Updated December 28th, 2023 at 15:23 IST
Ready for tax season? Know the changes in new ITR forms for FY24
ITR-1 now requires disclosure of all bank accounts, and ITR-4 introduces a new "Receipts in cash" column for reporting cash turnover.
ITR forms overhaul: The Central Board of Direct Taxes (CBDT) has unveiled the Income Tax Return (ITR) forms for the Assessment Year 2024-25 well in advance, with the filing deadline set for July 31, 2024, unless extended. This early release aims to keep taxpayers informed about changes and facilitate timely preparation and filing.
Two notable forms, ITR-1 (SAHAJ) and ITR-4 (SUGAM), have undergone key modifications. ITR-1, tailored for individuals with straightforward income structures, now requires disclosure of all bank accounts from the previous year, specifying the type of account. Additionally, the default tax regime is the new regime, necessitating individuals to opt out if they prefer the old regime. Noteworthy is the inclusion of a column in ITR-1 to claim deductions under section 80CCH for participants in the Agnipath scheme subscribing to the Agniveer corpus fund after November 1, 2022.
Meanwhile, ITR-4 (SUGAM), designed for individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships) under the presumptive taxation scheme, introduces a new column for "Receipts in cash" to disclose cash turnover in the tax return. Notably, the 44AD Business Turnover limit is set at Rs 3 crore under the new forms, with similar adjustments for professional receipts under section 44ADA.
"The CBDT's decision to release the forms early has been well-received, allowing taxpayers more time to comprehend the changes, organise documentation, and file returns ahead of the deadline. The move reflects a departure from the usual February or March issuance of the forms," said Amit Gupta, MD, SAG Infotech.
Tax reporting overhaul
Notable changes include the default option being the new tax regime for certain entities, requiring individuals to opt out if they prefer the old regime. Taxpayers must also furnish comprehensive details about all bank accounts and cash transactions for the year.
ITR Form 1 caters to individuals with an annual income up to Rs 50 lakh, covering various income sources, including salary, pension, and agricultural income up to Rs 5,000. Meanwhile, ITR-4 is applicable to Hindu Undivided Families and limited liability partnership companies with an annual income of Rs 50 lakh or more. Notably, last year saw the addition of a separate column for cryptocurrency in ITR-4.
Published December 28th, 2023 at 15:23 IST