New Delhi: The Income Tax Return (ITR) season has begun. The Income Tax Department has notified ITR Forms 1, 2, 3, 4 and 5 – ITR-1 (Sahaj) and ITR-4 (Sugam) were released on 29 April, while ITR-3 was issued on 30 April.
The I-T department released the ITR-5 on 1 May and ITR-2 on 3 May. The taxpayers are required to choose forms and file ITR according to their income and needs. In this article, we inform you about the ITR forms in detail.
ITR-1 (Sahaj)
The Income Tax department has introduced a big change in the ITR-1 form from this. The department has given information about long term capital gains (LTCG) from listed shares and mutual funds up to Rs 1.25 lakh can be given in it. Earlier, this information was allowed only in ITR-2 or ITR-3. This form is meant for taxpayers having income up to Rs 50 lakh and whose income is only from salary, one house property and other sources (such as interest).
ITR-2
The Income Tax department has introduced some new columns to ITR-2 – Legal Entity Identifier (LEI), information on deposits under Capital Gains Account Scheme (CGAS), and reporting of dividends received from IFSC units. Also, it has been made mandatory to clearly show the choice of tax regime. This form is for individuals and HUFs whose income includes capital gains, more than one house property or income from abroad, but who are not engaged in business or profession.
ITR-3
A new section has been added to ITR-3 to report income from online gaming separately. The disclosures of non-payment to MSME on time has been made mandatory. The department has introduced new columns related to CGAS and LEI. The form is for those individuals / Hindu Undivided Families (HUFs) who are involved in business or profession.
ITR-4 (Easy)
Taxpayers filing ITR-4 can now report about LTCG up to Rs 1.25 lakh from listed shares and mutual funds, earlier it was not allowed. The tax department has raised the limit for presumptive taxation (Section 44AD/44ADA) from Rs 2 crore to Rs 3 crore, provided cash transactions are less than 5 percent. Filing of Form 10-IEA has now been made mandatory to opt or exit the new tax regime. The particular form is for small traders, professionals and freelancers.
ITR-5
ITR-5 has new columns for submitting information related to LEI and CGAS. If a taxpayer wants to exit the new tax regime, he is now mandated to submit Form 10-IEA. This form is for firms, LLPs, AOPs, BOIs and other entities that do not fall under ITR-7.
The Income Tax Department has released ITR Forms 1-5 for the 2024 filing season. Significant updates include allowing LTCG reporting up to Rs 1.25 lakh in ITR-1 and ITR-4, new columns for LEI and CGAS information across several forms, and mandatory Form 10-IEA submission for new tax regime choices/exits. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
