Income Tax Returns (ITR) | Which ITR Form is to be filed for AY 2024-25
- ITR Week 2024-25|Blog|Income Tax|
- 6 Min Read
- By Taxmann
- |
- Last Updated on 28 September, 2024
Latest from Taxmann
The ITR forms for the Assessment Year 2024-25 cater to various types of taxpayers based on their income sources, including salary, house property, business or profession, capital gains, and other sources. The Central Board of Direct Taxes (CBDT) has introduced several changes in the ITR forms for AY 2024-25 following amendments from the Finance Act 2023. Key changes include the option for Individuals/HUFs liable for audit to verify ITR using Electronic Verification Code (EVC), mandatory disclosure of due dates and reasons for tax audits under Section 44AB, detailed reporting on the Capital Gain Account Scheme, the inclusion of start-up PAN and DPIIT Registration Number for deferred ESOPs, an additional column for bonus payments under life insurance policies, a new Schedule 80-IAC for eligible start-ups in ITR Forms 5 and 6, and the requirement to provide Legal Entity Identifier (LEI) details for refunds of Rs. 50 crores or more.
FAQ 1. Which form should a taxpayer use for filing his income tax return for the assessment year 2024-25?
|
Nature of Income |
ITR 1[1] | ITR 2 | ITR 3 |
ITR 4[2] |
|
Salary Income |
||||
| Income from salary/pension (for ordinarily resident person) |
✓ |
✓ | ✓ |
✓ |
| Income from salary/pension (for not ordinarily resident and non-resident person) |
✓ |
✓ |
||
| Any individual who is a director in any company |
✓ |
✓ |
||
| If payment of tax in respect of ESOPs allotted by an eligible start-up has been deferred |
|
✓ | ✓ |
|
|
Income from House Property |
||||
| Income or loss from one house property (excluding brought forward losses and losses to be carried forward) |
✓ |
✓ | ✓ |
✓ |
| Individual has brought forward loss or losses to be carried forward under the head House Property |
|
✓ | ✓ |
|
| Income or loss from more than one house property |
|
✓ | ✓ |
|
|
Income from Business or Profession |
||||
| Income from business or profession |
✓ |
|||
| Income from presumptive business or profession covered under section 44AD, 44ADA, and 44AE (for person resident in India) |
✓ |
|||
| Income from presumptive business or profession covered under sections 44AD, 44ADA, and 44AE (for not ordinarily resident and non-resident persons) |
✓ |
|||
| Interest, salary, bonus, commission, or share of profit received by a partner from a partnership firm |
✓ |
|||
|
Capital Gains |
||||
| Taxpayer has held unlisted equity shares at any time during the previous year |
✓ |
✓ |
||
| Capital gains/loss on sale of investments/property |
✓ |
✓ |
||
|
Income from Other Sources |
||||
| Family Pension (for ordinarily resident person) |
✓ |
✓ | ✓ |
✓ |
| Family Pension (for not ordinarily resident and non-resident person) |
✓ |
✓ |
||
| Income from other sources (other than income chargeable to tax at special rates, including winnings from online games, lottery, and race horses or losses under this head) |
✓ |
✓ | ✓ |
✓ |
| Income from other sources (including income chargeable to tax at special rates, including winnings from online games, lottery, and race horses or losses under this head) |
✓ |
✓ |
||
| Dividend income exceeding Rs. 10 lakhs taxable under Section 115BBDA |
✓ |
✓ |
||
| Unexplained income (i.e., cash credit, unexplained investment, etc.) taxable at 60% under Section 115BBE |
✓ |
✓ |
||
| Person claiming deduction under Section 57 from income taxable under the head’ Other Sources’ (other than deduction allowed from the family pension) |
✓ |
✓ |
||
|
Deductions |
||||
| Person claiming deduction under Section 80QQB or 80RRB in respect of royalty from patent or books |
✓ |
✓ |
||
| Person claiming deduction under section 10AA or Part-C of Chapter VI-A |
✓ |
|||
| Total Income | ||||
| Agricultural income exceeding Rs. 5,000 |
✓ |
✓ |
||
| Total income exceeding Rs. 50 lakhs |
✓ |
✓ |
||
| Assessee has any brought forward losses or losses to be carried forward under any head of income |
✓ |
✓ |
||
|
Computation of Tax Liability |
||||
| If an individual is taxable in respect of an income but TDS in respect of such income has been deducted in the hands of any other person (i.e., clubbing of income, Portuguese Civil Code, etc.) |
✓ |
✓ |
||
| Claiming relief of tax under sections 90, 90A, or 91 |
✓ |
✓ |
||
|
Others |
||||
Assessee has:
|
✓ |
✓ |
||
| Income has to be apportioned in accordance with Section 5A |
✓ |
✓ |
||
| If the tax has been deducted on cash withdrawal under Section 194N |
✓ |
✓ |
✓ |
|
| Person has deposited more than Rs. 1 crore in one or more current accounts |
✓ |
✓ |
✓ |
|
| Person has incurred more than Rs. 2 lakhs on foreign travel |
✓ |
✓ | ✓ |
✓ |
| Person has incurred more than Rs. 1 lakh towards payment of the electricity bill |
✓ |
✓ | ✓ |
✓ |
| Person has turnover from business exceeding Rs. 60 lakhs |
|
✓ |
✓ |
|
| Person has gross receipts from profession exceeding Rs. 10 lakhs |
|
✓ |
✓ |
|
| The aggregate amount of TDS and TCS is Rs. 25,000 (Rs. 50,000 in the case of a senior citizen) or more |
✓ |
✓ | ✓ |
✓ |
| The aggregate deposit in the savings bank account is Rs. 50 lakh or more |
✓ |
✓ | ✓ |
✓ |
| * ITR-1 can be filed by an Individual only who is ordinarily resident in India. ITR-4 can be filed only by an individual or HUF who is ordinarily a resident of India and by a firm (other than an LLP) that is a resident of India. | ||||
| Other Assessees | ||||
| Status of Assessee | ITR 4 | ITR 5 | ITR 6 | ITR 7 |
| Firm (excluding LLPs) opting for presumptive taxation scheme of section 44AD, 44ADA, or 44AE |
✓ |
|||
| Firm (including LLPs) |
✓ |
|||
| Association of Persons (AOPs) |
✓ |
|||
| Body of Individuals (BOI) |
✓ |
|||
| Local Authority |
✓ |
|||
| Artificial Juridical Person |
✓ |
|||
| Companies other than companies claiming exemption under Section 11 |
✓ |
|||
Persons, including companies, are required to furnish returns under:
|
✓ |
|||
| Business Trust |
✓ |
|||
| Investment Fund, as referred to in Section 115UB |
✓ |
|||
FAQ 2. What changes have been introduced in the ITR forms notified for the Assessment Year 2024-25 compared to last year’s ITR forms?
The Central Board of Direct Taxes (CBDT) typically updates the ITR forms annually to incorporate amendments made to the Income Tax Act by the preceding Finance Act. For the Assessment Year 2024-25, while the applicability of forms for different taxpayers remains unchanged, several additional reporting requirements and modifications have been introduced due to the Finance Act 2023 amendments. Some key changes in the new ITR forms include:
- Verification Methods – Individuals/HUFs liable for audit can now verify their ITR using an Electronic Verification Code (EVC). Previously, verification was required only through a digital signature
- Tax Audit Details – Taxpayers must now mention the due date for filing an income return and provide the reason for conducting a tax audit under Section 44AB
- Capital Gain Account Scheme – Taxpayers must provide detailed information about the Capital Gain Account Scheme, not just the deposited amount, as required in last year’s form
- Schedule | Tax Deferred on ESOP – The new ITR forms include a schedule requiring the eligible start-up’s PAN and DPIIT Registration Number
- Schedule-OS | Other Sources – An additional column has been included for declaring bonus payments received under life insurance policies
- Schedule 80-IAC – A new Schedule 80-IAC has been inserted in ITR Forms 5 and 6 to seek details regarding eligible start-ups
- Legal Entity Identifier (LEI) – ITR forms now require details of the Legal Entity Identifier (LEI), a 20-character alpha-numeric code uniquely identifying parties in financial transactions worldwide. Taxpayers must provide LEI details if they are seeking a refund of Rs. 50 crores or more.
You can read about all the changes notified in the new ITR forms in the following articles published on taxmann.com:
[1] ITR-1 can be filed by an Individual only who is ordinarily resident in India.
[2] ITR-4 can be filed only by an Individual or HUF who is ordinarily resident in India and by a firm (other than LLP) resident in India.
Dive Deeper:
[FAQs] Income Tax Returns (ITR) | Requirement to File ITR
[FAQs] Income Tax Returns (ITR) | Updated Returns
Income Tax Returns (ITR) | New Tax Regime vs. Old Tax Regime
[FAQs] Income Tax Returns (ITR) | Reporting in Schedules in ITR
[FAQs] Income Tax Returns (ITR) | e-Filing of ITR
[FAQs] Income Tax Returns (ITR) | Annual Information Statement (AIS)
[FAQs] Income Tax Returns (ITR) | Capital Gains
[FAQs] Income Tax Return | Tax Payment | TDS | TCS | Refunds
[FAQs] Income Tax Returns (ITR) | Deductions & Rebates
[FAQs] Income Tax Returns (ITR) | Set-off of Losses
[FAQs] Income Tax Returns (ITR) | Clubbing of Income
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