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ITR-1 Form 2024-25: Major Changes Explained

New ITR-1 form simplifies tax filing for long-term capital gains up to Rs 1.25 lakh.

New ITR-1 Form Notified with Major Changes for FY 2024-25

The Income Tax Department has notified a new ITR-1 form for tax filing purposes for the assessment year 2025-26. The changes aim to simplify the tax filing process for individuals with long-term capital gains up to Rs 1.25 lakh from listed equities.

Key Changes:

  • Simplified Filing: Salaried individuals and those under the presumptive taxation scheme can file ITR-1. This applies if their long-term capital gains are within Rs 1.25 lakh per fiscal year.
  • Tax-Exempt Gains: LTCG up to Rs 1.25 lakh from listed shares and mutual funds remains tax-exempt.
  • Disclosure Requirements: Taxpayers must provide detailed section-wise information for TDS deductions and disclose foreign travel expenses and electricity consumption costs.

Benefits:

  • Reduced Complexity: The new form reduces filing complications for small taxpayers.
  • Greater Compliance: The change is expected to encourage voluntary compliance and make the system more user-friendly.

Filing Deadline:

  • July 31: The submission deadline for individuals and those not requiring account audits remains July 31.

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