ITR-1, ITR-4 forms notified for AY 2025-26; use them to report LTCG from equity up to ₹1.25 lakh

The Central Board of Direct Taxes (CBDT) has notified ITR-1 (Sahaj) and ITR-4. These forms will be applicable for Income Tax Return filing for Financial Year 2024-25, or Assessment Year 2025-26.

This year, ITR-1 and ITR-4 can be used by taxpayers having up to ₹1.25 lakh long-term capital gains from the sale of listed equity shares and equity-oriented mutual funds. However, there are other eligibility conditions for using these forms that you should know.

ITR-1 (Sahaj) eligibility for AY 2025-26

According to the notification, ITR-1 can be used by the following taxpayers:

• Individuals being a resident (other than not ordinarily resident) having total income up to ₹50 lakh and having Income from Salaries, one house property, other sources (interest, etc.), long-term capital gains under section 112A up to ₹1.25 lakh, and agricultural income up to ₹5000.

Earlier, the ITR-2 form was used for filing returns by taxpayers having capital gains from mutual funds and shares.

This form is not applicable for an individual who is either a Director in a company or has invested in unlisted equity shares, or in cases where TDS has been deducted under Section 194N, or if income tax is deferred on ESOP, or has assets (including financial interest in any entity) located outside India.

ITR-4 (Sugam) eligibility for AY 2025-26

ITR-4 can be used by individuals, HUFs, and Firms (other than LLP) being a resident having total income up to ₹50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA, or 44AE, and having long-term capital gains under section 112A up to ₹1.25 lakh.

This form does not apply to an individual who is either a Director in a company or has invested in unlisted equity shares, or if income tax is deferred on ESOP, or has agricultural income more than ₹5000, or has assets (including financial interest in any entity) located outside India.

It is now expected that the other ITR forms will also be notified by CBDT soon.

The due date of ITR filing for AY 2025-26 for non-audit cases is July 31, 2025.

The notification of these forms has come after a long wait, triggering rumours that the ITR filing due date for AY 2025-26 may be extended. However, this is unlikely to happen, especially for salaried taxpayers, as they can file their returns only after June 15.