January 7, 2025 / INCOME TAX

Summarization of ITR Forms Under Income Tax Act

Table of Contents

Summarization of ITR Forms Under Income Tax Act

ITR FORMS	ELIGIBLE ASSESSEE	INCOME FROM SALARY	EXEMPT INCOME	CAPITAL GAIN	INCOME FROM HOUSE PROPERTY	BUSINESS INCOME	INCOME FROM OTHER SOURCES
ITR-1	RESIDENT INDIVIDUAL AND HUF	YES	YES, PROVIDED AGRICULTURE INCOME IS UP TO RS. 5000.	NO	YES, FROM ONLY ONE HOUSE PROPERTY.	NO	NO
ITR-2	HUF AND INDIVIDUALS.	YES	YES	NO	YES	NO	YES
ITR-3	INDIVIDUALS AND PARTNERS OF FIRMS AND HUFS	YES	YES	NO	YES	YES	YES
ITR-4	FIRM, HUF AND INDIVIDUALS	YES	YES, PROVIDED AGRICULTURE INCOME IS UP TO RS. 5000.	YES	YES, FROM ONLY ONE HOUSE PROPERTY.	YES, PROVIDED INCOME DECLARED UNDER PRESUMTIVE TAXATION	YES
ITR-5	LLPS, PARTNERSHIP FIRMS, AOP AND BOI.	NO	YES	NO	YES	YES	YES
ITR-6	COMPANIES	NO	YES	NO	YES	YES	YES
ITR-7	TRUSTS	NO	YES	NO	YES	YES	YES

PROCEDURE

Once the taxpayer identifies the applicable ITR form, they are required to furnish the details asked in the form. Once the details are furnished, follow the following steps –

1. Download the TDS certificate in Form 26AS and match the amount of TDS deducted, with the amount filled in the ITR form. In case of any mismatch, validate the same accordingly.
2. Once all the details are furnished and tallied, the taxpayer can calculate their total income for the particular Financial Year.
3. In the last step, the software will calculate the Tax Liabilities of the assessee, based on the inputs provided by them.

17 updates in the latest ITR Forms for FY 2023-24!

Here’s a detailed breakdown of the key changes:

1. Filing Deadlines: Taxpayers now have a new column in Forms ITR 3, 5 and 6 where they specify the deadline for filing returns.

2. Online Gaming Winnings Taxation: Schedule OS has been amended to include reporting of income from online gaming in form ITR 2, 3, 5 and 6.

3. Adjustment of Unabsorbed Depreciation: The new provisions allow for the adjustment of unabsorbed depreciation in Form ITR 3 and 5.

4. LEI Details: Legal Entity Identifier (LEI) disclosure is now mandatory for refunds exceeding INR 50 crores in Form ITR 2, 3, 5 and 6.

5. Political Party Contributions: Schedule 80GGC will require detailed disclosure of political party contributions in Form ITR 2, 3, 5 and 6.

6. Cash Receipts Reporting: A new column for cash receipts reporting has been added to claim an enhanced turnover limit in Form ITR 3, 4 and 5.

7. Start-up Deduction Details: New Schedules for claiming deductions under Sections 80-IAC and 80LA have been introduced in Form ITR 5 and 6.

8. Dividend Income Reporting: dividend income received from a unit in an International Financial Service Centre shall be taxed at a reduced tax rate of 10% instead of 20%. Schedule OS has been amended in new ITR forms to incorporate such change in Form ITR 2, 3, 5 and 6

9. ESOP Tax Benefits: Enhanced reporting requirements for Employee Stock Option Plans (ESOPs) needs disclosure of PAN and DPIIT Registration Numbers in Form ITR 2and 3.

10. EVC for Tax Audits: Individuals and HUFs under tax audits (ITR 3) can now verify returns using Electronic Verification Code (EVC). This simplifies the verification process and enhances ease of compliance.

11. Reasons for Tax Audit: Additional details are required from audited companies in Form ITR 3, 5 and 6 regarding the circumstances necessitating tax audits. This change enhances transparency and accountability in tax reporting.

12. Business Trust Sums Reporting: A new column under Schedule OS allows for reporting sums received by unitholders distributed by business trust to avoid non-taxation in Form ITR 2, 3 and 5.

13. Bank Account Disclosure: Taxpayers must now disclose all bank accounts held, except dormant accounts in Form ITR 2, 3 and 5.

14. CGAS Reporting: Detailed disclosure of deposits in the Capital Gains Accounts Scheme is now required in Form ITR 2, 3, 5 and 6.

15. Deduction under Section 80CCH: A new column is introduced to claim deductions under Section 80CCH for Agniveer Corpus Fund in Form ITR 1, 2, 3 and 4.

16. New Schedule 80U: Schedule 80U is added for claiming deductions for persons with disabilities, seeking detailed information in Form ITR 3.

17. Schedule 80DD: Similar to Schedule 80U, Schedule 80DD is added to claim deductions for maintenance and medical treatment of dependents with disabilities in Form ITR 2 and 3.

These updates aim to simplify reporting, enhance transparency, and align with evolving tax regulations. Save this comprehensive overview for future reference and share it with your peers to help them navigate the tax filing process effectively.

Income Tax Slab Rates for Residents for Financial Year 2023-2024 for Salary Income under Section 192 & Pension Income under Section 194P

income tax slab

Guide to select correct Income Tax Return.

Guide to select correct ITR Guide to select correct ITR.

Important Alert in Taxation of RENTAL INCOME- B𝐮i𝐥𝐝𝐢𝐧𝐠 𝐚𝐥𝐨𝐧𝐠𝐰𝐢𝐭𝐡 F𝐮𝐫𝐧𝐢𝐭𝐮𝐫𝐞, F𝐢𝐱𝐭𝐮𝐫𝐞𝐬

Income received 𝐑𝐞𝐧𝐭𝐚𝐥 𝐢𝐧𝐜𝐨𝐦𝐞 from 𝐥𝐞𝐭𝐭𝐢𝐧𝐠 out of 𝐛𝐮i𝐥𝐝𝐢𝐧𝐠 𝐚𝐥𝐨𝐧𝐠𝐰𝐢𝐭𝐡 𝐟𝐮𝐫𝐧𝐢𝐭𝐮𝐫𝐞, 𝐟𝐢𝐱𝐭𝐮𝐫𝐞𝐬, 𝐞𝐭𝐜., would be taxable under the head ‘𝐢𝐧𝐜𝐨𝐦𝐞 𝐟𝐫𝐨𝐦 𝐨𝐭𝐡𝐞𝐫 𝐬𝐨𝐮𝐫𝐜𝐞𝐬’ & 𝐚𝐜𝐜𝐨𝐫𝐝𝐢𝐧𝐠𝐥𝐲, 𝐝𝐞𝐩𝐫𝐞𝐜𝐢𝐚𝐭𝐢𝐨𝐧 𝐰𝐨𝐮𝐥𝐝 𝐛𝐞 𝐚𝐥𝐥𝐨𝐰𝐚𝐛𝐥𝐞 as expense in terms of provisions of section 57(iii) of the Act.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: singh@caindelhiindia.com or call at 9555555480