The Income Tax Department has released new Income Tax Return (ITR) forms for the financial year 2024-25 and assessment year 2025-26. In the new ITR-1 form, taxpayers will have to indicate whether they have chosen the old or new tax regime. This has become a default option after the implementation of the new concessional tax regime. Let us know about the new rules.
New Delhi. The Income Tax Department has released new Income Tax Return (ITR) forms for the financial year 2024-25 and assessment year 2025-26. This year some changes have been made in these forms. The deadline for filing income tax is July 31. In this article, we are going to know about the changes made in the new ITR Form.
What changed in ITR-1 form?
In the new ITR-1 form, taxpayers will have to indicate whether they have chosen the old or new tax regime. This has become a default option after the implementation of the new concessional tax regime. However, taxpayers still have the provision to opt out and remain in the old regime by filing Form 10-IEA while filing ITR-4.
ITR-1 is a simplified form for individuals with simple income structure. It does not cater to income from business or profession, capital gains or individuals claiming double taxation relief. Additionally, there are other eligibility criteria, such as being a resident individual, total income up to Rs 50 lakh, agricultural income up to Rs 5,000 and owning only one house property.
ITR-4 for whom?
ITR-4 (SUGAM) is specifically designed for individuals, HUFs and firms (other than Limited Liability Partnership) who have opted for the presumptive taxation scheme under section 44AD or 44AE of the Income Tax Act.
There is ease in criteria for businesses opting for presumptive taxation under Section 44AD. A new ‘Receipts in cash’ column has been added to disclose cash turnover or cash gross receipts. The cash turnover limit for this scheme has been increased from Rs 2 crore to Rs 3 crore. However, there is a condition that the cash receipts should not exceed 5% of the total turnover or gross receipts of the previous year.
These are the new rules regarding ITR-6
The ITR-6 used by companies has also undergone changes requiring additional details. This form will now require some additional details from companies, including Legal Entity Identifier (LEI), MSME registration number, reasons for tax audit under section 44AB, disclosure of virtual digital assets, winnings from online games taxable under section 115BBJ. Is included.
Additionally, audit reports under section 44AB (tax audit report) and section 92E (transfer pricing report) will be required to mention the acknowledgment number and UDIN.
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