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<h1>LTCG exemption threshold: simplified ITR eligibility expanded to allow small exempt gains to be reported on easier forms.</h1> The government has notified ITR 1 (Sahaj) and ITR 4 (Sugam) for AY 2025 26, expanding eligibility so resident individuals and entities with total income up to Rs 50 lakh may use these simplified forms. Taxpayers with long term capital gains from listed shares and mutual funds up to Rs 1.25 lakh can file ITR 1 or ITR 4 instead of ITR 2; ITR 1 and ITR 4 now include sections to report exempt LTCG under Section 112A. Forms also update disclosure fields for certain deductions, require section wise TDS details, and retain queries on large foreign travel and electricity expenditures.