For the assessment year (AY) 2024-25, taxpayers are mandated to provide additional details related to cash receipts and all their domestic bank accounts, as per the latest Income Tax Return (ITR) forms notified by the Central Board of Direct Taxes (CBDT).
The ITR Form 1, also referred to as Sahaj, is applicable for resident individuals with an income of up to Rs 50 lakh. This comprises individuals receiving income from sources such as salary, one-house property, other sources (interest), and agricultural income up to Rs 5,000.
However, it cannot be filed by an individual who has taxable capital gains (short-term and long-term), has income from business or profession, has invested in unlisted equity shares or holds the position of director in a company.
For individuals, Hindu Undivided Families (HUFs), and non-Limited Liability Partnership (LLP) firms with a total income of up to Rs 50 lakh, the ITR Form 4, or Sugam, is applicable for filing. It covers income from businesses and professions, computed on a presumptive basis under Section 44ADA, 44AD or 44AE of the Income-Tax Act (ITA), 1961.
Typically, ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are relatively simpler forms that are related to a large number of small and medium taxpayers. Now, the taxpayers will be required to disclose information related to all operational bank accounts in the country from the preceding financial year, specifying each account type.
In addition, the revised return forms feature a dedicated section for deductions related to the Agniveers, which is related to young individuals serving in the armed forces under the Agnipath scheme, covered under Section 80CCH in the new income tax regime.
Generally, ITR forms for a particular financial year are notified by the end of March or early April. However, last year, the forms for FY 2022-23 (AY 2023-24) were notified in February 2023.
Meanwhile, this year, ITR forms are notified in December itself, seven months before the last date for filing them, to enable taxpayers to file returns early. The last date to file ITR for FY 2023-24 (AY 2024-25) is July 31, 2023, unless the authorities issue an extension related to this.
Rajiv is an independent editorial consultant for the last decade. Prior to this, he worked as a full-time journalist associated with various prominent print media houses. In his spare time, he loves to paint on canvas.