Overview

• The Central Board of Direct Taxes (CBDT) has officially notified the updated ITR-1 (Sahaj) and ITR-4 (Sugam) forms for the assessment year 2025-26, covering incomes up to ₹50 lakh.
• ITR-1 now allows reporting of long-term capital gains (LTCG) up to ₹1.25 lakh under section 112A, simplifying the process for salaried individuals and small investors.
• Taxpayers using presumptive taxation can benefit from increased turnover thresholds of ₹3 crore for businesses and ₹75 lakh for professionals, provided 95% of receipts are digital.
• New compliance features include mandatory reporting of all active bank accounts, section-wise TDS details, and drop-down menus for deductions under sections 80C to 80U.
• Taxpayers opting out of the new tax regime must confirm or reverse their choice, with first-time opt-outs required to submit Form 10-IEA details.