The Central Board of Direct Taxes (CBDT) recently notified the Income-tax (Twelfth Amendment) Rules, 2025. This amendment introduces some changes to the income tax return (ITR) forms that taxpayers will use for Assessment Year (AY) 2025-26.
What’s Changed?
The amendment mainly updates Rule 12 of the Income-tax Rules, 1962, which deals with who can file ITR-1 (Sahaj) and ITR-4 (Sugam), and under what conditions.
Individuals who earn small long-term capital gains under section 112A (up to ₹1.25 lakh) can now file ITR-1 or ITR-4, depending on their other sources of income.
The notification also replaces the formats of ITR-1 and ITR-4 to reflect these changes and adds a small clarification about filing Form 10BA (needed for claiming deduction on rent paid under section 80GG).