Tax Filing Just Got Easier for Salaried People – Finally, Some Relief!
In a country where tax rules often feel rigid or outdated, small reforms like this one speak loudly. It shows that simplification isn’t just possible — it’s happening.
And hopefully, this is just the beginning. 🤞
Tax season has always been a pain for many of us who make decisions to invest some money for the future while working regular jobs.
Particularly when we make a little money from equities or mutual funds, we must use the complex ITR-2 form to file. It didn't seem right.
But now, there’s some good news. 🤗
You no longer need to file an ITR-2 if you are a salaried individual receiving up to ₹1.25 lakhs in long-term capital gains (LTCG) from sources such as mutual funds or equity shares. Instead, you can use the simpler and faster ITR-1 form.
For the first time, it appears that the system is considering the needs of middle-class individuals like us, who are simply trying to do the right thing without stress, rather than trying to exploit the system.
Another good change: 💰
Earlier, capital gains above ₹1 lakh were taxable. Now, the tax-free limit has been increased to ₹1.25 lakhs. So, you can earn a bit more without paying tax. Yes, the tax rate for LTCG has gone up from 10% to 12.5%, but that only applies if you go over the ₹1.25 lakh mark.
This change doesn’t solve everything, but it removes one unnecessary obstacle. It gives people more confidence to handle their taxes without needing a CA for every small detail. Especially for first-time filers or young investors just starting their financial journey, this update is a step toward empowerment.
What does this mean in simple terms? 💬
Earn under ₹50 lakhs from salary,
Own one house,
Have some interest income,
And earn less than 1.25 lakhs from LONG TERM CAPITAL GAINS U/S 112A,
If there is a long- term capital loss, then ITR 2 has to be filed. But, if there is a long-term capital gain, then ITR 1 is enough.
No stress, no complicated forms...
When the system respect people’s time and effort, trust builds naturally. That trust leads to better compliance, fewer delays, and a sense that the government actually wants to work with the people, not just collect from them.
It’s a small change, but it really makes a difference. It saves time, avoids confusion, and encourages more people to file their taxes on time. Most importantly, it shows that the system is slowly becoming more people friendly.
Sometimes, progress doesn't come with big headlines. Sometimes, it comes in the form of one less form to fill, and one more step toward ease.