Overview of Key Changes in ITR Forms for Assessment Year 2024-25

Introduction:

The Income Tax Department has introduced significant changes in the Income Tax Return (ITR) forms for the Assessment Year 2024-25, aimed at streamlining the filing process and ensuring compliance with tax regulations. These modifications encompass various aspects of tax reporting and incorporate amendments introduced by the Finance Act 2023. Let’s delve into the details of these changes and their implications for taxpayers.

1. Applicability of ITR Forms:

The applicability of ITR forms to different taxpayers remains unchanged in the new versions. However, additional details are now required from taxpayers to ensure comprehensive reporting.

2. Electronic Verification Code (EVC) for Audit Cases:

Individuals and Hindu Undivided Families (HUFs) subject to tax audits under Section 44AB can now verify their returns using an electronic verification code, providing them with an alternative to digital signatures. Individuals and Hindu Undivided Families (HUFs) subject to tax audits under Section 44AB can now verify their returns using an electronic verification code, providing them with an alternative to digital signatures.

3. Due Date for Filing of Return:

A new column has been introduced in ITR forms to specify the deadline for submitting the income tax return, allowing taxpayers to select the applicable due date from provided options.

4. Default Tax Regime:

The new tax regime, as per Section 115BAC, is now the default tax regime for individuals, HUFs, AOPs, BOIs, and AJPs. Taxpayers must explicitly opt out of this regime if they wish to be taxed under the old regime, with specific procedures outlined for different categories of taxpayers.

5. Legal Entity Identifier (LEI):

Taxpayers seeking refunds of INR 50 crores or more are required to furnish details of their Legal Entity Identifier (LEI) as per RBI regulations, enhancing transparency in financial transactions.

6. Reason for Tax Audit and Acknowledgment Number Requirement:

Additional details are now required from taxpayers subject to tax audits under Section 44AB, including the reason for the audit and acknowledgment numbers of audit reports and Unique Document Identification Numbers (UDINs).

7. Enhanced Turnover Limit Reporting:

A new column “Receipts in Cash” has been added to claim enhanced turnover limit under presumptive taxation schemes, facilitating accurate reporting of cash turnover or gross receipts.

8. Disclosure of MSME Payments and Capital Gains Accounts Scheme:

Taxpayers must now disclose sums payable to Micro or Small Enterprises beyond specified time limits, along with detailed information about deposits made in the Capital Gains Accounts Scheme.

9. Taxation of Online Games Winnings and Political Contributions:

Income from online games winnings under Section 115BBJ and contributions to political parties under Section 80GGC must be reported in the respective schedules, ensuring comprehensive income disclosure.

10. Deduction Schedules and Offshore Banking Units:

New schedules have been introduced for claiming deductions under Sections 80U, 80DD, 80CCH, and 80LA, along with reporting requirements for offshore banking units under Section 80LA.

Conclusion:

The changes introduced in the ITR forms for Assessment Year 2024-25 reflect the government’s efforts to enhance tax compliance and transparency. Taxpayers are advised to familiarize themselves with these amendments and ensure accurate reporting to avoid penalties and facilitate a smooth filing process.

This article provides a comprehensive overview of the key changes in the ITR forms, highlighting their significance and implications for taxpayers in the upcoming assessment year.