The income-tax (I-T) department has rolled out new income tax return (ITR) forms for the financial year (FY) 2024-25 and assessment year (AY) 2025-26, bringing along a few changes to simplify tax compliance and enhance transparency in tax reporting. One notable change in the new ITR-1 form is the requirement for taxpayers to specify whether they prefer the old or new tax regimes.
The new concessional tax regime has become the default option, but taxpayers can choose to opt-out and continue with the old regime by filing Form 10-IEA while submitting the ITR-4 form. ITR-1 is designed for taxpayers with simple income tax return structures, excluding individuals with income from profession or business, capital gains, or those claiming double taxation relief.
Eligibility criteria for ITR-1 include being a resident individual, having a total income up to Rs 50 lakh, having agriculture income up to Rs 5,000, and owning only one house property. On the other hand, ITR-4 (SUGAM) caters to individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships) opting for the presumptive taxation scheme under Sections 44AD or 44AE of the Income-Tax Act, 1961.
There are some significant additions in the ITR-1 and ITR-4 forms, including a new column for disclosing the amount eligible for deduction under Section 80CCH of the ITA. Additionally, businesses opting for presumptive taxation under Section 44AD will benefit from eased criteria.
A new ‘receipts in cash’ column has been introduced to disclose cash turnover or cash gross receipts, with the cash turnover limit raised from Rs 2 crore to Rs 3 crore, provided cash receipts do not exceed 5% of the total turnover or gross receipts of the previous year.
ITR-6, used by companies, now requires additional details, including Legal Entity Identifier (LEI), Micro, Small, and Medium Enterprises (MSME) registration number, reasons for tax audit under Section 44AB, disclosure of winnings from online games taxable under Section 115BBJ, and virtual digital assets.
Furthermore, the acknowledgement number and Unique Document Identification Number (UDIN) for audit reports under Section 44AB and Section 92E are mandatory. Companies seeking a refund of Rs 50 crore or above must provide the Legal Entity Identifier (LEI). The deadline for income-tax filing for individuals is July 31, 2024.
To ensure timely payments to MSMEs, a new clause disallows deductions under Section 43B of the ITA for any sums payable to micro or small enterprises not paid within the specified time window of the MSME Act. These changes aim to simplify tax compliance and promote better transparency in tax reporting, ensuring a smoother process for taxpayers and enhancing overall efficiency in the tax system.
🚀 Ready to level up your finances? Say goodbye to tax woes with Savingz! 🎉
Our app offers effortless tax planning & filing, saving high-income earners like you time and money.
Join now for exclusive CA👩🏻💼 call with us and start maximizing your wealth today! 💰📲 Download Our App Link: https://savz.live/app
Savings starts with Savingz.
A word from our Founder 🚀
