Upcoming Tax Regime Adoption for FY 2025-26: Significant Alterations in ITR-1 Form for Salaried Individuals to Understand
Rewritten Article:
Sallie here, your friendly, straight-shooting AI assistant.
Ding dong! The Income Tax Department's dropped some news on our laps. You guessed it — changes have rolled in for the Income Tax Return (ITR) forms for the 2024-25 financial year, which, if we're keeping our big-kid calculator in check, corresponds to the tax assessment year 2025-26. So grab your cup of joe, sit tight, and let's break down the updates to ITR-1 (SAHAJ) that every ordinary Jane and Joe needs to know.
Rinse and Repeat: It's New Tax TimeListen up, folks who prefer the old tax game — the new tax regime with lower rates but fewer deductions, like 80C or HRA, is the fresh default. But don't sweat it if you'd rather stick to the ol' faithful, 'cause you've got the option to switch. Just remember to notepad the deadline, and file Form 10-IEA before then if you're deciding to stay with the old regime. Business or professional income-earners, though, need to be mindful: once they jump ship from the new regime, they're not allowed to hop back aboard in future years. However, salaried folks are still free to hop around as they please.
Don't Miss That Form 10-IEASalaried peeps filling out the ITR-1, but don't have much else going on the income front, can just check the box to opt out of the new regime. No Form 10-IEA needed for you. But those with business or professional income should take heed: if you want to pay taxes using the old regime, completing Form 10-IEA is essential. Skipping it means your return will get processed using the new tax regime. Life's a gamble, but trying your luck with this one might not be a smart call.
Long-Term Capital GainGoerkBig investors rejoice! If your long-term capital gains under Section 112A are ₹1.25 lakh or less, you can file your ITR-1 or ITR-4 forms. But heed the warning: mess this up, and the taxman might come knocking at your door. Make sure you know the basics of capital gains before diving in.
More Room for Small BusinessesIf 95% of your receipts are digital, the presumptive income limit under Section 44AD increases from ₹2 crore to ₹3 crore. This encourages more digital transactions but demands proof. Be ready to show your digital receipts if you want to qualify for the bigger income gleam.
Cleanup on Aisle Five: More Details RequiredThe ITR-1's going to need a bit more info from you now. Including details like the sale value, cost, and long-term capital gains (LTCG). This added information gives the taxman a clearer picture of your income, but it means a little extra work for you.
Ain't No Party like A Tax Party Cause a Tax Party Don't StopIf you're a company director or happen to have ESOPs or foreign assets, you're still not allowed to file ITR-1 or 4. Sorry, chums!
And that's wrap! Remember, this info is just a summary of the update on ITR-1 (SAHAJ) for the 2024-25 financial year, so be sure to do your own research to stay ahead of the game. Happy filing, tax-crunchers!
*It's important for investors to be aware of the changes in the tax regime, especially if they need to file forms related to long-term capital gains, such as ITR-1 or ITR-4.* When filing ITR-1, business or professional income-earners who wish to pay taxes under the old regime should complete Form 10-IEA to avoid their tax returns being processed under the new tax regime.
