As we step into the financial year 2024-25, there are several key updates to the Income Tax Return (ITR) process in India that taxpayers need to be aware of. These new updates in Income Tax Return (ITR) for the financial year 2024-25 are aimed at simplifying the filing process, ensuring better compliance, and incorporating recent policy changes. Here’s a comprehensive look at the new updates in Income Tax Return (ITR) for 2024-25:
Introduction of Pre-filled ITR Forms:
One of the major new updates in Income Tax Return (ITR) for the financial year 2024-25 is the enhancement of pre-filled ITR forms. These forms will now include more comprehensive details, such as:
- Salary Income: Including break-up of salary components.
- Interest Income: From banks and post offices.
- Dividend Income: From companies and mutual funds.
- Capital Gains: From securities transactions.
- Rent Received: For property owners.
This initiative aims to minimize errors and reduce the time taken to file returns.
New Tax Regime Adjustments:
Another significant new update in Income Tax Return (ITR) for 2024-25 involves adjustments to the new tax regime:
- Standard Deduction: Now available under the new tax regime.
- Revised Slabs: Adjustments in the tax slabs to provide more relief to middle-income taxpayers.
- Enhanced Exemptions: Certain exemptions and deductions have been reintroduced to make the new regime more attractive.
Introduction of Form ITR-U for Updating Returns:
Among the new updates in Income Tax Return (ITR) for the financial year 2024-25 is the introduction of Form ITR-U. This form allows taxpayers to update their ITRs for past financial years. Key features include:
- Applicable for Two Years: Taxpayers can update their returns for up to two previous financial years.
- Limited Adjustments: Only specified errors and omissions can be corrected.
- Additional Tax Payment: An additional tax will be levied for updating returns.
Mandatory E-filing for More Taxpayers:
The threshold for mandatory e-filing has been lowered, making this one of the notable new updates in Income Tax Return (ITR) for 2024-25. This includes:
- Senior Citizens: Those with pension and interest income above the specified limit.
- Partnership Firms: Regardless of income, all partnership firms must e-file their returns.
- Trusts and Societies: Increased compliance requirements for charitable trusts and societies.
Simplified Reporting for Capital Gains:
Simplified reporting for capital gains is another important new update in Income Tax Return (ITR) for the financial year 2024-25:
- Automated Calculations: Integration with depositories and stock exchanges for auto-calculation of capital gains from securities.
- Detailed Break-up: Separate schedules for short-term and long-term capital gains, with specific sections for different asset classes.
Enhanced Penalty Provisions:
To ensure better compliance, enhanced penalty provisions are part of the new updates in Income Tax Return (ITR) for 2024-25:
- Late Filing Fees: Increased penalties for late filing of returns.
- Misreporting of Income: Higher penalties for underreporting or misreporting of income.
- Non-compliance: Stricter penalties for non-compliance with tax notices and demands.
Introduction of New Deductions and Exemptions:
New deductions and exemptions are among the new updates in Income Tax Return (ITR) for the financial year 2024-25, aimed at benefiting taxpayers:
- Health Insurance Premiums: Increased limits for health insurance premiums under Section 80D.
- Education Loan Interest: Expanded scope for deduction of education loan interest.
- Start-up Benefits: Extended tax holiday and enhanced benefits for start-ups.
Streamlined Refund Process:
The streamlined refund process is another crucial new update in Income Tax Return (ITR) for 2024-25:
- Direct Credit: Refunds will be directly credited to the bank account linked with the PAN.
- Real-time Tracking: Enhanced portal features to track refund status in real-time.
Conclusion:
These new updates in Income Tax Return (ITR) for the financial year 2024-25 reflect the government’s ongoing efforts to simplify the tax filing process, enhance compliance, and provide benefits to a wider section of taxpayers. By staying informed about these new updates in Income Tax Return (ITR) for 2024-25, taxpayers can navigate the filing process with greater ease and confidence, ensuring they leverage the available benefits while maintaining compliance with the new regulations.
Sir it is to better to provide opportunities to individuals to fill ITR oneself