ITR Forms: If you are a taxpayer and you like the old tax regime with various types of exemptions, then you will have to take special care while filing taxes this time. Taxpayers will have to make it clear that they do not want to opt for the new, minimum exemption tax regime for FY 2023-24 (Assessment Year 2024-25). In fact, after the implementation of the Finance Act 2023, the new tax system has been made the default regime.
ITR Forms: If you are a taxpayer and you like the old tax regime with various types of exemptions, then you will have to take special care while filing taxes this time. Taxpayers will have to make it clear that they do not want to opt for the new, minimum exemption tax regime for FY 2023-24 (Assessment Year 2024-25). In fact, after the implementation of the Finance Act 2023, the new tax system has been made the default regime. This means that if you do not choose any tax system, your tax calculations will be done under the new tax regime by default. That is why it becomes necessary to choose the old tax system carefully.
Jesus Sehgal, head of tax markets at AKM Global, a tax and consulting firm, said, “The requirement to choose the tax regime has been included in the new ITR-1 form. Whereas if you fill the ITR-4 form, you will not be able to opt out of the new tax regime.” To exit, Form 10-IEA will have to be filled.
‘Do you want to exercise the option under section 115BAC(6) to opt out of the new tax regime?’ If you answer “No” to this question in the new ITR form, then the rates and conditions of the new tax system will be applicable.
The Income Tax Department released ITR Form-1 (Sahaj) and ITR-4 (Sugam) on Friday. The questions related to the new tax regime have been modified in the new form. Till last year, taxpayers had to indicate in the form whether they wanted to opt for the new system.
ITR forms issued much ahead of time
This time the Central Board of Direct Taxes (CBDT) has notified the ITR form for the financial year 2023-24 (Assessment Year 2024-25) much earlier. Both these forms are applicable to salaried individuals, businesses and professionals. According to the notification, the new forms will come into effect from April 1, 2024.
Releasing the form before the end of the financial year will help taxpayers and consultants understand and prepare for what they will need once the ITR filing window for FY 2023-24 opens.
“Early issuance of ITR forms can help taxpayers file returns promptly at the end of the financial year,” said Chetan Chandak, director and founder of tax consultancy firm TaxBirable. The due date for filing returns for taxpayers using ITR-1 or ITR-4 forms is generally July 31.
Vivek Jalan, partner, Tax Connect Advisory, a tax consultancy firm, said, “Till a few years ago, these forms were issued in April/May and the utility (software that helps in filling the forms) for filling the forms on the income tax portal was released in June. It was issued in 2015 and after that, if there was any change, the taxpayers had to rush in at the last minute.”
