Image used for representative purpose. File
| Photo Credit: The Hindu

The government has notified Income Tax Return (ITR) forms 1 and 4 for Assessment Year (AY) 2025-26, simplifying the filing process for individuals earning salary or presumptive income who have long-term capital gains (LTCG) up to ₹1.25 lakh from listed equities. Previously required to file the more complex ITR-2, these taxpayers can now use the simpler ITR-1 (Sahaj) and ITR-4 (Sugam) forms, respectively.

This change addresses a specific inconvenience highlighted by tax experts. Sandeep Jhunjhunwala, Tax Partner at Nangia Andersen LLP, explained that previously, “salaried individuals having income under the head capital gains were required to file form ITR-2 even where the capital gains were exempt by virtue of the threshold limit prescribed under Section 112A, resulting in elaborate disclosure requirements.”

The new ITR-1 and ITR-4 forms for AY 2025-26 incorporate a section for reporting LTCG exempt under Section 112A up to the ₹1.25 lakh limit. According to the Income Tax law referenced in the notification context, LTCG up to ₹1.25 lakh per annum from the sale of listed shares and mutual funds are exempt, with gains exceeding this threshold subject to a 12.5 per cent tax.

However, Mr. Jhunjhunwala clarified that salaried individuals must still use Form ITR-2 if their LTCG under Section 112A exceeds ₹1.25 lakh, if they have other types of LTCG or short-term capital gains, or if they have capital losses to carry forward or bring forward. A similar simplification for reporting exempt LTCG (up to ₹1.25 lakh under Section 112A) has been incorporated into the new ITR-4 form for taxpayers using the presumptive taxation scheme.

Experts lauded the simplification. EY India Tax Partner Samir Kanabar stated that allowing those with minimal LTCG to use ITR-1 or ITR-4 “reduces the burden of navigating more complex forms.” He added, “This move reflects a clear shift towards enhancing taxpayer services… [it] is expected to encourage greater voluntary compliance, reduce filing-related stress, and make the system more user-friendly for small taxpayers.” AKM Global Partner-Tax Sandeep Sehgal echoed this, noting the change “streamlines the tax filing process, making it more accessible and less burdensome… thereby encouraging timely and accurate compliance”.

ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) cater to small and medium taxpayers with total annual income up to ₹50 lakh. Sahaj is for resident individuals with income from salary, one house property, other sources (like interest), and agricultural income up to ₹5,000. Sugam is for individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) with income from business and profession under the presumptive scheme. ITR-2 is filed by individuals and HUFs without business or profession income.

Beyond the LTCG change, the government has introduced other modifications. The forms now feature a drop-down menu in the utility for selecting deductions claimed under sections like 80C and 80GG. Additionally, assessees must furnish section-wise details regarding Tax Deducted at Source (TDS) deductions within the ITR.

Consistent with last year, ITR-1 continues to seek details on expenditures exceeding ₹2 lakh on foreign travel and over ₹1 lakh on electricity consumption during the previous year.

Regarding the timeline, the ITR forms are typically notified earlier, around February or March. The delay this year was attributed to Revenue Department officials being preoccupied with the new Income Tax Bill introduced in Parliament in February. Taxpayers can begin filing their returns for income earned in the 2024-25 financial year once the I-T department makes the filing utility available. The deadline for individuals not requiring an audit remains July 31.

The Securities and Exchange Board of India (SEBI) has kept in abeyance pleas by the Adani group and its offshore investors to settle a raft of regulatory charges until internal processes are reviewed, two sources with direct knowledge of the matter said.

The SEBI, where a new chief took charge in March, is reviewing rules of settlement pleas, the regulator said last month. A lack of uniformity in the settlement process and unclear rules on the nature of penalties imposed has prompted the review, the first source said.

The review could take three months after which the Adani pleas will be taken up under new processes, said the second source.

Under SEBI’s settlement process, investors and market participants pay a monetary fine or agree to regulatory directions without admission or denial of guilt. The sources declined to be identifed as the status of investigations and pleas are private.

SEBI and the Adani group did not respond to emails seeking comment. SEBI began investigating the Adani group in 2023 after U.S.-based shortseller Hindenburg alleged improper use of tax havens and stock manipulation by the group, setting on a $150 billion sell-out despite the conglomerate’s denials of wrongdoing. 

People at a jewellery shop in T. Nagar, in Chennai on Wednesday, for Akshaya Tritiya.
| Photo Credit: R. Ravindran

Gold and silver purchases for Akshaya Tritiya gathered momentum on Wednesday (April 30, 2025) afternoon, with jewellers expecting sales volumes to remain steady despite record high prices.

The All India Gem and Jewellery Domestic Council (GJC) anticipates a 35% jump in value terms compared to last year.

Gold was trading at ₹98,550 per 10 grams (including taxes) in Delhi on Wednesday, up from ₹72,300 during last year’s festival.

Buying precious metal on Akshaya Tritiya is a tradition widely followed in south India that has gradually spread across the country with increased awareness.

“We expect gold sale to remain steady at last year’s level of 20 tonnes. However, in value terms, we see 35% increase in gold sale today,” GJC Chairman Rajesh Rokde told PTI.

Shopping began early in south India, while northern regions saw increased footfall in the latter half of the day. An unexpected trend emerged with higher demand for gold mangal sutras and chains, alongside brisk silver sales, particularly for utensils, he said.

With the wedding season commencing during Akshaya Tritiya, demand is expected to rise significantly in the coming days.

Rokde noted that even consumers aged 25-40 are buying gold and silver, an emerging trend amid sharp rises in precious metal rates. Consumers are purchasing jewellery, coins, and bars based on necessity and budget.

“Affordability has been impacted due to rise in gold prices. However, there is strong buying sentiment due to Akshaya Tritiya,” World Gold Council India CEO Sachin Jain said.

PNG Jewellers’ Chairman Saurabh Gadgil reported that nearly 50 per cent of purchases involve old gold exchanges, allowing customers to manage budgets while maintaining festival and wedding traditions.

Kama Jewelry Managing Director Colin Shah said, “Overall, a 10-15% rise is sales was witnessed as compared to last year.” GSI India Managing Director Ramit Kapur noted an uptick in studded jewellery across key Indian markets, while Aukera CEO Lisa Mukhedkar highlighted the growing importance of lab-grown diamonds during this year’s festival.

The Confederation of All India Traders projects sales of approximately 12 tonnes of gold worth ₹12,000 crore and 400 tonnes of silver valued at ₹4,000 crore, totalling an estimated Rs 16,000 crore in business.

Buying of gold will continue till late in the evening on Wednesday.

Experts observe that gold demand has remained resilient over the past three years despite reaching new price peaks.

India imports 700-800 tonnes of gold annually.