An overview of key changes in the ITR-1 & ITR-4 for AY 2025-26

 

1.  Capital Gains Relief for small Taxpayers:
Salaried individuals & small businesses can now file ITR-1/4 even with LTCG up to ₹1.25 lakh under Sec 112A – no need to shift to complex forms!

2. Aadhaar Enrolment ID No Longer Valid
The Finance (No. 2) Act, 2024 amended Section 139AA of the Income-tax Act, with effect from 01-10-2024, restricting the use of Aadhaar Enrolment ID in place of the Aadhaar number for PAN applications and Income-tax Returns.
In line with this amendment, ITR Forms 1 and 4 have been updated to remove the reference to Aadhaar Enrolment ID. Taxpayers are now required to provide their Aadhaar number when filing their returns, aligning with the new provisions under Section 139AA.

3. More Detailed Opt-Out Disclosures (sec 115BAC)
ITR-4 now asks for confirmation on past New Tax Regime opt-out along with continuity intent and Form 10-IEA details.

4. TDS Section Reporting Now Mandatory
In ITR-1 & 4, you must now specify the exact section under which TDS was deducted – added under Schedule TDS.