As the Income Tax Department rolls out its updated ITR forms for the assessment year 2024-25, taxpayers are gearing up for the filing season, with a deadline set for July 31, 2024. To simplify the process and steer clear of last-minute hassles, let’s delve into the six ITR forms tailored for different income brackets.
ITR-1 SAHAJ:
Designed for residents (excluding not ordinarily residents) with a total income not exceeding ₹ 50 lakh. It covers income from salaries, one house property, other sources, and agricultural income up to ₹ 5,000.
ITR-2:
Ideal for individuals and HUFs without income from business or profession, and ineligible for ITR Form-1 (Sahaj).
ITR-3:
Geared towards individuals and HUFs earning profits and gains from business or profession.
ITR-4 Sugam:
Suited for residents with total income up to ₹ 50 lakh and income from business or profession under sections 44AD, 44ADA, or 44AE.
ITR-5:
Tailored for entities like firms, LLPs, AOPs, BOIs, AJP, investment funds, co-operative societies, and more.
ITR-6:
Specifically crafted for companies not claiming exemption under section 11.
Income tax filing is a civic duty contributing to the nation’s revenue and welfare. Direct taxes, levied on individuals and corporations, vary based on annual income. Fortunately, the ITR filing process offers avenues for taxpayers to claim benefits, exemptions, and TDS on investments, savings, and loans, easing their financial burden.
Furthermore, understanding the significance of ITR filing goes beyond mere compliance; it empowers taxpayers to optimise their financial portfolio. By leveraging tax-saving opportunities and exemptions, individuals and entities can strategically manage their finances while contributing to the nation’s economic growth.
The government’s commitment to facilitating tax compliance is evident through various initiatives aimed at simplifying the filing process and enhancing transparency. With the advent of digital platforms and e-filing portals, taxpayers now have convenient access to resources and assistance to navigate through the intricacies of tax laws.
Moreover, the evolution of tax regulations underscores the need for taxpayers to stay abreast of updates and amendments. Keeping pace with changes ensures accurate filing and minimises the risk of penalties or discrepancies.
As the filing season unfolds, choosing the right ITR form ensures a seamless process and maximises tax benefits. Stay informed, stay compliant, and make the most of your tax returns.
