The government has notified the income tax return (ITR) forms 1 to 4 for the assessment year 2024-25. These are the forms that taxpayers need to use to file their returns for the income earned in the financial year 2023-24. The forms have been simplified and rationalized to make the filing process easier and faster.
What are the ITR Forms 1 to 4?
The ITR forms 1 to 4 are the most commonly used forms by individual taxpayers. They are categorized based on the sources and types of income, as well as the eligibility criteria. Here is a brief overview of each form:
- ITR-1 (Sahaj): This form is for individuals who have income from salary, pension, interest, or family pension, and whose total income does not exceed Rs 50 lakh. This form is also for residents who have only one house property and do not have any capital gains or foreign assets.
- ITR-2: This form is for individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession, but have income from more than one house property, capital gains, foreign assets, or income from other sources. This form is also for non-residents and not ordinarily residents.
- ITR-3: This form is for individuals and HUFs who have income from business or profession, whether as a proprietor, partner, or member. This form is also for those who have income from more than one house property, capital gains, foreign assets, or income from other sources.
- ITR-4 (Sugam): This form is for individuals, HUFs, and firms (other than limited liability partnerships) who have income from business or profession under the presumptive taxation scheme, where the income is calculated at a fixed percentage of the turnover or gross receipts. This form is also for those who have income from salary, pension, interest, or family pension, and whose total income does not exceed Rs 50 lakh.
How to File Your ITR for 2024-25?
The deadline for filing your ITR for the assessment year 2024-25 is July 31, 2024. You can file your ITR online through the e-filing portal of the Income Tax Department. Here are the steps to follow:
- Register on the e-filing portal using your PAN, mobile number, and email address.
- Login to the portal using your user ID (PAN), password, and captcha code.
- Choose the relevant ITR form and assessment year, and click on “Prepare and Submit Online”.
- Fill in the required details, such as personal information, income details, tax deductions, tax payments, etc.
- Verify and validate the pre-filled information, such as bank account details, TDS details, etc.
- Compute your tax liability and pay any balance tax, if applicable, through the e-payment option.
- Preview and submit your ITR after verifying it with your digital signature or electronic verification code (EVC).
- Download and save the acknowledgment receipt for future reference.
What are the Benefits of Filing Your ITR?
Filing your ITR is not only a legal obligation, but also a smart financial move. Here are some of the benefits of filing your ITR:
- Claim tax refunds: If you have paid excess tax, either through TDS or advance tax, you can claim a refund by filing your ITR. The refund will be credited to your bank account within a few weeks.
- Carry forward losses: If you have incurred losses from business, profession, or capital gains, you can carry them forward for up to eight years and set them off against future profits or gains, by filing your ITR.
- Apply for loans: If you want to apply for a home loan, car loan, personal loan, or education loan, you will need to submit your ITR as a proof of income and repayment capacity. Most lenders require at least three years of ITR for loan approval.
- Get visa approvals: If you want to travel abroad for work, education, or leisure, you will need to show your ITR as a proof of financial stability and income source. Most countries require at least three years of ITR for visa approval.
- Avoid penalties: If you fail to file your ITR by the due date, you will have to pay a late fee of up to Rs 10,000, as well as interest on the unpaid tax. You may also face prosecution and imprisonment in some cases.
Filing your ITR is a simple and hassle-free process, thanks to the online facility and the pre-filled forms. By filing your ITR on time, you can enjoy the benefits of tax compliance and financial planning. So, don’t delay and file your ITR today.
