Income Tax Return Filing 2024: Three key changes to note in ITR Form 1 and Form 4

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₹50 lakh, for assessment year (AY) 2024-25. The I-T Department notified the forms on Friday. “Changes introduced in new ITR forms 1 and 4 notified for Assessment Year 2024-25.

Surprising taxpayers with an unexpected and welcome gesture, the CBDT has played the role of an early Santa Claus this year by unveiling the Income Tax Return(ITR) Forms 1 and 4 for the Assessment Year 2024-25. These ITR Forms will be applicable for filing income tax returns for income earned during the previous year 2023-24 (between 01-04-2023 to 31-03-2024)," said Naveen Wadhwa, Vice President Research, Taxmann. The department usually notifies the ITR form before the start of the subsequent assessment year, i.e.

in February or March. This unexpected early release not only marks a departure from the established timeline but also implies that taxpayers will have a more extended period to familiarize themselves with the changes, gather necessary documentation, and file their returns with greater precision. ITR Form 1 (Sahaj) caters to a large number of small and medium taxpayers.

Sahaj can be filed by a resident individual having an income of up to ₹50 lakh and who receives income from salary, one house property, other sources (interest), and agricultural income of up to ₹5,000. ITR Form 4 (Sugam) are simpler form that caters to a large number of small and medium taxpayers. Sugam can be filed by individuals, HUFs, and firms (other than Limited Liability Partnerships (LLPs)) being a resident having total income of up to ₹50 lakh and income from business and profession.