In an effort to increase accuracy and take into account recent legal developments, the Income Tax Department has revised its regulations, which particularly impact those with capital gains, TDS, or high-value assets.
ITR-1 and ITR-4 are now available to more taxpayers
Earlier, if you had even a small amount of long-term capital gains (LTCG) from shares or mutual funds, you couldn't use the simpler ITR-1 or ITR-4 forms—you had to use more detailed and complex forms like ITR-2.
Now, the rule has changed. If your LTCG is under ₹1.25 lakh for the year, you're still allowed to use ITR-1 or ITR-4, which are much easier to fill out.