The Revenue Tax (I-T) Division has notified revenue tax returns for evaluation yr 2025-26 (monetary yr 2024-25) enabling the submitting of returns efficient April 1. This yr onwards, the tax division has included a provision to file particulars of long-term capital positive factors inside the ITR-1 and ITR-4 codecs.
Earlier, taxpayers submitting ITR-1 needed to file the main points of capital positive factors in ITR-2 individually. Taxpayers are required to file particulars of capital positive factors the place the assessee has solely long-term capital positive factors underneath part 112A not exceeding Rs 1.25 lakh and doesn’t have any introduced ahead loss or loss to be carried ahead.
Ease of submitting LTCG
The I-T Division, which features underneath the Central Board of Direct Taxes (CBDT), will quickly operationalise the submitting functionalities for the generally used segments ITR-1 Sahaj and ITR-4 Sugam. ITR-1 may be filed by a person having revenue as much as Rs 50 lakh and who receives revenue from wage, one home property, different sources (curiosity, and so forth), long-term capital positive factors underneath part 112A as much as Rs 1.25 lakh, and agricultural revenue as much as Rs 5,000.
Part 112A of the Revenue-tax Act offers for the taxation of long-term capital positive factors (LTCG) arising from the sale of listed fairness shares, equity-oriented mutual funds, and items of enterprise trusts. An extended-term capital acquire is the revenue earned from the sale of shares or different belongings when they’re held for greater than 12 months (for listed securities) or 24 months (for different belongings) on the time of sale.
ITR-4 may be filed by people, Hindu Undivided Households (HUFs) and corporations with whole revenue as much as Rs 50 lakh, having revenue from enterprise and occupation, and having long-term capital positive factors underneath part 112A upto Rs 1.25 lakh.
Sandeep Sehgal, Accomplice-Tax, AKM World, a tax and consulting agency stated, “Beforehand, any LTCG underneath Part 112A, whatever the quantity, necessitated using the extra complicated ITR-2 kind. With the newest amendments, people can now utilise the less complicated ITR-1 (Sahaj) or ITR-4 (Sugam) types if their LTCG underneath Part 112A doesn’t exceed Rs 1.25 lakh and so they don’t have any capital losses to hold ahead or set off. This modification streamlines the tax submitting course of, making it extra accessible and fewer burdensome for small buyers and salaried people, thereby encouraging well timed and correct compliance.”
Particulars sought by Revenue Tax Division in ITR
Other than disclosing the revenue earned from varied sources, taxpayers want to offer particulars of any expenditure over Rs 2 lakh for journey to a international nation for self or for another particular person within the ITR.
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Any expenditure of over Rs 1 lakh incurred on consumption of electrical energy through the earlier yr must also to be declared within the tax return.
Taxpayers should additionally disclose the deposit of an quantity or combination of quantities of over Rs 1 crore in a number of present accounts through the earlier yr whereas submitting ITR.
Significance of AIS and Type 26AS
As well as, whereas submitting the revenue tax return, the detailed abstract via Annual Data Assertion (AIS) and Type 26AS is out there to the taxpayer, who can both settle for it as right, or present suggestions if there are discrepancies.
The AIS is a abstract of a taxpayer’s monetary transactions given in Type 26AS, which comprises particulars of all Tax Deducted or Collected at Supply (TDS/TCS) together with different particulars concerning curiosity, dividend, and inventory market and mutual fund transactions.
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Since AIS contains particulars of economic transactions from reporting entities, the data can be accessible solely after it will get up to date from reporting entities similar to banks and monetary establishments. Equally, Type 26AS will get up to date after the I-T Division processes the TDS returns.
For the reason that final date for submitting TDS returns for the January-March quarter is Might 31, the up to date info is out there solely within the first week of June. Taxpayers can file their ITR at https://eportal.incometax.gov.in/iec/foservices/#/login.