ITR-1, ITR-4 forms go live: Know what has changed, who can file online

Salaried individuals, small businesses and investors with minor gains can fill up these forms, say experts

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People can file their Income Tax returns (ITR) for assessment year 2025-26 as the Central Board of Direct Taxes (CBDT) has enabled the online filing of ITR-1 and ITR-4 forms on its e-filing portal incometax.gov.in. The website has pre-filled data, aimed at simplifying the return filing process for millions of salaried and small business taxpayers.

 

Who can file ITR-1 and ITR-4?

 

Both ITR forms are designed for individuals with relatively simple income profiles, said Naveen Wadhwa, vice-president of Taxmann.

 

ITR-1 (Sahaj) is for resident individuals (not Hindu Undivided Families, HUF) or firms) having:

 

• Salary or pension income 
• One-house property (no carried-forward losses) 
• Income from other sources (excluding lottery or racehorse winnings) 
• Total income up to Rs 50 lakh 
• Long-term capital gains under Section 112A up to Rs 1.25 lakh (new inclusion)

 

ITR-4 (Sugam) is for resident individuals, HUFs, or firms (other than LLPs) having:

   

• Presumptive income under sections 44AD, 44ADA, or 44AE 
• Total income up to Rs 50 lakh 
• Income from one-house property and other sources 
• Long-term capital gains under Section 112A up to Rs 1.25 lakh, with no capital losses carried forward

 

According to CBDT’s rules, individuals earning capital gains up to Rs 1.25 lakh under Section 112A (from listed equity shares, mutual funds, or business trusts) can now file ITR-1 or ITR-4, provided there is no carried forward loss. This change addresses a long-standing concern among small investors.  Calculate Income Tax: Income Tax Calculator Tool

 

“This amendment will benefit a large number of small taxpayers who earlier had to switch to complex forms like ITR-2 or ITR-3 just because of minor capital gains,” said Wadhwa.

 

Wadhwa explained the changes that taxpayers need to keep in mind this time:

 

Aadhaar Enrolment ID not accepted: From October 1, 2024, only the actual Aadhaar number (not the enrolment ID) can be used for PAN applications and return filing.

 

Capital gains disclosures: If your capital asset was sold after July 23, 2024, new tax rules apply. Taxpayers must now disclose the transfer date, as tax rates and indexation benefits differ based on that.

 

Detailed tax regime disclosure: ITR-4 now requires more specifics on whether the taxpayer wants to opt out of the new tax regime under Section 115BAC.

 

Where to file returns

Taxpayers can log in to www.incometax.gov.in to access the pre-filled ITR-1 and ITR-4 forms and submit them online.

 

With the ITR forms now live, experts suggest early filing to avoid last-minute rush or errors. “Taxpayers should cross-check their prefilled data, especially TDS and bank interest, before submission,” said Wadhwa.

 

For AY 2025–26, the deadline for most individual taxpayers is September 15 (for non-audit taxpayers).