Key Changes in Income-Tax Return Forms Applicable for FY 2023-24 Return Filing
ITR Filing for FY 2023-24: The Income Tax department consistently updates tax return forms to ensure they align with new legislative requirements and provide comprehensive reporting capabilities for taxpayers while filing their returns. In December 2023, the Central Board of Direct Taxes (CBDT) introduced significant revisions to the Income Tax Return (ITR) forms 1 and 4, specifically for the Assessment Year 2024-25. These updates were driven by the amendments enacted through the Finance Act 2023, reflecting the government’s ongoing efforts to enhance transparency and accuracy in tax filings.
The changes are designed to capture a broader range of financial information, ensuring that taxpayers report their income and deductions more precisely. This move not only aims to streamline the tax collection process but also seeks to minimize instances of tax evasion and ensure that the tax base is broad and fair.
Tax Regime Declaration
In the revised ITR forms, taxpayers filing ITR 1 must indicate their chosen tax regime directly in the return. For those filing ITR 4, Form 10-IEA is now required to opt out of the new tax regime. Additionally, a new column has been added in ITR Forms 1 and 4 to claim deductions under section 80CCH.
Capital Gains Account Scheme
Taxpayers using ITR forms 2, 3, 5, and 6 are now required to provide detailed information regarding the Capital Gains Account Scheme. Unlike previous forms, which only required the deposited amount, the updated Schedule CG now mandates additional details such as the deposit date, account number, and IFSC code.
Form 10-IEA Requirement for ITR 4 Filers
ITR-4 (SUGAM) is intended for individuals, HUFs, and firms (excluding LLPs) with a total income up to Rs 50 lakh, derived from business and profession under sections 44AD, 44ADA, or 44AE. Taxpayers opting for ITR 4 must now file Form 10-IEA to choose the old tax regime.
Receipts in Cash Column Added to ITR-4
A new “Receipts in Cash” column has been introduced in ITR-4, allowing taxpayers to claim an enhanced turnover limit.
Legal Entity Identifier Requirement
ITR forms 2, 3, 5, and 6 now require taxpayers to provide a Legal Entity Identifier (LEI), a unique 20-character alpha-numeric code, when claiming a refund of Rs 50 crore or more. This requirement aims to enhance transparency and traceability in high-value financial transactions, preventing fraud and promoting financial integrity.
Acknowledgment Number and UDIN Requirement in ITR-6
Companies submitting ITR 6 must now include acknowledgment numbers and Unique Document Identification Numbers (UDIN) for audit reports as per sections 44AB (tax audit report) and 92E (transfer pricing report).
Donations to Political Parties
New Schedule 80GGC in ITR forms 2, 3, 5, and 6 requires detailed disclosure of contributions made to political parties. Required information includes the date and amount of the contribution (with a breakdown of cash and other modes), eligible contribution amount, transaction reference number for UPI transfer or cheque number/IMPS/NEFT/RTGS, and the bank’s IFSC code.
Deduction Details for Medical Treatment
For deductions related to maintenance and medical treatment expenses for a dependent with a disability, detailed information must be provided separately in Schedule 80DD. Required details include the nature of the disability, type of dependent, PAN and Aadhaar number of the dependent, date of filing, acknowledgment number of Form 10-IA, and UDID Number.
Agniveer Corpus Fund
Section 80CCH, introduced by the Finance Act 2023, allows individuals filing through ITR forms 1, 2, 3, or 4 to claim deductions for amounts deposited in the Agniveer Corpus Fund. A dedicated column has been added in “PART C – DEDUCTIONS AND TAXABLE TOTAL INCOME” to specify the eligible deduction amount.
These updates aim to streamline tax filing processes and ensure comprehensive reporting of financial activities. Make sure to familiarize yourself with these changes to ensure a smooth and accurate filing for FY 2023-24.
Also Read: 10 Key Information on ITR-1 Filing by Salaried Individuals for FY 2023-24
For more details about ITR filing by Salaried individuals for FY 2023-24 CLICK HERE
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