Eligibility Criteria

Allowed for resident individuals with income from salary, one house property, other sources (like interest, pension). Capital gains were not allowed.

Now includes taxpayers with LTCG up to ₹1.25 lakh under Section 112A (e.g. sale of equity mutual funds or listed shares), if no losses are carried forward.

Salaried taxpayers with small stock market gains no longer need to shift to ITR-2 — simplifies filing for first-time and small investors

Reporting of LTCG (Section 112A)

Not permitted at all. Even ₹1 of LTCG would require switching to ITR-2.

Allowed up to ₹1.25 lakh, with a specific schedule to report tax-exempt LTCG (under “Income on which no tax is payable”).

Empowers salaried individuals with passive capital gains (e.g. ELSS, mutual funds) to remain within ITR-1 limits — encourages retail investing.

Form 10BA Requirement for Section 80GG Deduction (Rent Paid without HRA)

Salaried persons paying rent without receiving HRA could claim deduction under 80GG without pre-submitting Form 10BA.

Now, salaried taxpayers must file Form 10BA electronically before claiming 80GG deduction.

Ensures better compliance — salaried individuals claiming rent deductions must plan earlier and validate rent details upfront.

TDS/TCS Reporting

Just had to report total TDS based on Form 16/26AS.

Now requires taxpayer to specify the section under which TDS/TCS was deducted, such as 192 (salary), 194A (interest), etc.

Makes matching with Form 26AS and AIS smoother — helps salaried taxpayers prevent mismatch issues that often delay refunds.

Section 115BAC (New Tax Regime) Declaration

Option to opt in/out was there, but many users were unaware or confused due to lack of clarity and reference to the required form.

Now requires taxpayer to specify the section under which TDS/TCS was deducted, such as 192 (salary), 194A (interest), etc.

Salaried individuals can now explicitly choose between old and new regimes and are reminded to file Form 10-IEA for opting out — avoids incorrect regime default.

Nature of Employment Classification

Limited to “Govt”, “Non-Govt”, or “Others”.

Now includes: Central Govt, State Govt, PSU, Pensioner (CG, SG, PSU), Others, Family Pension, Not Applicable.

Helps salaried and retired employees categorize themselves more accurately, improving TDS applicability and Form 16 alignment.

Exempt Income Reporting (Section 10)

Broad and unstructured — had to manually describe exempt incomes like HRA or LTA.

Now provides dropdown menus for various types of exempt income, including HRA, gratuity, LTC, commuted pension, etc

Enhances clarity and ease for salaried employees receiving structured salary components and retirement benefits.

Disclosure under Seventh Proviso to Section 139(1)

General mention of high-value spending (e.g., electricity, travel), but many missed it due to poor visibility.

Clearly asks for details of: – Foreign travel (₹2 lakh+); – Electricity bills (₹1 lakh+); – Cash deposits (₹1 crore+)

Salaried individuals with high-value spends must report accurately — prevents non-compliance even if income is below taxable limits.

Section 89A:Deferred Tax on Foreign Retirement Income

Available but not clearly defined in form.

Enhanced reporting for those claiming relief under Section 89A for retirement funds held in notified foreign countries.

NRIs or returning residents (e.g., Indian employees of MNCs) benefit from clarity in deferring tax on such income.

Schedule for Tax Payments & Refunds

Basic reporting of TDS and refund account.

Improved bank account validation, IFSC details. Option to choose preferred refund account

Prevents refund failures or misdirected payments for salaried individuals.