When Will ITR Filing 2025 Start? Know Latest Changes In ITR-1, ITR-4 Forms
Income Tax Return Filing AY 2025-26: As the income tax department has notified the ITR-1 and ITR-4 forms, the ITR filing is expected to start next week, according to experts.
Income Tax Return Filing AY 2025-26: Even as the income tax department has notified ITR-1 and ITR-4 forms for the assessment year 2025-26 (financial year 2024-25), the income tax return filing is expected to start next week, according to experts. They said the ITR filing needs to start now in order to meet the July 31 deadline.
July 31 is the deadline for ITRs that do not require an audit.
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“Usually, the ITR forms are notified before the assessment year starts, by February/March, and the ITR filing starts in April. However, this time, the notification took time as the government has made some changes. Now, the ITR filing should start next week so that there is no need to extend the July 31 deadline," an income tax practitioner, who did not want to be named, said.
The filing of ITRs usually kicks off in April.
On April 29, the income tax department notified ITR-1 and ITR-4 forms for AY 2025-26, and made it easier for individuals with long-term capital gains (LTCG) of up to Rs 1.25 lakh from listed equities to file returns.
According to the notification, taxpayers with LTCG on listed securities (Section 112A) within the threshold limit of Rs 1.25 lakh can file ITR-1. However, it is not applicable on short-term capital gains, LTCG from immovable properties, or LTCG under Section 112A beyond exemption limit of Rs 1.25 lakh.
ITR-1 also does not apply to those also who have any brought forward loss or loss to be carried forward, according to the notification.
Section 112A provides for LTCG tax on the sale of listed equity shares, equity-oriented mutual funds and business trust. For the financial year 2024-25, the LTCG tax rate is 12.5 per cent. However, LTCG up to Rs 1.25 lakh is exempt.
According to the latest government notification, a similar change has been made to form ITR-4 which applies to taxpayers resorting to presumptive taxation for their business income. The new ITR-4 form for AY 2025-26 also subsumes reporting of LTCG subject to tax under Section 112A of the IT Act within the limit of Rs 1.25 lakh.
It is important to note that though the ITR filing is expected to start next week, most salaried individuals can actually begin filing a little later — usually after they receive their Form 16.
Form 16 is a critical document for salaried taxpayers. It is issued by employers and provides a detailed summary of the salary paid and the tax deducted at source (TDS) during the financial year. As per the income tax rules, employers must issue Form 16 by June 15, 2025.
ITR-1 Vs ITR-4
According to the notified forms, ITR-1 can be filed by a resident individual whose:
- Total income does not exceed Rs 50 lakh during the FY.
- Income is from salary, one house property, family pension income
- Long-term capital gains up to Rs 1.25 lakh under Section 112A.
- Agricultural income (up to Rs 5,000)
- Other sources, including interest income.
ITR-4 can be filed by a Resident Individual / HUF / Firm (other than LLP) who has:
- Income not exceeding Rs 50 Lakh during the FY
- Income from Business and Profession which is computed on a presumptive basis u/s 44AD, 44ADA or 44AE
- Income from Salary/Pension, one House Property, Agricultural Income (up to Rs 5,000)
- Long-term capital gains up to Rs 1.25 lakh under Section 112A.
- Other sources include (excluding winning from Lottery and Income from Race Horses):-Interest from Savings Account-Interest from Deposit (Bank / Post Office / Cooperative Society)-Interest from Income Tax Refund-Family Pension-Interest received on enhanced compensation-Any other Interest Income (e.g., Interest Income from an unsecured loan).
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