If you are thinking of filing an income tax return for the financial year 2024-25 (AY 2025-26), then you must know about the changes in the rules for ITR forms ITR1, ITR2, ITR3, and ITR4. Also, when you file the return and go to the Income Tax portal, you will have to wait for the release of e-utilities for filing ITR. At the same time, today we are giving you information about the changes made to the ITR form, which will help you in filing returns for the financial year 2024-25 (AY 2025-26).

To simplify the income tax return, the Finance Ministry has given 5 forms for filing tax returns, which are used according to the income. All the new rules that we are telling you about are related to these forms.

ITR 1 and ITR 4 tax eligibility increased
The new rules are related to equity and equity mutual funds, in which if the taxpayer earns a profit of Rs 1.25 lakh in a long-term investment, then they will have to use ITR 1 and ITR 4 forms to file income tax returns. Let us tell you that earlier, ITR 2 and ITR 3 were used for this, and the tax benefit was only Rs 1 lakh instead of Rs 1.25 lakh.

Aadhaar enrollment ID will not be valid.

Till now, in case of not having an Aadhaar card to file an income tax return, an Aadhaar enrollment ID was used along with a PAN card, but now it has been made mandatory to have an Aadhaar number to file a tax return. For this, the column of Aadhaar enrollment ID has been removed in ITR 1, ITR 2, ITR 3, and ITR 5.

New tax regime for small businesses
The government introduced the new tax regime in the budget last year to benefit small businesses. Also, changes cannot be made between the old and new tax regimes again and again. As per the income tax rules, taxpayers with business income have the option to switch from the old tax regime to the new tax regime once in a lifetime. However, this switching requires submitting a form to the tax department.

Last year, ITR-4 simply asked whether the taxpayer had opted out of the new tax regime. If yes, the taxpayer has to provide the date and acknowledgement number of Form 10-IEA, if applicable. However, more detailed disclosure has been made in ITR-4 for FY 2024-25 (AY 2025-26). It now seeks confirmation of the previous filing of Form 10-IEA and asks whether the taxpayer wants to continue to exit the new tax regime in the current year.”

Sections 206AB and 206CCA removed
Sections 206 AB and 206CCA have been completely removed to make compliance easier. Due to this tax deductors and tax collectors will face fewer problems.

Increased exemption under section 87A
The Finance Minister has increased the exemption under section 87A from Rs 25,000 to Rs 60,000 in the budget presented in February. This exemption ensures that no income tax will have to be paid on annual income up to Rs 12 lakh.

Changes in TDS rules
The TDS limit has been increased in many sections from April 1, 2025, which will provide great relief to small taxpayers. The TDS limit on interest income for senior citizens will increase to Rs 1 lakh.

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