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Modificationsto Tax Regime for AY 2025-26: Key Points for Simplified Income Tax Return Filing for Salaried Individuals

CBD Tax Authority Reveals Alterations in Income Tax Returns, Particularly in Forms ITR-1 (SAHAJ) and ITR-4. Here are six crucial modifications Homeowners with Salary Incomes Should Understand Regarding ITR-1 (SAHAJ).

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Modificationsto Tax Regime for AY 2025-26: Key Points for Simplified Income Tax Return Filing for Salaried Individuals

Head's up! The Central Board of Direct Taxes (CBDT) has just dropped the new income tax return forms for the financial year 2024-25. And here are the 6 changes salaried individuals need to know about the ITR-1 (SAHAJ) form:

  1. Ride the New Tax Regime! You guessed it, the new tax regime is now the default! Say goodbye to common deductions like 80C or HRA, but score lower tax rates! If you want to stick with the old regime, submit Form 10-IEA before the due date. Just a heads up, if you've got business or professional income, once you opt back into the new regime, you're in forever, mate (unless you're a salaried taxpayer, no worries, you can switch it up each year).
  2. Form 10-IEA: Worry Not! For salaried taxpayers using ITR-1 and not having biz or professional income, simply tick the "Opting out of new regime" in the form, no need to file the darn Form 10-IEA. If you're a business or professional taxpayer filing ITR-4 and wish to stick with the old tax regime, don't forget to submit Form 10-IEA or your return will be auto-processed under the new tax regime.
  3. Capital Gains Revolution! If your Long-Term Capital Gains (LTCG) under Section 112A are ₹1.25 lakh or less, you can now use the ITR-1 or ITR-4 forms. This tidbit is a game-changer for small investors! Just remember the basic capital gains rules to stay ahead of the game.
  4. Higher Turnover Limit for Small Businesses (ITR-4)! If 95% of your receipts are digital, the presumptive income limit under Section 44AD rises from ₹2 crore to ₹3 crore, promoting digital payments. But don't forget, you'll need proof of digital transactions to back it up.
  5. More Capital Gain Details Needed! New fields like Sale Value, Cost, and LTCG have been added to ITR-1 and ITR-4 for better tracking. This calls for a bit more effort when filling out the forms.
  6. Eligibility Criteria: Who Can Use ITR-1/4 Remains the Same! If you're a company director, have ESOPs, or hold foreign assets, you still can't file ITR-1 or ITR-4. Keep that in mind, lads and lasses!

So there you have it! Revised tax rules for salaried taxpayers. Buckle up and file your returns with these updates in mind, and remember: stay informed, stay tax-savvy!

  1. For the financial year 2024-25, salaried individuals filing their ITR-1 (SAHAJ) forms should be aware that the new tax regime is now the default, necessitating the filing of Form 10-IEA if they wish to remain in the old tax regime.
  2. From Delhi, it is important to note that if salaried taxpayers using ITR-1 do not have business or professional income, they do not need to submit Form 10-IEA, but they must explicitly opt out of the new tax regime on the ITR-1 form.
  3. In the year 2024, when filing their ITR-1 or ITR-4 forms, small investors should take note of the change that allows capital gains under Section 112A of ₹1.25 lakh or less to be reported on these forms, eliminating the need for a separate capital gains tax form.
Revised ITR-1 (SAHAJ) and ITR-4 forms unveiled by CBDT, introducing modifications; here are the vital updates for salaried individuals regarding ITR-1 (SAHAJ):

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