News Karnataka
Wednesday, April 24 2024

2024 Income Tax: New ITR Forms Feature Notable Changes

MCC Council Create a Scene Over Property Tax HikeInformation on their Tax
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The Income Tax Department has introduced new Income Tax Return (ITR) forms for the financial year 2024-25 and assessment year 2025-26, bringing several changes to streamline tax compliance.

One significant change pertains to the choice of tax regime. In the new ITR-1 form, taxpayers are required to specify whether they opt for the old or new tax regime. The new concessional tax regime has become the default option, but taxpayers can choose to remain under the old regime by filing Form 10-IEA along with their ITR-4.

ITR-1, designed for individuals with straightforward income structures, now mandates residents with a total income up to Rs 50 lakh, agriculture income up to Rs 5,000, and ownership of only one house property. It excludes individuals with income from business or profession, capital gains, or those claiming double taxation relief.

ITR-4 (SUGAM) targets individuals, HUFs, and firms under the presumptive taxation scheme as per sections 44AD or 44AE of the Income Tax Act.

Another notable change is the inclusion of a new column in ITR-1 and 4 forms for disclosing deductions under section 80CCH of the Income Tax Act. This provision caters to individuals enrolled in the Agnipath Scheme and contributing to the Agniveer Corpus Fund.

For businesses opting for presumptive taxation under section 44AD, criteria have been eased, with a new column added to disclose cash turnover. The threshold for cash turnover under this scheme has been increased to Rs. 3 crores.

ITR-6, used by companies, now requires additional details such as Legal Entity Identifier (LEI), MSME registration number, reasons for tax audit under section 44AB, and disclosure of winnings from online games taxable under section 115BBJ.

The income tax filing deadline for individuals remains July 31st. These changes aim to simplify tax compliance and enhance transparency in tax reporting.

Lastly, to expedite payments to MSMEs, a new clause disallows deductions under section 43B of the Act for sums payable to micro or small enterprises not paid within the specified time limit.

Overall, these changes aim to facilitate smoother tax filing processes and ensure fair and timely payments to various entities.

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