Home Income tax Corporate Income tax 3 Noteworthy Changes in ITR Filing Forms 1 and 4 for AY25

3 Noteworthy Changes in ITR Filing Forms 1 and 4 for AY25

3 Noteworthy Changes in ITR Filing Forms 1 and 4 for AY25
Notable Changes in ITR Forms 1 and 4 for FY 2023-24

The Earnings Tax Division has notified ITR Kind 1 and Kind 4 for the evaluation yr (AY) 2024-25. These kinds are utilized by people and entities with an annual whole earnings of as much as ₹50 lakh. The notification for these kinds was issued by the IT Division on Friday.

As per a tax skilled, the newly notified ITR kinds 1 and 4 for AY 2024-25 have undergone adjustments. In a shocking and welcomed transfer, the CBDT has acted as an early Santa Claus this yr by unveiling the Earnings Tax Return (ITR) Varieties 1 and 4 for the Evaluation Yr 2024-25. These kinds will likely be relevant for submitting earnings tax returns for the earlier yr 2023-24, protecting the interval from 01-04-2023 to 31-03-2024.

When Are the ITR Varieties Sometimes Launched?

Usually, the division notifies the ITR kinds earlier than the beginning of the next evaluation yr, usually in February or March. Nonetheless, this surprising early launch not solely deviates from the standard timeline but additionally offers taxpayers with an extended interval to acquaint themselves with the modifications, collect vital documentation, and file their returns with elevated accuracy.

Key Issues for Submitting Kind 1 of Earnings Tax Return

ITR Kind 1, which is Sahaj, is filed by a big variety of small and medium-sized taxpayers.

Sahaj is relevant for resident people with an earnings of as much as ₹50 lakh who obtain earnings from wage, a one-house property, different sources (corresponding to curiosity), and agricultural earnings as much as ₹5,000.

Necessary Data for Submitting Kind 4 of ITR

ITR Kind 4, which is Sugam, is a simplified kind designed for a lot of small and medium-sized taxpayers. Sugam could be filed by resident people, HUFs, and companies (excluding Restricted Legal responsibility Partnerships or LLPs) with a complete earnings of as much as ₹50 lakh, together with earnings from enterprise and occupation.

Key Modifications within the New ITR Kind 1, Kind 4

  • For people submitting ITR 1, they solely must specify their selection of tax regime inside the earnings tax return. Nonetheless, people submitting ITR 4 will likely be required to submit Kind 10-IEA to decide on the brand new tax regime.
  • New columns have been launched in ITR Varieties 1 and 4 to assert deductions following part 80CCH.

Via the implementation of the Finance Act of 2023, a recent provision, Part 80CCH was launched. This provision permits people who’ve enrolled within the Agnipath Scheme and made contributions to the Agniveer Corpus Fund after 01-11-2022, to qualify for a brand new tax deduction primarily based on the complete quantity deposited within the Agniveer Corpus Fund.

  • A “Receipts in Money” column has been added to ITR-4 to assert an elevated turnover threshold.

Underneath the Finance Act of 2023, the turnover restrict to qualify for the presumptive taxation scheme underneath Part 44AD has been elevated from 2 crore to three crore. Nonetheless, that is relevant provided that the money receipts don’t surpass 5% of the overall turnover or gross receipts for the previous yr.


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