New Rules for ITR File 2024-25 : The Income Tax Department of India has announced Form 1 and Form 4 to fill ITR earlier by Eligible taxpayers. So if your annual income is 50 lakh rupees then you can apply for income tax return 2024-25 through online mode. Check this article to know about the New Rules for ITR File 2024-25 and updates by the Income Tax Department of India for the tax payers in 2024-25.
The Central Board of Direct Taxes (CBDT) has officially released the income tax return (ITR) forms : ITR-2 and ITR-3, to be filled for the ongoing fiscal year 2023-24, i.e.. assessment year 2024-25. ITR-2 and ITR-3 are intended for different entities, including individuals, who have certain specific types of income. These taxpayers are necessary to file their ITR using these forms and has to follow the New Rules for ITR File 2024-25 in order to file their returns.
New Rules for ITR File 2024-25
ITR forms 1 and 4 are income tax return forms used by individuals and entities in India to file their annual income tax returns with the Income Tax Department. They are both designed for taxpayers with total incomes up to Rs. 50 lakh, but they cater to different income sources and business situations.
Income Tax Department releases from 1 and 4 in February and March of each year. But now they have early released the income tax return form on the website on 22 December 2023.
The Central Board of Direct Taxes (CBDT) vide Notification No. 19 of 2024 dated 31.01.2024, has notified Income-tax Return Forms (ITR Form) – 2, 3 and 5 for the Assessment Year (A.Y.) 2024-25. Further, see Notification No. 16 of 2024 dated 24.01.2024, ITR Form-6 has been informed for the A.Y. 2024-25. Earlier, ITR-1 and ITR-4 for the A.Y. 2024-25 were informed vide Notification No. 105 of 2023 dated 22.12.2023. All ITR Forms 1 to 6 have since been informed and will come into effect from 1st April, 2024.
New column for Tax Reduction on allowances for Agni Veer
New Rules for ITR File 2024-25 : The Government of India has recently launched the Agni Veer scheme to recruit youths for military services. Agni Veers are getting different pay scales from the central government under the scheme and are also getting Army allowance according to the rules. Now income tax department has added a new column in the application form of ITR form 1 and form 4 for Agni Veer allowances.
The column is added after amending the ITI Act 80 CCH which is advocating that the Agni Veer Corpus Fund Which is equally contributed by the Agni Veers and Central Government is taxable. So if you are working for the Agneepath scheme in the Indian Army then you will get a new column to select for Agni Veer so you need note to click on the other links to fill in your details.
ITR eligibility will remain unchanged !!
New Rules for ITR File 2024-25 : However, the authority has earlier released ITR forms 1 and 4 but the eligibility has not been changed. It means all the individuals in India or business entities in India who are earning less than 50 lakh rupees annually from all the sources has to submit Form 1 and Form 4. However, individuals, companies, or organizations that are earning more than 50 lakh have to pay other income tax return application forms according to their category. However, most of the taxpayers fill the ITR forms 1 and 4.
If any individual is earning more than 2.5 lakh rupees annually from all the sources then he is eligible to pay the income tax and has to submit the Income Tax return form before the deadline. However, senior citizens have flexibility in the eligibility to pay income tax returns. If any employee is not only receiving his salary but also earning from other sources such as the stock market, cryptocurrency, house rental facilities, etc. and has less than 50 lakh tenure annually then he has to pay the tax.
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New Tax Regime in ITR 2024-25
New Rules for ITR File 2024-25 : The Government of India introduced a new tax region in 2020 and in a budget of 2023, they have selected a new tax regime for the default setting. However, you have the freedom to select any procedure to pay the income tax you can select the New tax regime or the Old Tax regime according to your suitability.
While the New Tax regime has prepaid for providing low tax rates compared to the old tax regime, but old tax regime has multiple forms for tax deduction and exemptions. So if you are laying in the takes pair category then you can pay the tax by filling the Form 1 and Form 4, by visiting the official website of the Income Tax Department which has been started since December 2023.
Income tax filing due dates for FY 2023-24 (AY 2024-25)
| Taxpayer | Due Date for Tax Filing – FY 2023-24 |
| Individual / HUF/ AOP/ BOI (books of accounts not required to be audited) | 31st July 2024 |
| Businesses (Requiring Audit) | 31st October 2024 |
| Businesses requiring transfer pricing reports (in case of international/specified domestic transactions) | 30th November 2024 |
| Revised return | 31 December 2024 |
| Belated/late return | 31 December 2024 |
New Rules for ITR File 2024-25
We have share a thorough analysis of new ITR Forms and highlighted all key changes and new requirements in current ITR forms vis-a-viz last year’s ITR Forms.
- Individuals / HUFs liable for audit can verify ITR using EVC.
[ITR 3]
Rule 12 has been amended to permit individuals and HUF who are liable to tax audits under Section 44AB to verify the return of income through an electronic verification code. Earlier, they could verify the returns only through digital signature. - Furnishing of due date for filing of return.
[ITR 3 and 5]
A new column has been inserted in ITR forms seeking information on the deadline for submitting the income tax return. The taxpayer is required to choose the applicable due date for filing the return from the provided dropdown options, namely, July 31st, October 31st or November 30th. - The new tax regime is the default tax regime; Taxpayers must choose to opt-out to go with the old regime.
[ITR 2, 3 and 5]
The Finance Act 2023 has amended the provisions of Section 115BACto make it the default tax regime for the assessee being an Individual, HUF, AOP, BOI and AJP. If an assessee does not want to pay tax according to the new tax regime, he will have to expressly opt out of it and choose to be taxed under the old tax regime.
In simple terms, an assessee filing ITR 2 is only required to indicate his choice of tax regime in the return of income. An assessee filing ITR 3 will be required to file Form 10-IAE to opt out of the new tax regime.
The new ITR Forms have been amended to include this change. - Details of Legal Entity Identifier (LEI)
[ITR 2, 3 and 5]
The Legal Entity Identifer (LEI) is a 20-character alpha-numeric code used to uniquely identify parties in financial transactions worldwide. It has been implemented to improve the quality and precision of financial data reporting systems for better risk management.
As per the RBI Regulations, all single payment transactions of INR 50 crores and above undertaken by entities (non-individuals) should include remitting and beneficiary LEI information. This applies to transactions undertaken via the NEFT and RTGS payment systems.
In order to be in line with the RBI regulations, the new ITR Forms have included a column for furnishing details of the LEI number. Such taxpayer is required to furnished the LEI details if he is seeking a refund of INR 50 crores or more. - Furnishing the reason for tax audit under Section 44AB
[ITR 3 and 5]
New ITR Form seeks additional details from the assessee subject to audit under Section 44AB. The additional information concerns the circumstances under which the company is obliged to undergo an audit, such as:
1. Sales, turnover or gross receipts exceed the limits specified under section 44AB;
2. Assesse falling under Section 44AD/44ADA/44AE/44BB but not offering income on presumptive basis;
3. Others. - Furnishing of acknowledgment number of the audit report and UDIN
[ITR 3 and 5]
When providing information about audits conducted under Section 44AB, including audit under Section 92E, companies are required to furnish the acknowledgment number of the audit report and the UDIN. - “Receipts in Cash” column added to claim enhanced turnover limit
[ITR 3 and 5]
The Finance Act, 2023 has enhanced the turnover threshold limit from INR 2 crores to INR 3 crores for opting for the presumptive taxation scheme under Section 44AD if the receipts in cash do not exceed 5% of the total turnover or gross receipts for the previous year It is also provided that the meaning of cash would include the check or a bank draft, which is not an account payee.
Likewise, Section 44ADA was amended to enhance the threshold limit of gross receipts from INR 50 lakhs to INR 75 lakhs, if the receipts in cash do not exceed 5% of the total gross receipts for the previous year.
To give effect to the above amendments, the CBDT has amended ITR forms to include a new column of “receipts in cash” for disclosing cash turnover or cash gross receipts under the Schedule BP. - Disclosure of the amount payable to MSME beyond the prescribed time limit
[ITR 3 and 5]
Section 43B deals with specified deductions which are to be permitted on a payment basis. Thus, even if an assessee follows the mercantile method of accounting, deduction belonging to the specified expenses shall be allowed only when payment has been made.
Part A-OI (Other Information) consists of information wherein the assessee is required to furnish the details of any amounts disallowed under Section 43B in any previous year but permissible during the year.
The Finance Act 2023 has inserted a new clause (h) in Section 43B to provide that any amount payable to a micro or small enterprise beyond the time limit specified in Section 15 of the Micro, Small and Medium Enterprises Development Act 2006 (MSME Act) Shall not be allowed as a deduction.
Accordingly, a new column is inserted under Part A-OI (Other Information) to disclose the amount payable to Micro or small enterprises beyond the specified time limit per the MSMED Act. - Disclosure of information concerning the Capital Gains Accounts Scheme.
[ITR 2, 3 and 5]
The Schedule-CG of ITR forms seeks information regarding the capital gains earned by the taxpayer. This schedule requires various details, including information about the capital asset sold, the specifics of the buyer, and specifics regarding the amount spent for claiming exemptions.
In the newly notified ITR Forms, Schedule-CG has been modified to gather more information concerning to sums deposited in the Capital Gains Accounts scheme (CGAS). The revised schedule now requires the inclusion of the following additional details toward CGAS :-
1.) Date of deposit.
2.) Account number.
3.) IFS code.
Until the previous Assessment Year, taxpayers were only required to provide details concerning the sum deposited in CGAS. - Disclosure of winnings from online games chargeable under Section 115BBJ
[ITR 2, 3 and 5]
The Finance Act 2023 has inserted a new Section 115BBJ to tax earnings from online games, w.e.f. Assessment year 2024-25. A matching Section 194BA has also been inserted with effect from 01-04-2023 for the deduction of tax from the net winnings from online games. Therefore, all winnings from online games on or after 1-4-2023 shall be taxable under Section 115BBJ and subject to TDS under Section 194BA.
To report such income in ITR form, Schedule OS has been amended to reveal income by way of winning from online games chargeable under Section 115BBJ.
