Govt Simplifies Tax Filing: Individuals With LTCG Up to ₹1.25 Lakh Can Use ITR-1 & ITR-4

The government has notified new Income Tax Return (ITR) forms for Assessment Year 2025-26, offering relief to salaried and presumptive income earners. Individuals with long-term capital gains (LTCG) up to ₹1.25 lakh from listed equities can now file their returns using the simpler ITR-1 (Sahaj) and ITR-4 (Sugam) forms instead of the more complex ITR-2. This move aims to streamline tax compliance, reducing the burden on small taxpayers. Experts believe this change will encourage greater voluntary compliance and make the system more user-friendly. With tax filing season approaching, understanding these updates is crucial for taxpayers seeking a hassle-free experience.