Filing income tax returns is a crucial part of financial compliance for individuals and entities in India. For the fiscal year 2024-25, the Income Tax Department has released various ITR forms to cater to different types of taxpayers. Understanding which form to use is essential for accurate tax reporting. Here’s a detailed summary of the seven income tax return forms, including the latest updates and important details.
ITR Forms Overview:
ITR-1 (Sahaj):
- Who Can Use It: Resident individuals with income from salaries, one house property, other sources (interest, etc.), total income up to Rs 50 lakh, or agricultural income up to Rs 5000.
- Purpose: Simplifies the return filing process for individuals with straightforward income sources.
ITR-2:
- Who Can Use It: Individuals and Hindu Undivided Families (HUFs) not having income from profits and gains of business or profession.
- Purpose: For those with income from salary, multiple properties, capital gains, and other sources.
ITR-3:
- Who Can Use It: Individuals and HUFs having income from profits and gains of business or profession.
- Purpose: Covers a broader range of income sources, including business and professional income.
ITR-4 (Sugam):
- Who Can Use It: Individuals, HUFs, and firms (excluding LLPs) being residents with total income up to Rs 50 lakh and having presumptive income from business and profession.
- Purpose: Simplifies filing for small businesses and professionals under the presumptive taxation scheme.
ITR-5:
- Who Can Use It: Entities other than individuals, HUFs, companies, and persons filing Form ITR-7.
- Purpose: Used by partnerships, LLPs, AOPs, and other entities.
ITR-6:
- Who Can Use It: Companies other than those claiming exemption under section 11.
- Purpose: For companies to report income and calculate tax liabilities.
ITR-7:
- Who Can Use It: Persons including companies required to furnish returns under sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F).
- Purpose: For entities like trusts, political parties, research associations, news agencies, and others.
Latest Updates for FY 2024-25:
- The Income Tax Department has released the ITR-6 excel utility for the fiscal year 2024-25. Prior to this, the excel utilities for ITR-1, ITR-2, and ITR-4 were made available.
- These forms can be downloaded from the ‘Downloads’ section on the e-filing page of the Income Tax Department’s website.
- Taxpayers are encouraged to file their ITRs on or before the due date to avoid penalties.
Understanding Income Tax Sections:
Familiarizing yourself with relevant sections of the Income Tax Act can significantly enhance your tax planning:
- Section 80C: Provides deductions for investments in specified instruments like PPF, EPF, LIC premiums, and more.
- Deductions under Chapter VI-A: Includes various sections like 80C to 80U, offering tax benefits for different expenditures and investments.
For more details, you can download the income tax sections list in PDF format, 80C deduction list PDF, and other related documents from the official website.
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