Major Changes in ITR-1 & ITR-4 for AY 2025–26! 📢

Filing your Income Tax Return (ITR) accurately is essential to ensure compliance and avoid penalties. For the Assessment Year 2025–26, the Income Tax Department has introduced some significant updates to ITR-1 (Sahaj) and ITR-4 (Sugam). At Taxla Services, we bring you a quick breakdown of the changes and how they might affect your filing.

✅ 1. LTCG Under Section 112A Now Allowed in ITR-1 and ITR-4

Taxpayers reporting Long-Term Capital Gains (LTCG) on equity shares and mutual funds under Section 112A can now do so in ITR-1 and ITR-4, provided the gains:

  • Do not exceed ₹1 lakh, and

  • Are exempt under specific conditions.

This is a welcome relaxation, especially for salaried taxpayers or small traders who otherwise had to shift to ITR-2 or ITR-3 for such disclosures.

✅ 2. Mandatory Filing of Form 10-IEA

Opting out of the new tax regime?
It is now mandatory to submit Form 10-IEA if a taxpayer wants to switch back to the old tax regime. This applies to individuals and HUFs, and failure to file this form could result in default application of the new regime tax slabs.

✅ 3. Presumptive Income Limits Enhanced (Sec 44AD/ADA)

The government has raised thresholds for declaring income on a presumptive basis:

  • ₹3 crore for businesses (Sec 44AD)

  • ₹75 lakh for professionals (Sec 44ADA)

Condition: Over 95% of receipts must be digital. This incentivizes digital transactions and simplifies tax filing for small businesses and professionals.

✅ 4. Enhanced Reporting for Foreign Retirement Accounts

A new column has been introduced for disclosure of:

  • Foreign retirement benefit accounts (e.g., 401(k) or Superannuation funds held abroad)

This helps align with India's global reporting standards under various international tax treaties.

✅ 5. Mandatory Disclosure of All Indian Bank Accounts

Every Indian bank account held during the year must now be reported in the return. This step is aimed at better tracking of income and preventing tax evasion.

🧾 Who Should Be Aware?

These changes are applicable to:

  • Salaried individuals using ITR-1

  • Small business owners and professionals using ITR-4

  • NRIs with Indian income components

  • Freelancers, consultants, and digital entrepreneurs

💼 Let Taxla Services Help You Stay Updated & Compliant!

With changing rules and increasing complexity, filing taxes can get tricky. But with Taxla Services, you're in safe hands.

We offer:

  • Expert tax filing and advisory

  • Support in Form 10-IEA submission

  • Presumptive tax guidance

  • Assistance with capital gains reporting

📞 Get in Touch:

📲 Call/WhatsApp: +91 9600076134 / 6374812546
📧 Email: auditsiva2@gmail.com
🌐 Website: www.taxlaservices.com
📍 Visit us: 19, SBI Colony 3rd Street, Saligramam, Chennai – 600093

#ITR2025 #TaxUpdates #IncomeTaxIndia #TaxlaServices #ITR1 #ITR4 #PresumptiveTax #Section112A #BestAuditorInTamilnadu #TaxCompliance #IncomeTaxFiling #TaxConsultantChennai #EfilingIndia

🔍 Taxla Services – Your Trusted Partner for Timely & Accurate Tax Filing!



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