITR-4, it is now being expected that the rest of the form will also be notified soon.
There have been major changes in the new ITR form. Earlier there was no provision to show Capital Gain tax in ITR-1, but now this option has also been given after new changes. If you have a long-term capital gains from the sale of listed equity shares and equity Mutual Funds, then you will be able to use ITR-1 to file tax returns.
Earlier, people with capital gains had to file ITR-2 form. There has been no significant change in ITR-1 form but to include long-term capital gains from equity.
Who can use ITR-1?
According to the Income Tax Deputyment, ITR-1 form can be used by resident residents, salary, a house property, interest with other sources like income, listed equity and mutual funds with long-term capital gains and up to Rs 5,000.
Who will not be able to fill ITR-1?
Despite the provision of short -term capital gains or long -term capital gains of short -term capital gains or long -term capital gains of the sale of house property or the sale of listed equity and equity mutual, you will not be able to use ITR 1 form for returns in some situations. A company is director or has invested in equity shares of an unlied company or TDS has been deducted under section 194an or if tax is postponed on ESOP or if there is any property outside the country, ITR-1 form will not be filled.
Who can fill ITR-4?
Business and profession can fill tax calculations under section 44 AD, 44 ADA or 44AE, income up to Rs 50 lakh, HUF and firm (addition to LLP), ITR-4 form with long term capital gains up to Rs 1.25 lakh under section 112A.