Income Tax Return Forms Updated: Forms 1 and 4 Released for AY 2025-26
The Income Tax Department has officially released the updated Income Tax Return (ITR) Forms 1 and 4 for the Assessment Year 2025-26. This early notification gives taxpayers more time to understand the forms, collect relevant documents, and file their returns accurately and on time. The move is part of the government’s continued effort to make the tax filing process simpler, more transparent, and more user-friendly.
What Are ITR-1 and ITR-4?
ITR-1 (also known as Sahaj) and ITR-4 (Sugam) are simplified income tax return forms primarily meant for individual taxpayers, Hindu Undivided Families (HUFs), and small businesses.
- ITR-1 is designed for salaried individuals who have income up to ₹50 lakh from salary, one house property, and other sources like interest.
- ITR-4 is for individuals, HUFs, and firms (other than LLPs) with income up to ₹50 lakh from business or profession under the presumptive taxation scheme.
These forms are not meant for individuals with capital gains, foreign income or assets, or those holding shares in unlisted companies.
What’s New This Year?
1. Early Notification
Unlike in previous years where forms were sometimes released close to the filing deadline, this time the government has announced the updated forms much earlier. This gives taxpayers more time to prepare and file accurately.
2. More Pre-Filled Information
The updated forms are expected to come with better pre-filled data. This includes information like salary income, interest from savings accounts, dividend income, and capital gains from mutual funds. Pre-filled data helps reduce errors and makes the process faster and easier.
3. Clarity in Reporting
Some sections have been restructured to make them easier to understand and fill. There’s now clearer reporting for income from digital assets like cryptocurrencies and more detailed fields for exempt income, such as agriculture or pension income.
4. Better Integration with Other Government Databases
The new forms will make better use of data from other government systems like PAN, Aadhaar, and Form 26AS, reducing the need for manual data entry.
Who Should Use These Forms?
Here’s a quick look at who is eligible to use ITR-1 and ITR-4:
ITR-1 (Sahaj) can be used by:
- Residents (not ordinarily resident) with total income up to ₹50 lakh
- Those with income from salary, one house property, and other sources like interest or pension
- Individuals who do not have income from business or profession
ITR-4 (Sugam) can be used by:
- Individuals, HUFs, and firms with total income up to ₹50 lakh
- Those who earn from business or profession under sections 44AD, 44ADA, or 44AE (presumptive taxation scheme)
- Not applicable for individuals with foreign assets or digital asset transactions over certain limits
Why This Matters
Tax filing can often feel overwhelming, especially for individuals who aren’t financially savvy. With these updated forms, the government is trying to make the process less intimidating and more straightforward. Early release of forms means taxpayers have more time to collect documents, verify pre-filled details, and file their returns without last-minute stress.
It also shows the government’s intention to move towards a more digital and data-driven tax system where most of the work is automated and simplified for honest taxpayers.
Final Thoughts
If you’re someone who files using ITR-1 or ITR-4, this is the right time to take note of the changes and start organizing your documents. The deadline to file ITR for AY 2025-26 (for individuals not requiring audit) is July 31, 2025. Filing early not only reduces the stress but also helps avoid errors and penalties.
For the latest updates, instructions, and access to the new forms, visit the official Income Tax e-filing portal.
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