New ITR Forms Released File Taxes for AY 2024-25 with Ease for Income up to ₹50 Lakh!

Stargazer Daily
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On Friday, the Income Tax Department issued a notification regarding the assessment year (AY) 2024-25, stating that ITR forms 1 and 4 are now available for individuals and entities with an annual total income of up to ₹50 lakh to file their taxes.

The CBDT has pleasantly surprised taxpayers by releasing the new ITR forms 1 and 4 for Assessment Year 2024-25. According to Naveen Wadhwa, Vice President Research at Taxmann, these forms will be used for filing income tax returns for the income earned between 01-04-2023 to 31-03-2024.

When are the ITR forms announced?

Typically, the ITR form is usually announced by the department before the beginning of the next assessment year, which usually happens in February or March. This surprising early introduction not only deviates from the usual schedule but also suggests that taxpayers will have a longer time to understand the modifications, collect required paperwork, and submit their returns with increased accuracy.

Income Tax Return Form 1

A significant portion of small and medium taxpayers are served by the ITR Form 1 (Sahaj).

An individual who resides in India and earns a salary, income from one property, income from other sources such as interest, and agricultural income of up to ₹5,000 can file Sahaj if their total income is less than ₹50 lakh.

Form 4 for Income Tax Returns

The ITR Form 4 (Sugam) is designed to be a more straightforward form for many small and medium taxpayers. It is available for individuals, HUFs, and firms (excluding LLPs) who are residents and have a total income of up to ₹50 lakh, including income from business and profession.

Major modifications in the latest ITR Form 1 and Form 4

If someone is filling ITR 1, they only need to state their preferred tax regime when submitting their income return. However, if someone is filing ITR 4, they will need to complete Form 10-IEA to choose not to be a part of the new tax regime.

The latest ITR Forms 1 and 4 now include an additional section 80CCH column for claiming deductions.

Individuals who are participating in the Agnipath Scheme and making contributions to the Agniveer Corpus Fund on or after November 1, 2022, will qualify for a tax deduction on the entire deposited amount as per the newly introduced Section 80CCH of the Finance Act 2023.

ITR-4 now includes a new column called “Cash Receipts” to accommodate a higher turnover threshold for claiming.

The turnover threshold limit for choosing the presumptive taxation scheme under Section 44AD has been increased from ₹2 crore to ₹3 crore in the Finance Act, 2023, as long as cash receipts are not more than 5% of the total turnover or gross receipts from the previous year.

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