Income Tax News: The Income Tax Department of India has unveiled the Income Tax Return (ITR) Forms 1-6 for the Financial Year 2023–24, with the Assessment Year 2024–25. The early release of these forms, effective from April 1, 2024, is seen as a proactive step by the Central Board of Direct Taxes (CBDT) to assist taxpayers and streamline the filing process.
Key Changes and Highlights:
- Legislative Amendments: The changes in the ITR forms stem from amendments made to the Income-tax Act, 1961, under the Finance Act, 2023.
- Section 43B Amendment: A new provision under Section 43B restricts deductions for amounts payable to micro or small businesses not paid within the stipulated time, ensuring timely payments to MSMEs.
- Filing Deadlines: ITR-2 and ITR-3 deadlines are set for July 31, 2024. Taxpayers subject to income tax audits and those with business income must submit ITR-3 by October 31, 2024.
- Seven Distinct Forms: The Income Tax Department provides seven forms for return filing – ITR-1 to ITR-7.
- Bank Account Disclosure: Taxpayers are required to disclose all bank accounts from the previous year in ITR-1 and ITR-4, specifying the type of account.
- Tax Regime Shift: The default tax regime has shifted to the new regime, and taxpayers opting for the old regime must provide details of their choice in the respective forms.
- New Columns Introduced: ITR-1 includes a column for taxpayers to select the tax regime, while ITR-4 introduces a ‘Receipts in Cash’ column and a new column for claiming deductions under Section 80CCH.
- Form 10-IEA Submission: Taxpayers opting out of the new tax regime in ITR-4 need to submit Form 10-IEA.
These changes aim to enhance transparency, align with legislative amendments, and facilitate a smoother tax filing process for individuals and businesses in the upcoming assessment year.
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