Overview

• The Income Tax Department has notified ITR-1 and ITR-4 for individuals and entities with annual incomes up to ₹50 lakh, and ITR-3 for those with business or professional income.
• Schedule AL's asset and liability reporting threshold has been raised from ₹50 lakh to ₹1 crore, reducing disclosure requirements for middle-income taxpayers.
• Capital gains must now be split based on whether they occurred before or after July 23, 2024, reflecting the new 12.5% LTCG tax rate on pre-July 2024 real estate transactions.
• Digital enhancements include dropdown menus for deductions like Section 80C and section-wise TDS reporting, improving filing accuracy and transparency.
• Key deductions clarified include ₹1.5 lakh under Section 80C (old regime only), ₹2 lakh for home loan interest under Section 24B, and up to ₹1 lakh for health insurance premiums under Section 80D.