SAHAJ (ITR 1) and SUGAM (ITR-4) notified for FY 2025-26: The notification amend the Income Tax Rules. FORM ITR- 1 and ITR-4 will be replaced with new forms in Appendix-II of the existing rules.
— ITR-1 SAHAJ is for individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh and having Income from Salaries, one house property, other sources (Interest etc.), long-term capital gains under section 112A up to Rs 1.25 lakh, and agricultural income up to Rs 5 thousand. It is not for an individual who is either Director in a company or has invested in unlisted equity shares or in cases where TDS has been deducted under section 194N or if income tax is deferred on ESOP or has assets (including financial interest in any entity) located outside India.
— ITR-4 SUGAM is for Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE, and having long-term capital gains under section 112A up to Rs. 1.25 lakh. It is not for an individual who is either Director in a company or has invested in unlisted equity shares or if income tax is deferred on ESOP or has agricultural income more than Rs. 5000 or has assets (including financial interest in any entity) located outside India. (Income Tax Notification 40/2025 Dated 29/04/2025)