ITR-1 & ITR-4 Forms Notified for AY 2025-26: Who Should File Which Income Tax Return?

 ITR-1 & ITR-4 Forms Notified for AY 2025-26: Who Should File Which Income Tax Return?

The Central Board of Direct Taxes (CBDT) has officially notified Income Tax Return (ITR) Forms 1 and 4 for the Assessment Year (AY) 2025-26, marking a proactive step to streamline the tax filing process for individuals and small businesses. These forms cater to taxpayers with an annual income of up to ₹50 lakh and are designed to simplify compliance and enhance early filing opportunities.

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📄 Overview of ITR-1 (Sahaj) and ITR-4 (Sugam)

✅ ITR-1 (Sahaj)

Eligibility:

• Resident individuals with total income up to ₹50 lakh and 
• Income sources include:
• Salary or pension.
• One house property.
• Other sources (e.g., interest).
• Agricultural income up to ₹5,000. 

Exclusions:

• Individuals with capital gains, income from business or profession, or more than one house property. (Which ITR Should I File? Types of ITR Forms for FY 2024-25 (AY 2025-26))

✅ ITR-4 (Sugam)

Eligibility:

• Resident individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships) with total income up to ₹50 lakh.
• Income from business or profession computed under the presumptive taxation scheme as per Sections 44AD, 44ADA, or 44AE. (Income Tax Department notifies ITR forms 1, 4 for assessment year 2025)

Exclusions:

•  Taxpayers with income from more than one house property, capital gains, or foreign assets. (Which ITR Should I File? Types of ITR Forms for FY 2024-25 (AY 2025-26))

🆕 Key Updates for AY 2025-26

• Early Notification: The CBDT has notified the forms in December, earlier than the usual timeline, to facilitate early filing and better preparedness among taxpayers
• Tax Regime Selection:
• ITR-1 filers can indicate their choice between the old and new tax regimes directly within the form.
• ITR-4 filers opting out of the new tax regime must submit Form 10-IEA. (Choosing between old and new tax regime Which one should you opt for in 2025 26) 
• Section 80CCH Deduction: Both forms now include a field to report deductions under Section 80CCH, related to contributions to the Agniveer Corpus Fund.

🔍 Choosing Between Old and New Tax Regimes

Taxpayers must decide between the old and new tax regimes based on their income structure and eligible deductions:

• Old Regime: Offers over 70 exemptions and deductions, beneficial for those with significant investments and expenses eligible for tax benefits.
• New Regime: Provides concessional tax rates with fewer deductions, suitable for individuals seeking a simplified tax structure.

📝 Required Documents for Filing

While filing ITR-1 or ITR-4, ensure you have the following documents:

• Form 16 issued by the employer.
• Annual Information Statement (AIS).
• Interest certificates from banks and post offices.
• Investment proofs for deductions (e.g., LIC, PPF, NSC).
• Details of bank accounts and IFSC codes.

📅 Important Deadlines

• Filing Start Date: With the early notification, taxpayers can begin filing their returns for AY 2025-26 earlier than usual.
• Due Date: The standard due date for filing ITRs for individuals (not subject to audit) is July 31, 2025.

📌 Conclusion

The early release of ITR Forms 1 and 4 for AY 2025-26 underscores the CBDT's commitment to facilitating a smoother tax filing experience. Taxpayers should assess their income sources and choose the appropriate form and tax regime to optimize their tax liability and ensure compliance.

For personalized assistance or to file your return, consider consulting a tax professional or using authorized e-filing portals.

More Read : ITR Filing: वे 5 ज़रूरी बातें जो Salaried Taxpayer को याद रखनी