The Income Tax Department of India has officially released ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) for the Assessment Year 2025-26, enabling taxpayers to begin filing their returns for income earned during the Financial Year 2024-25. These forms aim to streamline the return filing process for individuals, Hindu Undivided Families (HUFs), and small businesses with relatively simple income profiles.
Eligibility for ITR Form 1 (Sahaj)
ITR-1 is designed for resident individuals with:
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Total annual income up to ₹50 lakh
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Income from salary or pension
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Income from one house property
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Income from other sources, such as interest
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Agricultural income up to ₹5,000
Additionally, taxpayers with long-term capital gains (LTCG) up to ₹1.25 lakh can now file their returns using ITR-1. Previously, such individuals were required to use ITR-2.
Eligibility for ITR Form 4 (Sugam)
ITR-4 is intended for individuals, HUFs, and firms (excluding LLPs) who have opted for the presumptive taxation scheme under sections 44AD, 44ADA, or 44AE. This form can be used if:
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Total income does not exceed ₹50 lakh
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The taxpayer earns income from business or profession under the presumptive scheme
This form simplifies the filing process for professionals like doctors, lawyers, and freelancers who choose the presumptive taxation route.
Key Changes in AY 2025-26
A major change this year is the inclusion of long-term capital gains (LTCG) up to ₹1.25 lakh under ITR-1, making the form more comprehensive. Both ITR-1 and ITR-4 now feature a more user-friendly design, making the filing process easier for taxpayers.
Other Forms for Complex Incomes
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ITR-2 is required for individuals and HUFs with income from capital gains above ₹1.25 lakh, multiple house properties, or foreign assets.
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ITR-3 is meant for individuals with income from business or profession who are not using the presumptive taxation scheme.
When and How to File?
The filing window for AY 2025-26 is now open. Salaried employees generally file their returns using Form 16, provided by their employer. Returns can be filed online via the Income Tax e-Filing portal. It is recommended to file early to avoid the last-minute rush and any penalties.
