What are the changes in the New Income Tax Return forms for FY2023-24-

What are the changes in the New Income Tax Return forms for FY2023-24?

Question: The Income Tax Department has recently notified the new Income Tax Return forms applicable for Financial Year 2023-24 (Assessment Year 2024-25). Accordingly, kindly highlight the changes made in the new forms vis-à-vis the old forms.

Answer given by Dr Suresh Surana, Founder, RSM India: The new ITR Form 1 (Sahaj) – (Applicable for Salaried Taxpayers) and Form 4 (Sugam) – (Applicable for Taxpayers availing Presumptive Taxation) notified by the Income Tax Department via Notification No. 105/2023 dated 22nd December 2023 applicable for AY 2024-25 consist of the following changes:

Taxpayers filing ITR-1 will be required to indicate their choice of the tax regime in the return of income, and taxpayers filing ITR-4 will be required to furnish Form 10-IEA in order to opt for the concessional tax regime or withdrawal of such option i.e. opting out of the old tax regime.

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(ii) Section 80CCH of the I-T Act, inserted vide Finance Act 2023, enables individuals who have enrolled in the Agnipath Scheme on or after 1st November 2022 to claim a deduction of an amount equal to the contributions made to the Agniveer Corpus Fund.

Accordingly, a new column 80CCH has been inserted in Part C- Deductions and Taxable Total Income of ITR-1 and ITR-4.

(iii) The Finance Act 2023 amended section 44AD of the IT Act and increased the threshold limit of turnover/ gross receipts in case of resident individuals, HUFs and partnerships firms (other than LLPs) carrying on eligible businesses from Rs 2 crores to Rs 3 crores provided that the turnover / gross receipts received in cash does not exceed 5% of the total turnover / gross receipts.

Similarly, the threshold limit of gross receipts u/s Section 44ADA of the IT Act is also increased from Rs 50 lakh to Rs 75 lakh provided the gross receipts received in cash does not exceed 5% of the total gross receipts.

In context of the above, the “Receipts in Cash” row has been added to ITR-4 to be specified wherein the taxpayer claims an enhanced turnover limit.

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