Edited the readme file and tested with WP 4.0

Author: gagan0123

index.php

@@ -5,7 +5,7 @@
 Description: Adds a text-like widget that allows you to write shortcode in it. (Just whats missing in the default text widget)
 Author: gagan0123
 Author URI: http://gagan.pro/
-Version: 0.3
+Version: 1.0
 Text Domain: shortcode-widget
 License: GPL version 2 or later - http://www.gnu.org/licenses/old-licenses/gpl-2.0.html
 */
@@ -28,4 +28,4 @@ function shortcode_widget_load_text_domain(){
 function shortcode_widget_test_output($args){
 	return "It works";
 }
-?>
+?>

readme.txt

@@ -2,8 +2,8 @@
 Contributors: gagan0123
 Tags: Shortcode, Widget
 Requires at least: 3.3
-Tested up to: 3.5.1
-Stable tag: 0.3
+Tested up to: 4.0
+Stable tag: 1.0
 License: GPLv2 or later
 License URI: http://www.gnu.org/licenses/gpl-2.0.html
 
@@ -12,14 +12,26 @@ Adds a text-like widget that allows you to write shortcode in it.
 == Description ==
 
 Adds a text-like widget that allows you to write shortcode in it. (Just whats missing in the default text widget)
+To test the widget you can add the widget and use the shortcode "[shortcode_widget_test]", it will display "It works" on the fronte
+nd and this will confirm the widget does work.
 
 == Installation ==
 
 1. Add the plugin's folder in the WordPress' plugin directory.
 1. Activate the plugin.
 1. You are now ready to use the Shortcode Widget from the Widgets section.
+1. To test the widget you can add the widget and use the shortcode "[shortcode_widget_test]", it will display "It works" on the frontend and this will confirm the widget does work.
 
 == Changelog ==
-0.1	Added the shortcode widget
-0.2	Added translation support
-0.3 Added a shortcode for testing the plugin '[shortcode_widget_test]'
+
+= 0.1 =
+* Added the shortcode widget
+
+= 0.2 =
+* Added translation support
+
+= 0.3 =
+* Added a shortcode for testing the plugin '[shortcode_widget_test]'
+
+= 1.0 = 
+* Tested with WP 4.0