| eligibility criteria |
Permission was given for persons with income from salary, a house property, other sources (eg interest, pension). Capital gains were not allowed. |
It now includes taxpayers with LTCG up to Rs 1.25 lakh under Section 112A (eg equity mutual funds or sales of listed shares), provided no deficit has been carried forward. |
Salary taxpayers with small benefits from the stock market no longer need to go to ITR-2-for the first time it has become easier to file for small investors. |
| LTCG Reporting (Section 112A) |
It is not allowed at all. LTCG will also have to go to ITR-2 for ₹ 1. |
Up to ₹ 1.25 lakh is allowed with a specific schedule to report tax-free LTCG (‘under the income on which no tax is payable’). |
Empower salaried individuals with passive capital gains (such as ELSS, mutual funds) to live within the ITR-1 border-encourages retail investment. |
| Form 10BA requirement for Section 80GG deduction (rent paid without HRA) |
Without receiving HRA, salaried persons can claim deduction under 80 GG without pre-gesture. |
Now, salaried taxpayers will have to file Form 10BA electronically before claiming 80GG deduction. |
Better compliance ensures – salaried persons claiming rent cuts should be planned in advance and verification of rent details in advance. |
| TDS/TCS Reporting |
I had to report a total TDS based on Form 16/26AS. |
Now the taxpayer needs to specify the section under which TDS/TCS was deducted, such as 192 (salary), 194A (interest), etc. |
Form makes matching easy with 26AS and AIS – salaried taxpayers help prevent mismatched issues that often delay refunds. |
| Section 115BAC (new tax system) announcement |
There was an option to join/exit it, but many users were ignorant or confused due to lack of clarity and reference to the required form. |
Now the taxpayer needs to specify the section under which TDS/TCS was deducted, such as 192 (salary), 194A (interest), etc. |
Personal people can now clearly choose between the old and new arrangements and are reminded of filing Form 10-IEA for exit-so that the wrong system can be avoided by default. |
| Nature classification of employment |
Limited to “government”, “non-government” or “others”. |
Now it includes: Central Government, State Government, PSU, Pensioner (CG, SG, PSU), others, family pension, not applicable. |
Helps salaried and retired employees in classifying themselves more accurately, which improves TDS purpose and form 16 alignment. |
| Exempted Income Reporting (Section 10) |
Widespread and unnecessary – had to manually describe exempted income like HRA or LTA. |
Now offers a dropdown menu for various discounts including HRA, Gratuity, LTC, Common Pension etc. |
Increases clarity and ease for structured wage components and salaried employees who receive retirement benefits. |
| Disclosure under the seventh provision of Section 139 (1) |
Many people ignore it due to high value expenditure (eg, electricity, travel), but due to poor visibility. |
It clearly sought details of the following: – Travel abroad (₹ 2 lakh+); – Electricity bill (₹ 1 lakh+); – Cash deposit (₹ 1 crore+) |
Persons with high-value expenditure should report accurately-this can prevent non-transportation, even if the income is less than the taxable limit. |
| Section 89A: Foreign retirement income |
Available but its form is not clearly defined. |
There was an increase in reporting for those claiming relief under Section 89A for the retirement funds placed in notified foreign countries. |
Non -resident Indians or residents (eg, eg Indian employees of multinational companies) get clarity in postponing tax on such income. |
| Schedule for tax payment and refund |
Basic reporting of TDS and refund account. |
Bank account verification, improvement in IFSC details. Option to choose favorite refund account |
Refund prevents failures or incorrect payments for salaried persons. |
North India Statesman
