The Income Tax Department has notified ITR Form 1 and Form 4 for the assessment year (AY) 2024-25. These forms are used by individuals and entities with an annual total income of up to ₹50 lakh. The notification for these forms was issued by the IT Department on Friday.
As per a tax expert, the newly notified ITR forms 1 and 4 for AY 2024-25 have undergone changes. In a surprising and welcomed move, the CBDT has acted as an early Santa Claus this year by unveiling the Income Tax Return (ITR) Forms 1 and 4 for the Assessment Year 2024-25. These forms will be applicable for filing income tax returns for the previous year 2023-24, covering the period from 01-04-2023 to 31-03-2024.
When Are the ITR Forms Typically Released?
Normally, the department notifies the ITR forms before the start of the following assessment year, typically in February or March. However, this unexpected early release not only deviates from the usual timeline but also provides taxpayers with a longer period to acquaint themselves with the modifications, gather necessary documentation, and file their returns with increased accuracy.
Key Considerations for Filing Form 1 of Income Tax Return
ITR Form 1, which is Sahaj, is filed by a significant number of small and medium-sized taxpayers.
Sahaj is applicable for resident individuals with an income of up to ₹50 lakh who receive income from salary, a one-house property, other sources (such as interest), and agricultural income up to ₹5,000.
Important Information for Filing Form 4 of ITR
ITR Form 4, which is Sugam, is a simplified form designed for a large number of small and medium-sized taxpayers. Sugam can be filed by resident individuals, HUFs, and firms (excluding Limited Liability Partnerships or LLPs) with a total income of up to ₹50 lakh, including earnings from business and profession.
Key Modifications in the New ITR Form 1, Form 4
- For individuals filing ITR 1, they only need to specify their choice of tax regime within the income tax return. However, individuals filing ITR 4 will be required to submit Form 10-IEA to choose the new tax regime.
- New columns have been introduced in ITR Forms 1 and 4 to claim deductions following section 80CCH.
Through the implementation of the Finance Act of 2023, a fresh provision, Section 80CCH was introduced. This provision enables individuals who have enrolled in the Agnipath Scheme and made contributions to the Agniveer Corpus Fund after 01-11-2022, to qualify for a new tax deduction based on the entire amount deposited in the Agniveer Corpus Fund.
- A “Receipts in Cash” column has been added to ITR-4 to claim an increased turnover threshold.
Under the Finance Act of 2023, the turnover limit to qualify for the presumptive taxation scheme under Section 44AD has been increased from 2 crore to 3 crore. However, this is applicable only if the cash receipts do not surpass 5% of the total turnover or gross receipts for the preceding year.
