[BREAKING] Income Tax Return: CBDT notifies Revised ITR Forms 1 and 4 [Read Notification]
The board has revised both forms of ITR 1 and 4 certifying that no taxpayer will be adversely affected due to this retrospective application
![[BREAKING] Income Tax Return: CBDT notifies Revised ITR Forms 1 and 4 [Read Notification]](https://www.taxscan.in/wp-content/uploads/2025/04/Income-Tax-Return-ITR-CBDT-Revised-ITR-Forms-1-and-4-TAXSCAN.jpg "[BREAKING] Income Tax Return: CBDT notifies Revised ITR Forms 1 and 4 [Read Notification]")
The Central Board of Direct Taxes ( CBDT ) has officially notified the amended Income Tax Return ( ITR ) Forms 1 and 4, effective from April 1, 2025. The Ministry of Finance issued the notification vide Notification No. 40/2025, dated April 29, 2025. The revised form is introduced under the Income-tax Rules, 1962, bringing several changes to Rule 12 which governs the filing of income...
The Central Board of Direct Taxes ( CBDT ) has officially notified the amended Income Tax Return ( ITR ) Forms 1 and 4, effective from April 1, 2025. The Ministry of Finance issued the notification vide Notification No. 40/2025, dated April 29, 2025. The revised form is introduced under the Income-tax Rules, 1962, bringing several changes to Rule 12 which governs the filing of income tax returns.
As per the notification, in sub-rule (1) of Rule 12, the year “2024” has been replaced with “2025” to align with the new assessment year. A key amendment has been made to clause (a), sub-clause (iii), where the phrase “does not have any loss under the head,” has been updated to read “does not have any loss under the head; or,” thereby enabling further inclusions.
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Importantly, a new sub-clause (iv) has been added to clause (a), allowing individuals with only long-term capital gains under section 112A up to a limit of ₹1,25,000 and without any brought forward or carry forward losses under the same head to use ITR Form 1.
Further, clause (ca) has also undergone important modifications. The revised text permits individuals, Hindu Undivided Families (HUFs), or firms (excluding LLPs) who are residents and whose income from business or profession is computed under presumptive taxation schemes (sections 44AD, 44ADA, and 44AE), and who also have long-term capital gains under section 112A up to ₹1,25,000, to file using Form SUGAM (ITR-4). This change ensures broader inclusion while maintaining the simplicity of the ITR-4 filing mechanism.
The notification further clarifies that the rules are being given retrospective effect from April 1, 2025, and certifies that no taxpayer will be adversely affected due to this retrospective application.
To Read the full text of the Notification CLICK HERE
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