ITR Forms: This time, the forms were provided three months ahead of the fiscal year's conclusion. Find out what changed

 ITR Forms: This time, the forms were provided three months ahead of the fiscal year's conclusion. Find out what changed

ITR Forms: This time, the forms were provided three months ahead of the fiscal year's conclusion. Find out what changed

ITR Forms: If you are a taxpayer who prefers the previous tax system with its range of exemptions, you will need to file your taxes with extra caution this time around. For FY 2023–24 (Assessment Year 2024–25), taxpayers will need to expressly state that they do not want to choose the new, minimal exemption tax regime. In actuality, the new tax system is now the default one with the introduction of the Finance Act 2023.

ITR Forms: If you are a taxpayer who prefers the previous tax system with its range of exemptions, you will need to file your taxes with extra caution this time around. For FY 2023–24 (Assessment Year 2024–25), taxpayers will need to expressly state that they do not want to choose the new, minimal exemption tax regime. In actuality, the new tax system is now the default one with the introduction of the Finance Act 2023. This implies that your tax computations will be performed automatically under the new tax regime if you choose no tax system at all. It becomes vital to carefully choose the previous tax structure as a result.

The choice of tax regime has been included into the new ITR-1 form, according to Jesus Sehgal, head of tax markets at AKM Global, a tax and consulting organization. In contrast, you won't be able to choose not to participate in the new tax system if you fill out the ITR-4 form. You must fill out Form 10-IEA in order to leave.

"Would you like to use the section 115BAC(6) option to opt out of the new tax regime?" Should you choose "No" in response to this question on the updated ITR form, the terms and circumstances of the recently implemented tax system will be enforced.

ITR Form-1 (Sahaj) and ITR-4 (Sugam) were made available by the Income Tax Department on Friday. The new form has amended questions on the new tax policy. Prior to last year, taxpayers were required to specify on the form whether they preferred the new arrangement.

ITR forms were released well in advance.

This time, the ITR form for the fiscal year 2023–24 (assessment year 2024–25) was announced somewhat early by the Central Board of Direct Taxes (CBDT). Professionals, companies, and salaried people may all use these forms. The letter states that the revised forms will be effective as of April 1, 2024.

By making the form available before the end of the fiscal year, consultants and taxpayers will be better able to anticipate and plan for the requirements that may arise when the FY 2023–2024 ITR filing window begins.

The director and creator of the tax consulting company TaxBirable, Chetan Chandak, said that "early issuance of ITR forms can help taxpayers file returns promptly at the end of the financial year." Generally, taxpayers using ITR-1 or ITR-4 forms have until July 31 to file their taxes.

"Until a few years ago, these forms were issued in April/May, and the utility (software that helps in filling the forms) for filling the forms on the income tax portal was released in June," said Vivek Jalan, partner at Tax Connect Advisory, a tax consulting business. Since it was released in 2015, taxpayers have had to act quickly if there were any changes.