The Central Board of Direct Taxes (CBDT) has released Income Tax Return Forms for the upcoming year, 2024-25. These forms, including ITR-2, ITR-3, ITR-5, and ITR-6, were announced earlier for ease of preparation. The ITR-1 and ITR-4 forms were disclosed on December 22, 2023, and all forms (ITR 1 to 6) will be effective from April 1, 2024.
ITR-1, known as SAHAJ, is for residents with a total income up to Rs. 50 lakh, deriving income from salaries, one house property, and other sources. ITR-2 and ITR-3 are for individuals and HUFs without business income, while those with business income can use ITR-3. ITR-4 (SUGAM) is for residents, HUFs, and firms with total income up to Rs. 50 lakh and business income under specified sections.
In ITR-4, designed for presumptive taxation, a new field is added for reporting cash receipts in the business or profession section. Personal cash withdrawals made earlier do not need reporting in this field. ITR-5 is for entities like partnership firms, LLPs, etc., while ITR-6 is for companies not claiming exemption under section 11.
Changes in the ITRs aim to assist taxpayers and simplify the filing process. Most changes result from amendments to the Income-tax Act, 1961, introduced by the Finance Act, 2023. Detailed information and the forms are available on the Department’s website at www.incometaxindia.gov.in.