In a significant update for taxpayers, the Income Tax department has rolled out revised ITR forms for the Assessment Year 2024-25, incorporating several key changes mandated by the Finance Act 2023. Effective from December 2023, these amendments aim to enhance reporting transparency and compliance.
Under the latest guidelines, taxpayers filing ITR 1 and ITR 4 are required to navigate new reporting requirements. Specifically, ITR 1 filers must now declare their chosen tax regime directly in their income return, whereas ITR 4 filers need to submit Form 10-IEA to opt out of the new regime, emphasising flexibility in tax management.
For those dealing with capital gains, including users of ITR forms 2, 3, 5, and 6, detailed disclosures under the Capital Gains Account Scheme have been intensified. Unlike previous years, the revamped forms demand comprehensive information such as deposit dates, account numbers, and IFSC codes, ensuring meticulous financial record-keeping.
Furthermore, the introduction of Legal Entity Identifier (LEI) requirements in ITR forms 2, 3, 5, and 6 signifies a move towards greater transparency in high-value financial transactions exceeding ₹50 crore. This measure is poised to fortify financial integrity and deter fraudulent activities.
In line with these updates, ITR 6 submissions from companies now necessitate acknowledgment numbers and Unique Document Identification Numbers (UDIN) for audit reports, aligning with regulatory compliance under Sections 44AB and 92E.
Political contributions have also come under scrutiny with the inclusion of Schedule 80GGC in ITR forms 2, 3, 5, and 6. Taxpayers must now meticulously document donations to political parties, including transaction details like mode of payment and IFSC codes, underscoring transparency in political funding.
Additionally, for deductions related to medical treatment expenses for dependents with disabilities, a separate Schedule 80DD mandates detailed information on the nature of disability, dependent type, PAN, Aadhaar number, and other specifics, ensuring precise claim submissions.
Moreover, the Finance Act 2023 introduced Section 80CCH, facilitating deductions for contributions to the Agniveer Corpus Fund, reflected in updated columns within applicable ITR forms.
These updates underscore the Income Tax department’s commitment to streamlining tax compliance while bolstering reporting standards, ensuring taxpayers stay informed and compliant with the evolving fiscal landscape.
Navigating the complexities of income tax filing is now easier than ever with Vakilsearch’s comprehensive online ITR filing services. Whether you’re an individual taxpayer, a business owner, or an entity navigating the latest tax regulations, our expert team ensures seamless compliance and accurate submissions.
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