ITR-1 Sahaj and ITR-4 Sugam has been notified for AY 2025-26

ITR-1 Sahaj and ITR-4 Sugam has been notified for AY 2025-26. Scope of ITRS enlarged for capital gain u/s 112A

CBDT vide Notification No. 40/2025 has notified the Income-tax (twelfth Amendment) Rules, 2025 w.e.f. 01.04.2025. ITR-1 Sahaj and ITR-4 Sugam has been notified for AY 2025-26. Amendments have been made to Rule 12 relating to return of income.

Scope of the ITR-1 Sahaj has been enlarged by including those assessees who have only long-term capital gains under section 112A not exceeding one lakh twenty-five thousand rupees and does not have any brought forward loss or loss to be carried forward under the head.

Similarly scope of ITR-4 Sugam has been enlarged to provide that assessees required to file under the presumptive taxation under section 44AD, 44ADA or 44AE shall also include assessees who in addition to presumptive income, have only long-term capital gains under section 112A not exceeding one lakh twenty-five thousand rupees. Such assessees shall now file their return of income in ITR4 Sugam.

An amendment has been made in Rule 11B related to conditions for allowance for deduction under section 80GG  in respect of any expenditure incurred by an assessee towards payment of rent. It has been added that declaration in Form 10BA shall be furnished the same along with the return of income. This amendment was necessitated due to the fact that Rule 12(2) do not provide need for any document/audit report etc. to be filed along with return.

• Order u/s 69 of the CGST Act has to be communicated before arrest of person concerned– SC
• Refund can not be denied on the ground that it was claimed in a return filed u/s 148 – ITAT
• Distinction between religious & charitable purposes is determined by institution’s primary or dominant object
• Fit case to issue notice u/s 148 – Relevancy of material & application of mind to objections important
• AO is under an obligation to assign reasons for rejecting explanation of the assessee