Income Tax Return Filing 2024: This time, what has changed for you on the ITR Forms? now make notes

Income Tax Return Filing 2024: This time, what has changed for you on the ITR Forms? now make notes

Income Tax Return Filing 2024: This time, what has changed for you on the ITR Forms? now make notes

The ITR forms ITR-1 and ITR-4 were informed by the Central Board of Direct Taxes (CBDT) around this time in December. These forms often arrive in February or March. The outcome is that taxpayers will fill out the form more easily since they will be aware of it beforehand.

each time there is a modification to the taxpayers' income tax return form. There will be some modifications to the ITR Forms this time around when you go to submit your tax return. The ITR forms ITR-1 and ITR-4 were informed by the Central Board of Direct Taxes (CBDT) around this time in December. These forms often arrive in February or March. The outcome is that taxpayers will fill out the form more easily since they will be aware of it beforehand. Tell us how many different kinds of ITR forms there are and what modifications you expect this time around.

ITR Form 1

Form 1 is filled out by Indian nationals with yearly incomes up to Rs 50 lakh. The income is inclusive of your salary, pension, and any additional sources up to Rs 50 lakh. This also covers agricultural income up to Rs 5,000. However, you are unable to fill out this form if you are a director of a company, have invested in an unlisted company, get income from capital gains, own several homes or properties, or receive income from a business.

ITR Form 2

This form is for you if your income exceeds Rs 50 lakh. This requires disclosure of multiple residential properties, capital gains or losses on investments, dividend income exceeding Rs. 10 lakh, and agricultural revenue above Rs. 5000. In addition, this form is filled out even if the PF is generating interest.

ITR Form 3

You may fill out ITR Form 3 if you are a business owner, have invested in stock unlisted shares, or are paid as a partner in a firm. In addition, you are able to fill out this form even if you get income from several properties, capital gains, bonuses, interest, horse racing, or the lottery.

ITR Form 4

Methods for HUF (Hindu Undivided Family) and Individual. Should you get income from your company or any other occupation, such as that of a doctor or lawyer, someone managing a partnership firm (other than an LLP), someone receiving income under section 44AD and 44AE, or someone receiving a salary or pension above Rs 50 lakh. This form is filled out by people. You may still fill out this form if you work as a freelancer and earn more than Rs 50 lakh a year.

ITR Form 5

For entities that have registered as firms, LLPs, AOPs, or BOIs, use ITR 5. Association of Persons and Body of Individuals also use the same form.

ITR Forms 6 and 7

ITR Form 6 is necessary for businesses that are not excluded under Section 11 of the Income Tax Act. ITR Form 7 must be completed by businesses and individuals who are required to submit returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D).

What changed in ITR Form-1 and ITR Form-4?

This time, the taxpayer submitting the ITR-1 just has to display the income return and specify his tax regime. In order to choose the new tax system, anyone who fill out Form-4 will also need to fill out a second Form 10-IEA.

In all forms, a new column has been introduced for claiming the section 80CCH deduction. This provides a tax deduction on the whole fund deposit amount for participants in the Agneepath program and subscribers to the Agniveer Corpus Fund after November 1, 2022.

To claim the higher turnover limit in ITR-4, a "Receipts in Cash" item has been introduced. The turnover threshold for choosing the presumptive taxation scheme under section 44AD was raised from Rs 2 crore to Rs 3 crore in the Finance Act, 2023 last year. The caveat is that the cash receipt must not exceed 5 percent of the gross receipts or total turnover of the preceding year. Need to be