Filing Your ITR in 2025? Here’s How to Choose the Right Form for You

The Central Board of Direct Taxes (CBDT) has released every one of the income tax Report

(ITR) types ITR-1 to ITR-7 -that are valid for the fiscal period 2024-25 (tax assessment year

2025-26). The upcoming tax filing season will see individuals using updated Income Tax

Return (ITR) forms which now include several changes. The government implemented new

requirements including higher asset disclosure limits and fresh capital gains reporting rules to

bring relief to taxpayers.

ITR-1 (Sahaj): Eligible for basic sources of income

With ITR-1 (Sahaj) form, ITR-1 (Sahaj) Form, taxpayers are able to report capital gains over a

long period of time (LTCG) up to 1.25 lakh from equity shares listed on the exchange as well as

equity mutual funds in accordance with Section 112A.

Indian citizens who make up to 50 lakh through salary and one property, plus interest earned

from savings and fixed deposits are able to utilize the ITR-1 form.

ITR-1 (Sahaj): Who is eligible?

An Indian resident whose total income does not exceed Rs 50 lakh

The income sources consist of salary or pension payments plus earnings from a single house

property, with the exception of properties with carried-forward losses as well as other income

types such as interest from savings accounts and fixed deposits. ), agricultural income (up to Rs

5,000 only)

ITR-1 (Sahaj): Who is ineligible?

 Any person who serves as a director in a company

 Individuals who purchased unlisted equity shares during the past year do not qualify for

filing ITR-1.

 Individuals who earn money through business operations or professional services

 Residents who own foreign assets or receive foreign income

 v) Capital gains more than permitted threshold: LTCG exceeding Rs 1.25 lakh under

Section 112A or taxpayers carrying forward losses make them ineligible.

ITR-2: The ITR-2 form applies to people who have capital gains from multiple properties

in the updated version.

The CBDT implemented adjustments to the ITR-2 form which aim to rationalize capital gains

tax. The 'Capital Gains' schedule requires filers to separate their gains by the date they occurred

relative to July 23, 2024.

Residents with capital gains from assets or holding multiple residential properties along with

foreign assets must file their taxes using the ITR-2 form.