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ITR-1 and ITR-4 House Property Rule: Filing Income Tax Returns has become even simpler for the salaried class. The Income Tax Department has released new ITR forms for the Assessment Year (AY) 2025-26. Now, even individuals owning two houses will be able to file using these simplified forms.

ITR-1 and ITR-4 House Property Rule: The Income Tax Department has notified the new ITR-1 and ITR-4 forms for Assessment Year 2025-26. This time, the government has significantly simplified the rules for the salaried class and small taxpayers. Let's find out what has changed for you this time around.

Who Benefits the Most?

According to a report by *Business Today*, the rule until now was that if you owned more than one house (House Property), you were required to file more complex forms such as ITR-2 or ITR-3. However, owners of two houses can now directly file using the ITR-1 or ITR-4 forms. Whether the house is self-occupied or rented out, you will be able to utilize these simplified forms. This will significantly reduce the burden of paperwork.

What New Information Must Be Provided in the Forms?

To enhance transparency, several new columns have been added to the forms. Now, if you have not received rent from a tenant, you can report it separately under the 'Unrealised Rent' column. Additionally, if you are filing a return on behalf of another person (as a Representative Assessee), providing details regarding that person is now mandatory.

What Are the Changes Regarding Donations and Tax Exemptions?

If you wish to claim a tax exemption on donations under Section 80G, you must now provide the transaction ID and the bank's IFSC code along with the donation receipt. For donations made to political parties, it is now mandatory to specify the name of the party and its PAN number. Please note that the relief under Section 89A, applicable to foreign retirement accounts, is no longer available in ITR-1 and ITR-4; for this, you will need to file a more comprehensive form.

Is it easy to opt for the Old Tax Regime?

Yes, the government has further streamlined the process for choosing between the New Tax Regime and the Old Tax Regime. New changes have been introduced to eliminate confusion regarding Form 10-IEA, thereby enabling taxpayers to select their preferred regime without making any errors.