The modifications made to the Income-tax Act, 1961, as detailed in the Finance Act, 2023, are the main source of the new revisions included in the AY 2024–25 ITR forms.
The updated ITR forms for the AY 2024–2025 aim to gather more data to enhance transparency and comply with the Finance Act 2023. A few of the changes are the addition of Legal Entity Identifier (LEI) information, Audit Report acknowledgement numbers, Unique Document Identification Number (UDIN) information, disclosures on cash payments, the MSME Act of 2006, and online gaming wins.
India’s Income Tax Return Forms (ITR-1 to ITR-7)
ITR-1
ITR-1 (SAHAJ) is only intended for those with basic income structures; it does not include capital gains, income from a company or profession, or anyone requesting exemption from double taxes. A resident individual must meet all eligibility requirements, which include having a total income of up to INR 5 million, income from agriculture of up to INR 5000, and owning just one residential property.
Key Differences Between ITR-1 and ITR-2
| Key Differences Between ITR-1 and ITR-2 | ||
| Criteria | ITR- 1 | ITR-2 |
| Applicant type | Individuals (resident or non-resident) | Individuals (RoR, RNoR & NR) and Hindu Undivided Families (HUFs) |
| Individual income from salary/pension within a FY | Up to INR 5 million | More than INR 5 million |
| Income from other sources | Except income from things like horse racing, gambling, lotteries, etc. | Including activities like lotteries, gambling, horse racing, card games, etc. |
| Exempt income | Up to INR 5000 | More than INR 5000 |
| Income from property | Up to 1 house | More than 1 house |
ITR-2
Those individuals or Hindu Undivided Families (HUFs) who are not qualified for ITR-1 must file ITR-2 forms. The requirements include not having a commercial or professional source of income, not receiving any sort of compensation from a partnership company, such as interest, bonuses, commissions, or other forms of payment, and not having another person’s income pooled. Contributions to political parties, LEI information, and deductions for the support of a dependent with a handicap are among the extra information in ITR-2.
ITR-3
ITR-3 is designed for those who earn money from their businesses or professions. For those whose income is subject to tax under the “profits and gains of business or profession,” such as interest, salary, bonus, commission, or compensation, ITR-3 is required.
ITR-4
For residents, HUFs, and businesses (but not LLPs) with a combined income of up to INR 5 million, as well as business or professional revenue calculated under sections 44AD, 44ADA, or 44AE of the Income-tax Act, the ITR-4 (SUGAM) is intended. Notably, for individuals to whom the form applies, a new field labelled “receipts in cash” has been added to Schedule “BP—details of income from business or profession.”
Freelancers who get payment under sections 44AD, 44AE, or ADA may also enrol in this plan, provided that their gross income does not exceed INR 5 million.
The Finance Act 2023 increased the turnover threshold limit from INR 20 million to INR 3 million to select the presumptive taxation scheme under Section 44AD, provided that the cash receipts do not exceed five per cent of the total turnover or gross receipts for the prior year.
ITR-5
Specific types of taxpayers—Association of Persons (AOPs), Limited Liability Partnerships (LLPs), companies, Body of Individuals (BOIs), Estate of Deceased, Artificial Juridical Person (AJP), Business Trust, Estate of Insolvent, and Investment Funds—are intended to use the ITR-5 form. The ITR-5 Form is not filed by businesses, HUFs, individuals, or anybody filing an income tax return using the new ITR Form 7.
ITR-6
Businesses incorporated under the Indian Companies Act of 1956 or any other legislation, even if they do not intend to claim the exemption under section 11 (revenue from property retained for charitable or religious purposes), must file Form ITR-6.
ITR-7
ITR-7 is for political parties, scientific research organizations, charitable and religious trusts, and village and university companies that need exemptions from certain areas. Certain provisions require electronic filing.
According to several tax experts in India, submitting tax returns is made easier by default under the new tax system, with the option to switch for individuals who prefer the previous regime.
Due date for Filing Income Tax Returns (ITR) (AY 2024-25)
The due date for submitting the Income Tax Return (ITR) for FY 2023–24 (AY 2024–25) is covered here. The Income Tax Return (ITR) e-filing for FY 2023–24 (AY 2024–25) began on April 1, 2024.
| Category of Taxpayer | Due Date for Tax Filing |
| Individual / Hindu Undivided family/ AOP/ BOI who are not required to get their books of accounts audited | 31st July 2024 |
| Businesses (Requiring Audit) | 31st October 2024 |
| Businesses liable for transfer pricing reports (in case of international/specified domestic transactions) | 30th November 2024 |
| Revised return | 31 December 2024 |
| Belated/late return | 31 December 2024 |
| Updated return | 31 March 2027 (2 years from the end of the relevant AY) |
What Takes Place If the ITR Filing due date Is Missed?
- Interest: By Section 234A, you will be required to pay interest on the amount of unpaid taxes at a rate of 1% each month or part of a month if your return is filed after the due date.
- Late fee: If you file after the due date, Section 234F charges a Rs. 5,000 late cost. This amount is waived to Rs. 1,000 when total income is not exceeding Rs. 5 Lakhs.
- Loss Adjustment: If you have lost money on the stock market, mutual funds, real estate, or any of your enterprises, you can carry those losses forward and deduct them from your income the following year. If, on the other hand, you fail to file your ITR before the due date, you will not be permitted to carry forward these losses.
- Belated Return: You may file a return after the due date if you miss the ITR filing due date. This type of return is known as a delayed return. You cannot, however, carry forward any losses for future adjustments, and you will still be responsible for paying the interest and late fee.
- Revised return: If, for unavoidable circumstances, you are unable to file your return by December 31st, you may still file an updated (ITR U) return if you meet the requirements outlined in that document.
Key Changes in the ITR Forms AY 2024-25
Through Notification No. 105/2023, dated 22-12-2023, Notification No. 16/2024, dated 24-01-2024, and Notification No. 19/2024, dated 31-01-2024, the CBDT has made public the Income-tax Return (ITR) Forms (also known as the “New ITR Forms”) for the Assessment Year 2024–25.
The updated versions of ITR forms continue to apply to various taxpayers. Nevertheless, taxpayers must provide more information on the new forms. Furthermore, the Finance Act 2023’s modifications have resulted in several revisions to the ITR forms.
Read ahead to know about the key changes in the Income Tax Return Forms for AY 2024-25
The application of ITR forms remains unchanged.
The CBDT has not changed the requirements for the application of ITR forms to various taxpayer classes and return filing procedures.
ITR can be verified via EVC by individuals or HUFs who are liable for audit.
With the amendment of Rule 12, individuals and HUF subject to Section 44AB tax audits can now use an electronic verification number to confirm the income return. Before, they could only use a digital signature to confirm the refunds.
Option to choose between Regimes
The Finance Act 2023 has modified the terms of Section 115BAC to establish it as the default tax regime for individuals, HUFs, AOPs, BOIs, and AJPs as the assessee. An assessee must specifically choose to be taxed under the old tax regime if he does not wish to pay taxes under the new tax regime.
Legal Entity Identifier (LEI) details
According to RBI regulations, remitter and beneficiary LEI information must be included in any single payment transaction involving an entity (a non-individual) that exceeds INR 50 crores. This is true for financial transactions made using the RTGS and NEFT payment systems.
The new ITR Forms feature a field for providing the LEI number’s data to comply with RBI rules. If the taxpayer is requesting a refund of INR 50 crores or more, he must provide the LEI data.
To claim the increased turnover limit, the “Receipts in Cash” field was added.
If cash receipts do not exceed 5% of total turnover or gross receipts for the preceding year, the Finance Act 2023 has raised the turnover threshold limit from INR 2 crores to INR 3 crores for choosing the presumptive taxation scheme under Section 44AD.
In the same vein, Section 44ADA was modified to raise the gross revenues threshold limit from INR 50 lakhs to INR 75 lakhs in cases when cash receipts do not surpass 5% of the gross receipts for the preceding year.
Disclosure of the amount owing to MSME beyond the due date
To guarantee that any amount payable to a micro or small firm after the due date outlined in Section 15 of the Micro, Small and Medium Enterprises Development Act 2006 (MSME Act) is not recognized as a deduction, the Finance Act 2023 added a new clause (h) to Section 43B.
Providing the UDIN and Audit Report acknowledgement number
Companies must supply the UDIN and the audit report’s acknowledgement number when sharing information concerning audits carried out under Section 44AB, including audits under Section 92E.
Information on the Capital Gains Accounts Scheme being disclosed
The taxpayer’s capital gains are the subject of the Schedule-CG of ITR forms. This schedule requests several pieces of information, such as the capital item sold, the buyer’s data, and the amount paid to claim exemptions.
Disclosure of Online Gaming Winnings Subject to Section 115BBJ Charges
With effect from AY 2024–2025, the Finance Act 2023 has added a new Section 115BBJ to tax gains from online gaming. With effect from April 1, 2023, a comparable Section 194BA has also been added to allow for the deduction of taxes on net wins from online gaming. Therefore, starting on or after 1-4-2023, all gains from online gaming will be taxed under Section 115BBJ and subject to TDS under Section 194BA.
Information on contributions to political parties is sought after by the new Schedule 80GGC
Contributions to an electoral trust or political party are deductible under Section 80GGC. The new ITR forms, in contrast to the older ones, demand the disclosure of more details than merely the amount that can be deducted under Section 80GGC.
The application “Schedule – Tax Deferred on ESOP” requests the qualifying startup’s PAN and DPIIT Registration Number.
In the year of the securities’ allocation, an employer’s gift of free or discounted securities to an employee under the ESOP plan is subject to perquisite tax. However, if an employee of an eligible startup is employed, the obligation to pay or deduct tax on such a prerequisite is delayed.
The addition of Schedule 80U, which allows for deductions if the assessee is a person with a handicap
Residents who are disabled or have a serious disability are eligible for a deduction under Section. Under this provision, an individual with a handicap or a severe disability may deduct an absolute amount of INR 75,000 or INR 1,25,000, respectively.
The new Schedule 80DD requests information on the person with a disability’s maintenance and medical care.
A resident person or HUF who pays medical expenses or an insurance premium for a family member with a disability is eligible for a deduction under Section 80DD. Under this provision, an individual with a handicap or a severe disability may deduct an absolute amount of INR 75,000 or INR 1,25,000, respectively.
Reporting of dividend income
A proviso was added to Section 115A(1)(a)(A) of the Finance Act, 2023, amending the terms of Section 115A. This proviso states that dividend income received from a unit in an IFSC, as mentioned in Section 80LA(1A), will be subject to a lower tax rate of 10% rather than 20%.
Reporting of amounts received from the business trust by a unitholder
The Finance Act, of 2023 introduced clause (xii) to Section 56(2) to prevent the dual non-taxation of certain amounts delivered by the business trusts to its unitholders.
The cost of acquiring the unit may be subtracted from the amount obtained upon redemption in the event of a redemption of units, as stipulated by the proviso to clause (xii) of Section 56(2).
To disclose revenue obtained by the unitholder by Section 56(2)(xii)
Information on the taxpayer’s bank accounts, including the choice of which account will receive income tax refunds, is required on the ITR forms.
Except for inactive accounts, taxpayers are required to reveal all bank accounts they have ever owned on the new ITR forms.
The New Schedule 80-IAC requests information on qualifying startups.
A qualifying startup may choose to take advantage of a deduction under Section 80-IAC for three consecutive assessment years out of ten years. These deductions are permitted if specific requirements are met.
A new Schedule in the New ITR-5 requests information on the deductions that businesses have claimed under Section 80-IAC.
A new Schedule 80LA that requests information from the IFSC or offshore banking unit
Deductions are allowed under Section 80LA for specific revenue received by the International Financial Services Centre (IFSC) and offshore banking units. Under this clause, a Schedule Bank, a foreign Bank, or an IFSC entity may claim a deduction. For ten consecutive assessment years, 100% of the income is deductible in the case of a bank. For ten out of the fifteen assessment years in the case of an IFSC unit, 100% of revenue is deductible.
A new “Schedule 115TD” has been added to disclose the tax due on accrued income.
Any fund or institution that is registered under Section 12AB or approved under Section 10(23C) is subject to additional income tax on the accreted income that results from failure to apply for registration renewal, conversion into a non-charitable form, or transfer of assets upon dissolution to a non-charitable institution.
The assessee is identified as an MSME.
An assessee is required under the new ITR-5 to provide information on its recognized status as a Micro, Small, and Medium Enterprise (MSME).
Option to Opt for Concessional Regime under Section 115BAE
The registration number assigned by the Micro, Small, and Medium Enterprises Development Act, 2006, must also be provided. Section 115BAE’s new field for choosing the concessional regime [ITR 5]
The Finance Act of 2023 has instituted a novel tax plan for resident cooperative organizations involved in the manufacture or manufacturing of goods. If a cooperative organization chooses to implement this plan, revenue will be subject to reduced taxation if specific requirements are met.
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FAQs
Is ITR filing open for the financial year 2024-25?
Taxpayers must submit their income tax returns by the deadline to avoid interest and penalties. The FY 2023-24 (AY 2024-25) filing date is July 31, 2024, with a late filing option until December 31, 2024.
Is it possible to file an amended return using a different form?
There is no notification of separate ITR forms needed to file an amended return. When a taxpayer receives notification for an Assessment Year, they must provide a revised return on the ITR forms for that Assessment Year. The recently notified form ITR-U must be filed with this ITR form.
How can I get my refund of income tax if it’s past due?
You may only request a refund of income taxes when you file an ITR. On the other hand, you have until December 31st of the assessment year to file a belated return if you miss the ITR filing due date. There is a Rs. 5000 penalty for the delay.
How may income tax be paid beyond the due date?
You will still be able to file your return and pay your taxes beyond the due date if you failed to do so before. However, when submitting an ITR, there will be interest and a late filing penalty. There is a Rs.5000 penalty for the late filing of the return. The cost is Rs 1,000 if the individual’s total income is less than Rs. 5 lakhs.
Which clause in the Income Tax Act permits someone to submit their ITR after the due date?
A belated return, or one filed beyond the due date, is permitted under Section 139(4) of the tax code. There is a penalty of a maximum of Rs. 5,000 for late return submission.
How many income tax returns are amended before the due date?
Under Section 139(5), the taxpayer may use the Revised return to amend the first return that was submitted.
The amended return may be submitted using the same process as the first return. On the other hand, Section 139(5) requires the taxpayer to file the ITR. While editing the return, the full e-verification procedure must be finished.
How many income tax returns are amended after the due date?
A late return may be submitted by December 31st of the assessment year at the latest. Once this day has passed, taxpayers are unable to file any returns.
If an extraordinary circumstance prevented you from filing the return, you can still request under Section 119 from your A.O. authorization to submit previous returns.
What will happen if the income tax return is not submitted by the due date?
A belated income tax return may be filed if you neglect to file your tax return by the due date. However, filing returns beyond the due date would result in a penalty of up to Rs. 5,000 for late filing. The amount owed is Rs. 1,000 if the person’s total income is less than Rs. 5 lakhs.
What is the due date for submitting trust returns?
For trusts for FY 2023–2024 whose accounts are exempt from audit requirements, the due date for filing returns is July 31, 2024. The due date for filing an ITR for the trust whose accounts need to be audited is October 31, 2024.
The due date for filing an ITR for the trust that is mandated to provide a report in Form No. 3CEB under section 92E is November 30, 2024.
What is the due date for filing an ITR?
Individuals can file their ITR until July 31 of the relevant assessment year, while taxpayers whose accounts are subject to an audit have until October 31 of the same year.
