The Finance Act 2024 introduced several updates to ITR-1 (Sahaj) for the Assessment Year 2025-26. Here are the key changes:

• Long-Term Capital Gains (LTCG) Reporting: Taxpayers can now report exempt LTCG under Section 112A (up to ₹1.25 lakh) directly in ITR-1. Previously, they had to use ITR-2 for this.
• Standard Deduction Increase: The standard deduction for salaried individuals has been raised to ₹75,000 from ₹50,000.
• Mandatory Disclosure for Old Tax Regime: If opting for the old tax regime, taxpayers must provide a reason via Form 10-IEA.
• Enhanced Deduction Details: More detailed disclosures are required for deductions under Sections 80C, 80D, and HRA, including policy numbers and insurer details.
• New Deduction for Agniveer Corpus Fund: A deduction under Section 80CCH has been introduced for contributions to the Agniveer Corpus Fund.
• Validation Rules for TDS Sections: Certain TDS codes 194B, 194BB, 194S, 194LA, 195, 196A, 194Q, 194R and others—the income tax return will now be considered invalid for filing under ITR-1. This means taxpayers having income under special rates or from sources like online games, lotteries, crypto, property transfers, must use ITR-2 or other appropriate forms.