The Income Tax Department has notified ITR forms 1 and 4 for the assessment year 2024-25, allowing individuals and entities with an annual total income of up to ₹50 lakh to file their returns.
The Income Tax Department has notified ITR forms 1 and 4, which are filed by individuals and entities with annual total income of up to ₹50 lakh, for assessment year (AY) 2024-25. The I-T Department notified the forms on Friday.
“Changes introduced in new ITR forms 1 and 4 notified for Assessment Year 2024-25. Surprising taxpayers with an unexpected and welcome gesture, the CBDT has played the role of an early Santa Claus this year by unveiling the Income Tax Return(ITR) Forms 1 and 4 for the Assessment Year 2024-25. These ITR Forms will be applicable for filing income tax returns for income earned during the previous year 2023-24 (between 01-04-2023 to 31-03-2024)," said Naveen Wadhwa, Vice President Research, Taxmann.
When are ITR forms notified?
The department usually notifies the ITR form before the start of the subsequent assessment year, i.e. in February or March. This unexpected early release not only marks a departure from the established timeline but also implies that taxpayers will have a more extended period to familiarize themselves with the changes, gather necessary documentation, and file their returns with greater precision.
ITR Form 1
ITR Form 1 (Sahaj) caters to a large number of small and medium taxpayers.
Sahaj can be filed by a resident individual having an income of up to ₹50 lakh and who receives income from salary, one house property, other sources (interest), and agricultural income of up to ₹5,000.
ITR Form 4
ITR Form 4 (Sugam) are simpler form that caters to a large number of small and medium taxpayers. Sugam can be filed by individuals, HUFs, and firms (other than Limited Liability Partnerships (LLPs)) being a resident having total income of up to ₹50 lakh and income from business and profession.
Key changes in the new ITR Form 1, Form 4
1)An assessee filing ITR 1 is only required to indicate his choice of tax regime in the return of income. An assessee filing ITR 4 will be required to file Form 10-IEA to opt out of the new tax regime.
2) A new column has been added to claim deduction under section 80CCH in new ITR Forms 1 and 4
The Finance Act 2023 added a new Section 80CCH, which states that individuals enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund or after 01-11-2022 will be eligible for a tax deduction for the total amount deposited in the Agniveer Corpus Fund.
3) The "Receipts in Cash" column has been added to ITR-4 to claim an enhanced turnover limit
The Finance Act, 2023 has enhanced the turnover threshold limit from ₹2 crore to ₹3 crore for opting for the presumptive taxation scheme under Section 44AD if the receipts in cash do not exceed 5% of the total turnover or gross receipts for the previous year.
