ITR Filing Update: CBDT notifies ITR Forms ITR-1 And ITR-4 For AY 2024-25; Deadline To File July 31, 2024

The Central Board of Direct Taxes (CBDT) has notified the income tax return forms, ITR-1 (SAHAJ) and ITR-4 (SUGAM), for FY 2023-24 (AY 2024-25). These forms will come into effect from April 1, 2024. The last date to file ITR for FY 2023-24 (AY 2024-25) is July 31, 2024 (unless this date is extended by the government). According to a notification issued by the Income Tax Department on December 22, 2023, the last date to file ITR for FY 2023-24 (AY 2024-25) is July 31, 2024 (unless extended by the government).

Last year, the I-T department notified the ITR forms for FY 2022-23 in February 2023 - just after the announcement of Budget 2023. However, this time ITR forms have been notified 3 months before the current financial year ends on March 31, 2024.

ITR-1 (SAHAJ) is to be used by individuals meeting the below-mentioned criteria: Individuals being resident individuals, Total income of up to Rs 50 lakh, and Income sources can include - salary, income from one house property, and other sources such as interest, dividends, etc and agriculture income up to Rs 5,000.

However, one must note that an individual satisfying the above-mentioned conditions cannot use ITR-1 if the individual is a director in a company, has invested in unlisted equity shares or, where there has been TDS on cash withdrawals by the person under section 194N or income tax has been deferred on ESOP and that person is having income from sources other than those mentioned above such as capital gains, and income from two-house properties.

Applicability of ITR-4 (SUGAM):

ITR-4 (SUGAM) is applicable to individuals, Hindu Undivided Families (HUFs) whose status is resident in India and having income from business and profession. This income should not exceed Rs 50 lakh in a financial year. Further, the income must be computed under Sections 44AD, 44 ADA, and 44AE.

Those who are eligible to file for ITR-4 need to opt out of the new tax regime in case they don't want it, as the new tax regime will be the default regime in the ITR.

Why should you file ITR?

Taxpayers should file their income tax return even if their gross total income falls within the exemption limit for a number of reasons including; to claim an income tax refund from the department, to apply for a visa or a loan, to claim any carried forward losses, claim a TDS refund. Besides, ITR filing is also important if you are applying for a visa for an international trip or a credit card.