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Comprehensive Guide for ITR Forms (Form1 and Form 4) Changes 2024You should Know About

The Income Tax Department has unveiled ITR-1 (SAHAJ) and ITR-4 (SUGAM)for Assessment Year 2024-25, designed for individuals and entities with an annual total income of up to ₹50 lakh. The Central Board of Direct Taxes (CBDT's) recent introduction of Income Tax Return (ITR) Forms 1 and 4 for AY 2024-25 arrived as an unexpected yet delightful surprise, setting the stage for early tax planning. These forms will be instrumental in filing income tax returns for earnings spanning April 1, 2023, to March 31, 2024,".

This revelation brings promising changes that could significantly impact your tax planning and financial strategies. Delve into the essential alterations made in these forms to optimize deductions and financial planning. Unravel the potential benefits of these modifications, empowering you to refine your tax strategies and adapt to the evolving tax landscape effectively.

The annual updating of Income Tax Return (ITR) forms is crucial for taxpayers, aiming to comprehend alterations for Assessment Year (AY) 2023-24.

When are the ITR Forms Typically Released?

Unlike previous years when the forms were usually issued in February or March, the CBDT has taken an unprecedented step by releasing the ITR forms early. This early release aims to help taxpayers stay updated on the latest changes and provide them with ample time to prepare their documentation and file their returns accurately. The last filing date for the ITR forms is set for July 31, 2024, unless extended.

Understanding ITR Form 1 (Sahaj) Modifications

A. Overview of Form 1 Changes: An outline of modifications made in Form 1, offering a simplified view for individual taxpayers.

B. Detailed Analysis of New Sections or Fields: A comprehensive breakdown of additions or alterations in various sections, shedding light on the specifics.

C. Impact on Taxpayers and Categories Affected: Discussing how the changes affect different taxpayer categories, highlighting benefits or challenges.

Exploring Adjustments in ITR Form 4 (Sugam)

A. Overview of Form 4 Changes: An examination of the revamped Form 4, catering to small businesses and professionals.

B. Comprehensive Analysis of Updated Sections: In-depth exploration of the altered sections, elucidating the implications for relevant groups.

C. Assessing Implications for Taxpayers: Evaluating the consequences and advantages of these adjustments for taxpayers.

Latest Modificationsin the new ITR Form 1, Form 4: Key Information for AY 2024-25 you Need!

Changes in ITR-1 (SAHAJ)

ITR-1, also known as SAHAJ, is designed for individuals with simple income structures. It does not cater to individuals with income from business or profession, capital gains, or those claiming double taxation relief. To ensure a smooth tax filing process, it is crucial to understand the changes introduced in the new ITR-1 form. Here are the key modifications:

1. Disclosure of Bank Accounts: In the previous year, taxpayers are now required to disclose all their bank accounts, along with specifying the type of account.

2. Default Tax Regime: The new tax regime has been made the default option in ITR-1. If taxpayers wish to opt out of the new regime, they need to provide the necessary details.

Deduction under Section 80CCH: A new column has been added to claim deductions under section 80CCH. This provision allows individuals enrolled in the Agnipath scheme and subscribing to the Agniveer corpus fund on or after November 1, 2022, to be eligible for a 100% tax deduction on the total amount deposited in the Agniveer corpus fund.

Changes in ITR-4 (SUGAM)

ITR-4, also known as SUGAM, is specifically designed for individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships) who have opted for the presumptive taxation scheme under sections 44AD or 44AE of the Income Tax Act. Here are the key changes introduced in the new ITR-4 form:

1. "Receipts in Cash" Column: A new column has been added to ITR-4 to disclose the cash turnover in the tax return. This column allows taxpayers to claim an increased turnover threshold under the presumptive taxation scheme.

2. Enhanced Turnover Limit: Under the Finance Act of 2023, the turnover limit for opting for the presumptive taxation scheme under Section 44AD has been raised from ₹2 crore to ₹3 crore. However, this applies only if the cash receipts do not exceed 5% of the total turnover or gross receipts for the preceding year.

Also Read:- Kinds of ITR Forms in India


Benefits of Early Release of ITR Forms

The early release of the ITR forms has several advantages for taxpayers. Firstly, it provides them with more time to familiarize themselves with the new changes and understand the requirements for accurate tax filing. Secondly, it allows taxpayers to gather all the necessary documentation well in advance, reducing the chances of last-minute errors or omissions. Additionally, the extended timeline enables taxpayers to file their returns well before the deadline, avoiding any penalties or unnecessary stress.


In End of Line

The release of the updated ITR forms for the Assessment Year 2024-25 brings significant changes that taxpayers need to be aware of. From disclosing all bank accounts to the default tax regime and enhanced turnover limits, understanding these modifications is essential for a smooth tax filing process. By staying informed and preparing early, taxpayers can ensure compliance with the new requirements and file their returns accurately and on time.

Remember, it is always advisable to consult with certified tax experts or professionals for personalized guidance and advice based on your specific financial situation.


The Tax Heaven

Mr.Vishwas Agarwal✍📊, a seasoned Chartered Accountant 📈💼 and the co-founder & CEO of THE TAX HEAVEN, brings 10 years of expertise in financial management and taxation. Specializing in ITR filing 📑🗃, GST returns 📈💼, and income tax advisory. He offers astute financial guidance and compliance solutions to individuals and businesses alike. Their passion for simplifying complex financial concepts into actionable insights empowers readers with valuable knowledge for informed decision-making. Through insightful blog content, he aims to demystify financial complexities, offering practical advice and tips to navigate the intricate world of finance and taxation.

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