Income Tax News: The Central Board of Direct Taxes (CBDT) has recently unveiled the Income Tax Return (ITR) forms for the financial year 2023-24. These forms, numbered 1 to 6, are set to take effect from April 1, 2024, ushering in a slew of significant modifications aimed at streamlining the tax reporting process.
Major Revisions Across ITR Forms
One of the pivotal modifications pertains to the eligibility criteria for certain ITR forms, particularly ITR-1 and ITR-4. These forms are now designated for resident individuals with a total income of up to ₹50 lakh. This change ensures that taxpayers falling within this income bracket can avail themselves of the simplified reporting mechanisms provided by these forms.
Change in Tax Regime Declaration for ITR 1 Filers
Taxpayers filing ITR 1 are now required to specify their preferred tax regime directly in the return of income. This alteration is particularly significant as the new tax regime is slated to become the default option.
Form 10-IEA Requirement for ITR 4 Filers
For individuals filing ITR 4 (SUGAM), an additional step has been introduced. Taxpayers opting for this form will now need to submit Form 10-IEA to opt out of the new tax regime, providing them with greater flexibility in choosing their taxation approach.
Reporting Section 80CCH Deductions in ITR 1 and 4
Both ITR 1 and 4 now feature a dedicated column for reporting deductions eligible under section 80CCH of the Income-tax Act. This provision specifically caters to individuals enrolled in the Agnipath Scheme and subscribers to the Agniveer Corpus Fund post-November 1, 2022.
Cash Turnover Disclosure in ITR 4
ITR 4 filers will now be required to disclose cash turnover or cash gross receipts, with a focus on ensuring compliance with turnover threshold limits under Section 44AD and Section 44ADA of the Income Tax Act.
Enhanced Reporting Requirements for Companies in ITR-6
ITR-6, tailored for companies, introduces additional reporting obligations, including details such as Legal Entity Identifier (LEI), MSME registration number, and disclosure of winnings from online games taxable under section 115BBJ.
Acknowledgement Number and UDIN Requirement in ITR-6
Companies filing ITR 6 must furnish acknowledgement numbers and Unique Document Identification Numbers (UDIN) for audit reports under section 44AB and section 92E.
LEI Requirement for Refund via ITR-6
Companies seeking refunds of ₹50 crore or more are mandated to provide the Legal Entity Identifier (LEI) as part of their filing requisites.
Clauses for Timely Payments to MSMEs in ITR-6
Additional clauses have been incorporated in ITR 6 to ensure timely payments to micro or small enterprises, thereby promoting adherence to payment deadlines specified under the MSME Act.
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