The government has notified the income tax return forms 1 and 4 for the assessment year 2025-26, making it easier for individuals with long-term capital gains of up to ₹1.25 lakh from listed equities to file returns.

The government has also made certain changes in the form for deductions claimed under 80C, 80GG and other sections and has provided a drop-down menu in the utility for tax filers to select from. Assessees will also have to furnish section-wise details with regard to TDS deductions in the ITR.

Once the utility for filing ITR is made available by the IT department, people can start filing returns. Usually, the forms are notified around February/March. This time, however, the ITR forms and the filing utility got delayed as revenue department officials were preoccupied with the new Income Tax Bill, which was introduced in Parliament in February.

ITR forms 1 and 4 for assessment year (AY) 2025-26 are to be filed by individuals and entities with a total income of up to ₹50 lakh a year. Now, salaried individuals and those under the presumptive taxation scheme, having long-term capital gains of up to ₹1.25 lakh in a fiscal year, will be able to file ITR-1 and ITR-4, respectively. Earlier, such persons/entities were required to file ITR-2.