The Income Tax Department of India has released the ITR Forms for Assessment Year (AY) 2024-25, which include significant changes and additional details. Here is a summary of the key points and changes in the ITR Forms:
ITR 1 (SAHAJ)
Eligibility: For resident individuals with total income up to INR 5 million, including income from salary, pension, one house property, and other sources (excluding horse racing
Key Features: Includes income from salary, pension, one house property, and other sources. Exempt income up to INR 5,000 is allowed
ITR 2
Eligibility: For individuals and Hindu Undivided Families (HUFs) who are not eligible forITR-1. This includes those with income from more than one house property, income from other sources including horse racing, gambling, lotteries, etc., and those who have income to be clubbed with another person’s income
Key Features: Includes additional details such as LEI details, contributions to political parties, and deductions for the maintenance of a dependent with a disability
ITR 3
Eligibility: For individuals with business or professional income. Mandatory for those whose income is taxable under the “profits and gains of business or profession”.
Key Features: Includes details of business income, alternative tax regime under Section 115BAC, and additional disclosures for non-residents
ITR 4 (SUGAM)
Eligibility: For resident individuals, HUFs, and firms (excluding LLP) with a total income up to INR 5 million and business or profession income computed under sections 44AD, 44ADA or 44AE of the Income-tax Act.
Key Features Includes a new field for reporting receipts in cash and is available to freelancers who receive income under sections 44AD, 44AE, or ADA.
ITR 5
Eligibility: For a specific class of taxpayers, including Association of Persons (AOPs), LLPs, firms, Body of Individuals (BOIs), Estate of deceased, Artificial Juridical Person (AJP), Business Trust, Estate of Insolvent, and Investment Funds
Key Features: Not available to individuals, corporations, HUFs, and those filing under sections 139(4A), 139(4B), 139(4C), or 139(4D).
ITR 6
Eligibility: For companies registered under the Indian Companies Act of 1956 or any other law, even if they are not claiming exemption under Section 11 (income from property held for charitable or religious purposes).
Key Features Electronic filing is mandated for specific sections.
ITR 7
Eligibility: For charitable/religious trusts, political parties, scientific research institutions and university/colleges/institutions/Khadi and village industries requiring exemptions under various sections
Key Features: Electronic filing is mandated for specific sections.
Conclusion: The latest ITR Forms for AY 2024-25 reflect the Income Tax Department’s efforts to streamline tax filing processes and enhance transparency. From ITR 1 to ITR 7, taxpayers can choose the form that best suits their income sources and filing requirements. Staying informed about the changes in each form is essential for seamless tax compliance and avoiding penalties.
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