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Income Tax Filing Made Simple: Detailed Guide on New ITR-1 & ITR-4 Rules for FY 2024–25

By Vedarth
Income Tax Filing Made Simple: Detailed Guide on New ITR-1 & ITR-4 Rules for FY 2024–25

We’ve all been there.

You want to stay compliant, avoid penalties, and file your income tax return on time. But once you sit down to do it, you’re hit with forms, disclosures, and jargon that make it feel harder than it should be.

You scroll through confusing instructions. You’re unsure which form to choose. You’re stuck trying to make sense of Form 26AS, AIS, deductions, and OTPs. And before long, you're thinking:

  • “Wait… am I supposed to file ITR-1 or ITR-4?”
  • “Why is some info already filled? Is it correct?”
  • “Can someone please explain presumptive tax without using more tax words?”

If that sounds familiar, you're definitely not alone.

The Real Problem: Complexity in Simplicity

The Income Tax Department has made genuine efforts to simplify filing — introducing ITR-1 (Sahaj) and ITR-4 (Sugam) specifically for individuals and small businesses. But for many, these forms still feel like a maze.

Here’s what usually happens:

  • You’re eligible for a simple form, but unsure what counts as "other income."
  • Your data appears pre-filled, but you’re afraid of submitting something wrong.
  • You spend hours on portals instead of just filing and moving on.

The intent is simplicity — but without the right tools or guidance, the process still feels intimidating.

Understanding the ITR Forms: ITR-1 & ITR-4

Taxpayers aren't all the same. That’s why there are different ITR forms based on your income sources and structure.

  • ITR-1 (Sahaj) — For salaried individuals and pensioners earning up to ₹50 lakh from simple income sources.
  • ITR-4 (Sugam) — For small businesses and professionals under presumptive taxation (Sections 44AD, 44ADA, 44AE).

Choosing the right form not only avoids errors and penalties — it ensures a smoother experience with faster processing.

What’s New in FY 2024–25?

Both ITR-1 and ITR-4 have been updated to make life easier for taxpayers. Here’s how:

  • Pre-filled info: Salary, interest income, TDS — auto-filled using Form 26AS and AIS data.
  • Tax regime clarity: Choose between old and new regimes, with clearer deduction visibility.
  • E-verification made easy: Aadhaar OTP or net banking — no more posting ITR-V forms.
  • Better AIS sync: High-value transactions appear automatically, reducing mismatches.
  • Presumptive tax simplified (ITR-4): Just enter turnover and profit % — no P&L required.

Who Can — and Can’t — Use ITR-1 & ITR-4?

Quick eligibility check:

  • ITR-1: Residents earning up to ₹50 lakh via salary/pension, one house property, and interest.
  • ITR-4: Residents, HUFs, and firms (except LLPs) with income up to ₹50 lakh under presumptive taxation.

You cannot use these forms if you:

  • Are a non-resident or have foreign income/assets
  • Have capital gains or more than one house property
  • Are a director in a company or hold unlisted equity shares
  • Earn income from gambling, lottery, or racehorses

Why It Matters

Using the right ITR form, and filing it correctly and on time, has real consequences:

  • Filing late? You could be fined up to ₹5,000 under Section 234F.
  • Wrong form? Your return may get rejected or flagged for review.
  • Missed refund? Delayed filings often delay refunds — or forfeit them altogether.

In short: accuracy and timeliness aren't optional — they're essential.

How Zeba Pro Makes It Simple

At Zeba Pro, we know how overwhelming tax compliance can be. That’s why we’ve built features that work in the background to keep your business — and your team — compliant.

  • Timely alerts for ITR deadlines, PF, ESIC, and GST due dates
  • Payroll that auto-calculates TDS, so Form 16s are always ready
  • Tools tailored for startups, freelancers, and SMEs — no extra fluff
  • Guidance to help choose between old vs new tax regimes
  • No tax jargon — just clear, actionable steps

It’s tax compliance without the chaos.

Key Deadlines You Shouldn’t Miss

  • July 31, 2025: For individuals (no audit needed)
  • October 31, 2025: For audited businesses or professionals

Mark your calendar. Filing early means faster refunds and peace of mind.

Final Word

If income tax filing still feels confusing...
If you’re worried about choosing the wrong form...
If you just want it done right without wasting time...

👉 It’s time to switch to a system that simplifies everything — so you can focus on what really matters.
Explore Zeba Pro. We’ll handle the setup. You just stay compliant — effortlessly.