“Discover the major changes in ITR forms for FY 2023-24 (AY 2024-2025). Highlights include new sections for retirement benefit accounts, disclosure of arrears, updates on Trading Account sections, and provisions for reporting Virtual Digital Asset (VDA) profits. Stay prepared for filing your ITR with insights into changes specific to ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7.”
The department released new ITR form for AY 2024-2025. So, to help you all a little bit, I am coming here with this article which highlight changes in each ITR which would help you to be prepared with documents during filing of ITR.
ITR-1
1. The ITR includes new section wherein the amount received from retirement benefit accounts need to be disclosed. Such amount includes pension fund, annuities etc.
2. The assesses also require to disclose arrear or any additional amount received u/s 89A under updated ITR form.
3. The ITR-1 form no longer allows the filing of returns if it is being done solely due to depositing more than Rs. 1 crore in the current account.
4. The ITR forms now reference Section 153C for returns filed in response to a notice. This reference ensures that taxpayers know the applicable legal provisions and assists the tax authorities in processing and evaluating such returns.
ITR-2
1. The ITR includes new section wherein the amount received from retirement benefit accounts need to be disclosed. Such amount includes pension fund, annuities etc.
2. The assesses also require to disclose arrear or any additional amount received u/s 89A under updated ITR form.
3. Schedule VDA introduced to report profit from Virtual Digital Assets. If the VDA income is treated as capital gains, taxpayers must provide a quarterly breakup of their gains under the Capital Gains Schedule.
4. The ITR require FII/FPIs to disclose their SEBI registration number to enhance transparency.
5. The ITR forms now reference Section 153C for returns filed in response to a notice. This reference ensures that taxpayers know the applicable legal provisions and assists the tax authorities in processing and evaluating such returns.
6. The assesses is required to disclose Donation Reference Number (ARN) now u/s 80G deduction.
7. The ITR forms incorporate significant changes due to the sunset date for Section 80-IB deduction. These changes relate to the deduction available to industrial undertakings in Jammu & Kashmir or Ladakh. Taxpayers are required to comply with the updated reporting requirements for claiming this deduction.
8. The revised ITR forms now include provisions for reporting the transfer of Tax Collected at Source (TCS) credit to another person. This reporting ensures proper documentation and tracking of TCS credits transferred between taxpayers.
ITR-3
1. The ITR includes new section wherein the amount received from retirement benefit accounts need to be disclosed. Such amount includes pension fund, annuities etc.
2. The assesses also require to disclose arrear or any additional amount received u/s 89A under updated ITR form.
3. Schedule VDA introduced to report profit from Virtual Digital Assets. If the VDA income is treated as capital gains, taxpayers must provide a quarterly breakup of their gains under the Capital Gains Schedule.
4. The income tax forms now feature a “Trading Account” section to facilitate reporting turnover and income from intraday trading. Taxpayers must provide details about their intraday trading activities within this section.
5. The ITR require FII/FPIs to disclose their SEBI registration number to enhance transparency.
6. There is change in balance sheet reporting wherein the assessee should show the detail of section 40A(2)(b) of Income Tax Act under advances heading in source of fund section.
7. The ITR forms now reference Section 153C for returns filed in response to a notice. This reference ensures that taxpayers know the applicable legal provisions and assists the tax authorities in processing and evaluating such returns.
8. The assesses is required to disclose Donation Reference Number (ARN) now u/s 80G deduction.
9. The ITR forms incorporate significant changes due to the sunset date for Section 80-IB deduction. These changes relate to the deduction available to industrial undertakings in Jammu & Kashmir or Ladakh. Taxpayers are required to comply with the updated reporting requirements for claiming this deduction.
10. The revised ITR forms now include provisions for reporting the transfer of Tax Collected at Source (TCS) credit to another person. This reporting ensures proper documentation and tracking of TCS credits transferred between taxpayers.
ITR-4
1. The ITR includes new section wherein the amount received from retirement benefit accounts need to be disclosed. Such amount includes pension fund, annuities etc.
2. The assesses also require to disclose arrear or any additional amount received u/s 89A under updated ITR form.
3. Schedule VDA introduced to report profit from Virtual Digital Assets. If the VDA income is treated as capital gains, taxpayers must provide a quarterly breakup of their gains under the Capital Gains Schedule
The assesses will have to provide information about income from overseas retirement funds while calculating their net salary.
4. The income tax forms now feature a “Trading Account” section to facilitate reporting turnover and income from intraday trading. Taxpayers must provide details about their intraday trading activities within this section.
5. The ITR forms now reference Section 153C for returns filed in response to a notice. This reference ensures that taxpayers know the applicable legal provisions and assists the tax authorities in processing and evaluating such returns.
ITR-5
1. Schedule VDA introduced to report profit from Virtual Digital Assets. If the VDA income is treated as capital gains, taxpayers must provide a quarterly breakup of their gains under the Capital Gains Schedule
2. The income tax forms now feature a “Trading Account” section to facilitate reporting turnover and income from intraday trading. Taxpayers must provide details about their intraday trading activities within this section.
3. The ITR require FII/FPIs to disclose their SEBI registration number to enhance transparency.
4. The ITR forms now reference Section 153C for returns filed in response to a notice. This reference ensures that taxpayers know the applicable legal provisions and assists the tax authorities in processing and evaluating such returns.
5. The assesses is required to disclose Donation Reference Number (ARN) now u/s 80G deduction
6. The ITR forms incorporate significant changes due to the sunset date for Section 80-IB deduction. These changes relate to the deduction available to industrial undertakings in Jammu & Kashmir or Ladakh. Taxpayers are required to comply with the updated reporting requirements for claiming this deduction.
7. The revised ITR forms now include provisions for reporting the transfer of Tax Collected at Source (TCS) credit to another person. This reporting ensures proper documentation and tracking of TCS credits transferred between taxpayers.
8. In case of a change in partnership, firms must make a further disclosure in the ITR forms. This disclosure ensures that any changes in the partnership are duly reported and recorded for tax purposes.
ITR 6
1. Schedule VDA introduced to report profit from Virtual Digital Assets. If the VDA income is treated as capital gains, taxpayers must provide a quarterly breakup of their gains under the Capital Gains Schedule.
2. Schedule Self occupied property has been omitted from the ITR 6 so that companies cannot indicate self occupied property.
3. The schedule OS no longer require to show dividend u/s 115BD.
4. The ITR forms now reference Section 153C for returns filed in response to a notice. This reference ensures that taxpayers know the applicable legal provisions and assists the tax authorities in processing and evaluating such returns.
5. The assesses is required to disclose Donation Reference Number (ARN) now u/s 80G deduction.
6. The ITR forms incorporate significant changes due to the sunset date for Section 80-IB deduction. These changes relate to the deduction available to industrial undertakings in Jammu & Kashmir or Ladakh. Taxpayers are required to comply with the updated reporting requirements for claiming this deduction.
7. The revised ITR forms now include provisions for reporting the transfer of Tax Collected at Source (TCS) credit to another person. This reporting ensures proper documentation and tracking of TCS credits transferred between taxpayers.
ITR 7
1. Schedule VDA introduced to report profit from Virtual Digital Assets. If the VDA income is treated as capital gains, taxpayers must provide a quarterly breakup of their gains under the Capital Gains Schedule.
2. The ITR forms now reference Section 153C for returns filed in response to a notice. This reference ensures that taxpayers know the applicable legal provisions and assists the tax authorities in processing and evaluating such returns.
3. The revised ITR forms now include provisions for reporting the transfer of Tax Collected at Source (TCS) credit to another person. This reporting ensures proper documentation and tracking of TCS credits transferred between taxpayers.
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Your article on changes in various ITR is very useful. with regard to TCS collected @ 1% of sale of assets of a firm and wrongly deposited by the diductor is to be reported in the return. can we mention any where for tax deducted in 2016 and wrongly deposited in the curreent year return as there was no such provision in the previous return forms