The Income Tax Returns ( ITR ) forms have undergone new changes for the Assessment Year (AY) 2024-25. With regards to the amendments brought in the Finance Act in the year 2023, the ITR forms have changed accordingly.
The major changes are the new tax regime became the default, disclosure on online game winnings, disclosure of donations to political parties, disclosure of medical treatments and assistance provided to persons with disability, disclosure on contributions to Agniveer Corpus Fund..etc. Let’s delve into all the major updations and modifications in the ITR forms.
NEW TAX REGIME AS DEFAULT
ITR form Changed: ITR 1
The new regime now stands as the default option for individuals, Hindu Undivided Families (HUFs), Association of Persons (AOPs), and Body of Individuals (BOIs) filing their income tax returns using the ITR-1 Form. Thus, the taxpayers have to choose the tax regime while filing the returns.
A taxpayer filing ITR 4 will be required to file Form 10-IEA to opt out of the new tax regime. A new column has been added to claim deduction under section 80CCH in new ITR Forms 1 and 4.
Under the new provisions, the tax liability calculation differs from the traditional tax regime, offering taxpayers a choice between the old and new tax structures. Notably, the default application of the new tax regime is automatic for eligible entities unless they explicitly choose to opt out, as stipulated under Section 115 BAC(6) of the Income Tax Act, 1961.
SECTION 80 CCH – CONTRIBUTIONS TO AGNIVEER CORPUS FUND
ITR form Changed: ITR 1
The Finance Act 2023 introduced new provisions under Section 80CCH, specifically targeting contributions to the Agniveer Corpus Fund through the Agnipath Scheme. Effective from November 1, 2022, individuals who participate in this scheme and make payments to the Agniveer Corpus Fund are eligible for deductions based on the amount contributed.
By allowing deductions under Section 80CCH, taxpayers are encouraged to support initiatives that contribute to societal welfare, aligning with broader national development goals.
SCHEDULE 80DD- FOR MAINTENANCE & MEDICAL TREATMENT OF PERSON WITH DISABILITY
ITR form Changed: ITR 2 & 3
The new schedule 80DD pertains to the furnishing of details towards maintenance & medical treatment of the person with a disability. To claim deductions for maintenance and medical treatment expenses for a dependent with a disability, you must provide the details separately in Schedule 80DD, rather than under Schedule VI-A.
This schedule permits a deduction of Rs. 75,000 or Rs. 1,25,000 for a resident individual or HUF who incurs medical expenses or pays insurance premiums for the benefit of a family member with a disability.
The new ITR forms seeks following details shall be disclosed in the schedule:
CAPITAL GAIN ACCOUNTS SCHEME (ITR 2, 3 & 5)
ITR form Changed: ITR 2, 3 & 5
The Schedule-CG of Income Tax Return ( ITR ) forms is essential for reporting capital gains income. It covers details such as capital assets sold, buyer information, exemptions claimed, and deposits into the Capital Gains Accounts Scheme ( CGAS ). Now, the taxpayers using Income Tax Return ( ITR ) forms 2, 3, 5, and 6 are now required to furnish comprehensive details regarding the CGAS.
The revamped Schedule CG in the latest ITR forms mandates the inclusion of additional particulars. Taxpayers must now provide information such as the deposit date, account number, and IFSC code associated with their CGAS accounts.
ONLINE GAME WINNINGS DISCLOSURE (ITR 2, 3 & 5)
ITR form Changed: ITR 2, 3 & 5
The taxpayers who are filing the ITR forms 2, 3 and 5 have to disclose their winnings in the online game. The Finance Act of 2023 introduced a new provision, Section 115BBJ, aimed at taxing earnings derived from online gaming.
According to this amendment, all winnings from online games on or after April 1, 2023, will attract taxation under Section 115BBJ, with applicable Tax Deducted at Source ( TDS ) under Section 194BA.
To comply with these changes in the Income Tax Return ( ITR ) forms, Schedule OS has been revised. Taxpayers must now disclose income earned through winnings from online games that fall under the purview of Section 115BBJ in this schedule.
SCHEDULE 80GGC – DONATIONS TO POLITICAL PARTIES
ITR form Changed: ITR 2, 3 & 5
A new schedule 80GGC is added to the ITR forms ITR 2, 3 and 5, where the taxpayers have to disclose the donations made to the political parties. The following details shall be disclosed in the schedule:
RECEIPTS IN CASH
ITR form Changed: ITR 3 & 4
The Finance Act, 2023, has increased the turnover threshold limit for the presumptive taxation scheme under Section 44AD of the Income Tax Act from Rs. 2 crores to Rs. 3 crores, and for Section 44ADA from Rs. 50 lakhs to Rs. 75 lakhs, provided that cash receipts do not exceed 5% of the total turnover or gross receipts for the previous year, including non-account payee cheques or bank drafts.
To implement these changes, the CBDT has updated ITR forms to include a new column for “receipts in cash” under Schedule BP to disclose cash turnover or gross receipts.
DUE DATE FOR FURNISHING ITR
ITR form Changed: ITR 3 & 5
A new column to mention the due date for furnishing the ITR 3 and 5 is provided to the respective ITR forms. The three dates July 31st, October 31st or November 30th are provided in drop down options.
REASON FOR TAX AUDIT U/S Section 44AB
ITR form Changed: ITR 3 & 5
The new tax forms have sought to furnish the additional details for undergoing tax audit under Section 44AB. The taxpayer has to provide the additional reason for getting an audit under Section 44AB of the Income Tax Act.
MSME PAYMENT DISCLOSURE
ITR form Changed: ITR 5
The new change w.r.t. The Finance Act, 2023 in the ITR 5 leads to disclosure of sums payable to the micro or small enterprises beyond the specified time limit as per the MSMED Act. The Part A-OI (Other Information) requires the assessee to provide details of any amounts previously disallowed under Section 43B but allowable in the current year.
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