Simplifying Tax Compliance: New ITR Forms for AY 2025-26

The government has introduced simplified ITR forms 1 and 4 for the assessment year 2025-26, easing filing for individuals with long-term capital gains up to Rs 1.25 lakh. Changes include a dropdown menu for deductions and simplified reporting. This move aims to enhance taxpayer services and encourage compliance.

The government has released the new income tax return (ITR) forms 1 and 4 for the assessment year 2025-26, marking a significant move to simplify the tax filing process. These forms are tailored for individuals with long-term capital gains up to Rs 1.25 lakh from listed equities.

The revamped forms now include dropdown menus for tax deductions such as those under sections 80C and 80GG, easing the selection process for tax filers. Additionally, taxpayers are required to provide detailed section-wise information regarding TDS deductions in their returns.

This timely update reflects the government's shift towards improving taxpayer services by making the system more user-friendly, particularly for small taxpayers. The introduction of simplified forms expects to alleviate filing-related stress and encourage greater voluntary compliance.

(With inputs from agencies.)