News

Published: December 27, 2023
Updated: December 27, 2023

Early Notification: ITR Forms 1 and 4 Unveiled by Income tax department for AY 2024-25

Timely Release of ITR Forms

In an unusual move, the Central Board of Direct Taxes (CBDT) has unveiled the Income Tax Return (ITR) forms 1 (SAHAJ) and 4 (SUGAM) seven months ahead of the usual schedule. Typically, ITR forms for a financial year are released in March or April, but this year's early notification provides individuals and entities ample time for compliance.

Filing Deadline and Potential Extension:

The last date to file ITR for the financial year 2023-24 (Assessment Year 2024-25) is set for July 31, 2024. However, taxpayers should be mindful that this deadline may be subject to extension. Staying informed about any updates on the filing deadline is crucial for a smooth filing process.

ITR Forms Overview

ITR-1 (SAHAJ): Who Can File?

Designed for residents with an annual total income of up to Rs 50 lakh, ITR-1 (SAHAJ) caters to individuals, excluding Hindu Undivided Families (HUFs). Eligible filers include those receiving income from salary, one house property, other sources (interest), and agricultural income up to Rs 5,000. However, individuals with taxable capital gains, investments in unlisted equity shares, business or professional income, or those serving as directors in a company cannot use this form.

ITR-4 (SUGAM): Eligibility Criteria

Applicable to individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships), ITR-4 (SUGAM) targets residents with a total income of up to Rs 50 lakh. This form is suitable for those deriving income from business and profession, computed on a presumptive basis under sections 44AD, 44ADA, or 44AE. However, it is not suitable for individuals, HUFs, or firms with directors in a company, income from more than one house property, deferred income tax on ESOP received from eligible start-ups, or those not meeting the eligibility conditions for ITR-4.

Commencement of Filing:

Starting April 2023, individuals and entities meeting the specified income criteria can initiate the filing process for the current fiscal year (April 2023-March 2024).

The early release of ITR forms 1 and 4 provides taxpayers with an extended window to prepare and file their returns. Understanding the eligibility criteria for each form is crucial to ensuring a smooth and accurate filing process. As the July 31, 2024 deadline approaches, individuals and entities are encouraged to stay abreast of any potential deadline extensions for a seamless tax compliance experience.