This time in December, the Central Board of Direct Taxes (CBDT) had notified ITR forms ITR-1 and ITR-4. Usually these forms come in February-March. What has happened is that taxpayers will understand the form in advance and it will be easier for them to fill it.
Every time there is some change in the income tax return form for taxpayers. This time also when you go to file tax return, you will see some changes in ITR Forms. This time in December, the Central Board of Direct Taxes (CBDT) had notified ITR forms ITR-1 and ITR-4. Usually these forms come in February-March. What has happened is that taxpayers will understand the form in advance and it will be easier for them to fill it. Let us know how many types of ITR forms there are, and what changes you will see this time.
ITR Form 1
Those Indian citizens whose annual income is up to Rs 50 lakh fill Form 1. Your salary, pension or any other source is also included in the income up to Rs 50 lakh. Agricultural income up to Rs 5000 is also included in this. But if you are a director of a company, have invested in an unlisted company, earn from capital gains, earn from more than one house or property or earn from business, then you cannot fill this form.
ITR Form 2
If your income is more than Rs 50 lakh then this form is for you. Under this, one has to declare about more than one residential property, capital gain or loss on investment, dividend income of more than Rs 10 lakh and income from farming of more than Rs 5000. Apart from this, even if the PF is earning interest, this form is also filled.
ITR Form 3
If you are a businessman, have invested in equity unlisted shares, or are earning as a partner in a company, then you can fill ITR Form 3. Apart from this, you can fill this form even if you have income from interest, salary, bonus, capital gains, horse racing, lottery, rental income from more than one property.
ITR Form 4
Means for Individual and HUF (Hindu Undivided Family). If your income comes from your business or any profession like income of doctor-lawyer, those running partnership firms (other than LLP), those earning income under section 44AD and 44AE and those earning more than Rs 50 lakh from salary or pension. People fill this form. If you are a freelancer but your annual income is more than Rs 50 lakh, you can still fill this form.
ITR Form 5
ITR 5 is for those entities which have registered themselves as Firms, LLPs, AOPs, BOIs. The same form is also used for Association of Persons and Body of Individuals.
ITR Form 6 and 7
For companies which do not get exemption under Section 11 of the Income Tax Act, ITR Form 6 is required. Companies and individuals who have to file return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) need to fill ITR Form 7.
What changed in ITR Form-1 and ITR Form-4?
This time the taxpayer filing ITR-1 will just have to indicate his tax regime while showing the income return. At the same time, those who fill Form-4 will have to fill separate Form 10-IEA to choose the new tax regime.
A new column has been added in both the forms to claim deduction under section 80CCH. Under this, individuals participating in the Agneepath scheme and those subscribing to the Agniveer Corpus Fund after November 1, 2022, will get tax deduction on the total deposit amount of the fund.
A “Receipts in Cash” column has been added to claim the increased turnover limit in ITR-4. Last year in the Finance Act, 2023, the turnover limit for opting for presumptive taxation scheme under section 44AD was increased from Rs 2 crore to Rs 3 crore, the condition is that the cash receipt is not more than 5 percent of the total turnover or gross receipt of the previous year. Should be.
