The Income Tax Department of India has released the ITR Forms for Assessment Year (AY) 2024-25, featuring significant changes and additional details. This guide will help you understand the key points and changes in the ITR Forms, along with important filing deadlines and consequences of late filing.
Overview of ITR Forms for AY 2024-25
The ITR forms have been designed to accommodate various taxpayer categories, including individuals, HUFs, companies, and trusts. Here is a summary of the key points and changes in the ITR Forms:
| ITR Form | Eligibility | Key Features |
|---|---|---|
| ITR-1 (SAHAJ) | Resident individuals with total income up to INR 50 lacs. Income from salary, pension, one house property, and other sources (excluding horse racing). | - Includes income from salary, pension, one house property, and other sources. • Exempt income up to INR 5,000 is allowed. |
| ITR-2 | Individuals and Hindu Undivided Families (HUFs) not eligible for ITR-1. Income from more than one house property, horse racing, gambling, lotteries, and clubbed income. | - Additional details such as Legal Entity Identifier (LEI) details, contributions to political parties, and deductions for maintenance of a dependent with a disability. |
| ITR-3 | Individuals with business or professional income. Mandatory for those whose income is taxable under “profits and gains of business or profession”. | - Details of business income, alternative tax regime under Section 115BAC, and additional disclosures for non-residents. |
| ITR-4 (SUGAM) | Resident individuals, HUFs, and firms (excluding LLP) with total income up to INR 50 lacs. Business or profession income computed under sections 44AD, 44ADA, or 44AE. | - New field for reporting receipts in cash • Available to freelancers under sections 44AD, 44AE, or 44ADA. |
| ITR-5 | For 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. | - Not available to individuals, corporations, HUFs, and those filing under sections 139(4A), 139(4B), 139(4C), or 139(4D). |
| ITR-6 | Companies registered under the Indian Companies Act of 1956 or any other law, even if they are not claiming exemption under Section 11. | - Electronic filing is mandated for specific sections. |
| ITR-7 | Charitable/religious trusts, political parties, scientific research institutions, and universities/colleges/institutions/Khadi and village industries requiring exemptions under various sections. | - Electronic filing is mandated for specific sections. |
Important Updates
New ITR Forms Release:
- The new ITR forms for AY 2024-25 were released in early February 2024 by the Central Board of Direct Taxes (CBDT).
- Filing all ITR Forms 1 to 6 is effective from April 1, 2024.
E-filing Activation:
- E-filing for ITR-1, ITR-2, and ITR-4 began on April 1, 2024.
Filing Deadlines:
- The last date for filing income tax returns for FY 24/AY 25 is July 31, 2024.
- For individuals subject to income tax audits and those with business income, ITR-3 should be filed by October 31, 2024.
- If you miss the due date, a belated return can be filed before December 31, 2024.
Tax Regime Choice:
- In ITR-1 and ITR-4, taxpayers can indicate their tax regime choice and file Form 10-IEA to opt out of the new tax regime.
Additional Requirements:
- Legal Entity Identifier (LEI) details, Audit Report acknowledgment numbers, Unique Document Identification Number (UDIN), disclosures for cash receipts, and more are required in the relevant forms.
Filing Deadlines for FY 2023-24 (AY 2024-25)
| Category of Taxpayer | Due Date for Tax Filing |
|---|---|
| Individual / HUF / AOP / BOI (books of accounts not required to be audited) | 31st July 2024 |
| Businesses requiring audit | 31st October 2024 |
| Businesses requiring transfer pricing reports | 30th November 2024 |
| Revised return | 31st December 2024 |
| Belated/late return | 31st December 2024 |
| Updated return | 31st March 2027 |
What Happens if You Miss the ITR Filing Deadline?
- Interest (Section 234A): You will have to pay interest at a rate of 1% per month or part of a month on the unpaid tax amount.
- Late Fee (Section 234F): A late fee of Rs. 5,000 will be imposed, which is reduced to Rs. 1,000 if your total income is below Rs. 5 lacs.
- Loss Adjustment: You will not be allowed to carry forward losses if you miss filing your ITR before the deadline.
- Belated Return: You can file a belated return after the due date but before December 31, 2024, with penalties.
- Updated Return: If you miss the 31st December deadline, you can still file an updated return (ITR U) within two years from the end of the relevant assessment year, subject to conditions.
Understanding Financial Year (FY) and Assessment Year (AY)
- Financial Year (FY): The period between April 1, 2023, and March 31, 2024, during which income is earned.
- Assessment Year (AY): The period between April 1, 2024, and March 31, 2025, during which income earned in FY 2023-24 is assessed and tax returns are filed.
Key Differences Between ITR-1 and ITR-2
| Criteria | ITR-1 | ITR-2 |
|---|---|---|
| Applicant Type | Individuals (resident) | Individuals (resident or non-resident) and HUFs |
| Income from Salary/Pension | Up to INR 50 lacs | More than INR 50 lacs |
| Income from Other Sources | Excluding horse racing, gambling, lotteries, etc. | Including horse racing, gambling, lotteries, etc. |
| Exempt Income | Up to INR 5000 | More than INR 5000 |
| Income from Property | Up to 1 house | More than 1 house |
Conclusion
The new ITR Forms for AY 2024-25 aim to streamline tax filing 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.
