This time the Income Tax Department has notified ITR-1 and ITR-4 much earlier. Last year, the Income Tax Department had issued the notification of ITR form after Budget 2023. This time they have been notified much earlier.
Not many modifications have been made in the new ITR-1 and ITR-4 but minor adjustments have been made in the ITR form.
The Central Board of Direct Taxes (CBDT) has notified ITR-1 (Sahaj) and ITR-4 (Sugam) forms for the financial year 2023-24 (assessment year 2024-25). The Income Tax Department has also made some changes in Sahaj and Sugam. Here in this article we are giving detailed information about these changes.
ITR-1 (Sahaj)
This form is quite simple, which is usually done by individuals having salary, a house-property, family pension and interest from other sources (bank or post office savings) and agricultural income up to Rs 5000 to fill ITR. This form can be filled only by individuals with annual income up to Rs 50 lakh.
ITR-1 form is not for Resident Not Ordinarily Resident (RNOR) or Non-Resident Indians (NRI) category taxpayers.
Along with this, this form cannot be filled for filing ITR for income earned from sources like lottery, race horse or legal gambling.
Those having taxable capital gains, investments in unlisted equity shares, income from business or profession or directors of a company cannot file ITR-1 form.
Changes in ITR-1
Some minor modifications have been made in the new ITR 1 issued for assessment year 2024-25. In this, a new field 80CCH has been added in Type C – Deduction and Taxable Total Income. Under this, you can get 100 percent tax exemption for contribution to Agneepath Scheme.
Along with this, Part E- Other information has been included, in which taxpayers will have to give details of all their active bank accounts.
ITR-4 (Sugam)
ITR-4 form is applicable to Hindu Undivided Families (HUFs) and Firms (LLPs) with annual income up to Rs 50 lakh who are calculating presumptive tax (section 44AD, 44ADA, or 44AE).
Along with this, with the help of ITR-4 (Sugam), contractual IT professionals, tuition teachers (academic, dance and drawing) or such home-based professionals file returns under section 44DA.
Like ITR-1, ITR-4 is not for RNORs and NRIs.
Through this form, the person filing ITR can calculate the total income and tax on it on the basis of estimate. And they are exempted from audit of accounts.
Changes in ITR-4
Talking about changes in ITR 4, taxpayers will have to divide the turnover into three categories under section 44AD and 44ADA. Taxpayers will have to give details of revenue received in cash as well as other modes such as account pay check or account pay bank draft or under the electronic clearing system.
With this, there will be no need to enter document identity number or date on notice under section 139 (9) /142 (1)/148/153C or return filed under section 119 (2) (B).
