The Income Tax Department has notified ITR Forms 1 and 4, to be filed by individuals and entities with total annual income up to Rs 50 lakh for the assessment year (AY) 2024-25.
When are ITR forms notified?
The Income Tax Department usually notifies the ITR form before the start of the next assessment year, i.e. in February or March. The purpose of notifying it ahead of time is not that it has been notified early. Rather, it means that taxpayers have more time to understand the changes made, collect the necessary documents and file their returns with more accuracy.
ITR-1 form
ITR Form 1 (SAHAJ) caters to the needs of a large number of small and medium taxpayers.
SAHAJ can be filed by a resident individual whose income is up to Rs 50 lakh and who receives income up to Rs 5,000 from salary, house property, other sources (interest) and agricultural income.
ITR-4 Form
ITR Form 4 (SUGAM) is a simple form that caters to the needs of a large number of small and medium taxpayers. Sugam can be filed by individuals, HUFs and firms (other than Limited Liability Partnership (LLP)) with total income up to Rs 50 lakh and income from business and profession.
What are the main changes made in the new ITR-1 and ITR-4?
- A taxpayer filing ITR 1 is only required to indicate his choice of tax regime in the return of income. Taxpayers filing ITR 4 will have to file Form 10-IEA to opt out of the new tax regime.
- A new column has been added in the new ITR Form 1 and 4 to claim deduction under section 80CCH.
- A new section 80CCH has been added in the Finance Act 2023, which states that tax deduction for the total amount deposited in the Agniveer Corpus Fund on or after 01-11-2022 by those enrolled in the Agneepath Scheme and subscribing to the Agniveer Corpus Fund Will be eligible for.
- “Receipts in cash” column has been added in ITR-4 to claim the limit for increasing turnover.
- The Finance Act, 2023 has increased the turnover limit for opting for presumptive taxation scheme under section 44AD from Rs 2 crore to Rs 3 crore. If the receipts in cash do not exceed 5% of the total turnover or gross receipts of the previous year.
