CBDT Notifies Updated Income Tax Return Forms for A.Y. 2024-25: Key Changes and Implications

Introduction: 

The Central Board of Direct Taxes (CBDT) has recently issued Notification No. 19 of 2024, dated 31.01.2024, unveiling the Income-tax Return Forms (ITR Forms) for the Assessment Year (A.Y.) 2024-25. In tandem with this, Notification No. 16 of 2024, dated 24.01.2024, introduced ITR Form-6 for the same assessment year. The comprehensive set of ITR Forms, from 1 to 6, is slated to be effective from April 1, 2024, as outlined in the official communication.

Understanding the ITR Forms:

ITR FORM	UNDERSTANDING THE ITR FORM
ITR-1 (SAHAJ):	Eligible for resident individuals with a total income up to Rs. 50 lakh.
	Applicable for those with income from Salaries, one house property, and income from other sources.
ITR-2:	Designed for Individuals and HUFs not engaged in business or profession (not eligible for ITR Form-1).
	ITR-2 is the preferred choice for those with income from sources other than business or profession.
ITR-3:	Suited for individuals with income from business or profession.
	Business owners and professionals can efficiently file their returns using ITR Form-3.
ITR-4 (SUGAM):	Catering to resident individuals, HUFs, and firms (excluding LLP) with total income up to Rs. 50 lakh.
	Designed for those deriving income from business and profession under sections 44AD, 44ADA, or 44AE.
ITR-5:	Intended for entities other than individuals, HUFs, and companies (partnership firms, LLP, etc.).
ITR-6:	Applicable for companies not claiming exemption under section 11.

Key Changes and Enhancements:

The modifications introduced in the ITR Forms aim to streamline the filing process and enhance the experience for taxpayers. These changes have been necessitated by amendments to the Income-tax Act, 1961, enacted through the Finance Act, 2023.

Accessing Notifications and Forms:

All updated ITR Forms, along with detailed notifications, can be accessed on the official website of the Income Tax Department: www.incometaxindia.gov.in.

Notification No:
1. ITR Forms - 2, 3 and 5 were notified vide Notification No. 19/2024 dtd 31.01.2024.
2. ITR Form-6 was notified vide Notification No. 16/2024 dtd 24.01.2024.
3. ITR Forms-1 & 4 were notified earlier vide Notification No.105/2023 dtd 22.12.2023. 

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Conclusion:

As we usher in the new fiscal year, taxpayers are encouraged to familiarize themselves with the updated ITR Forms to ensure seamless compliance. The changes made by the CBDT reflect a commitment to improving the ease of filing and facilitating taxpayers in meeting their obligations under the Income-tax Act, 1961. Stay informed and stay compliant.

Disclaimer:
The information contained on this website is for general informational purposes only and is not intended to be construed as legal advice. While Pre-Taxes Solutions has made reasonable efforts to ensure the accuracy of the information provided, we cannot be held liable for any errors or inaccuracies. Please consult with a qualified legal professional for specific advice.

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