The Income Tax Department has recently enabled the filing of ITR-1, ITR-2, ITR-4, and ITR-6 for Assessment Year (AY) 2024-25 through both offline and online modes on the e-filing portal. Additionally, Excel utilities for ITR-1, ITR-2, and ITR-4 for AY 2024-25 can be accessed under the ‘Downloads’ section on the e-filing portal. Let’s go deeper into these ITR forms to understand their applicability and features.
Common Offline Utility for ITR Forms
A single offline utility has been introduced for filing Income-tax Returns, covering ITR 1, ITR 2, and ITR 4 for AY 2024-25. This unified utility aims to streamline the filing process, making it more efficient and user-friendly for taxpayers.
Form ITR-1 (Sahaj)
Who should file?
ITR-1 is applicable for individuals who are residents (excluding not ordinarily residents) with a total income up to Rs. 50 lakh. The income sources covered under this form include:
- Income from Salaries
- Income from one house property
- Income from other sources (Interest, etc.)
- Agricultural income up to Rs. 5 thousand
ITR-1 is commonly known as ‘Sahaj’ and is suitable for salaried individuals or pensioners with straightforward income sources.
Here is the link to a video uploaded by the Income Tax Department explaining Form ITR-1. This video can assist you in understanding the clear terms of the form.
Form ITR-2
Who should file?
ITR-2 is designed for Individuals and Hindu Undivided Families (HUFs) who do not have income from profits and gains of business or profession. If you have income from multiple sources but no business income, ITR-2 is the form you should use.
Form ITR-4 (Sugam)
Who should file?
ITR-4, also known as ‘Sugam,’ is for Individuals, HUFs, and Firms (excluding LLPs) who are residents with a total income up to Rs. 50 lakh. This form is applicable if you have income from business and profession computed under sections 44AD, 44ADA, or 44AE, along with agricultural income up to Rs. 5 thousand.
ITR-4 is beneficial for small business owners and professionals opting for the presumptive taxation scheme under the specified sections.
Here’s a video link provided by the Income Tax Department, guiding individuals through Form ITR 4. Watching this video can aid in comprehending the clear terms of the form.
(Hindi Version) – How to file ITR 4:
Form ITR-6
Who should file?
ITR-6 is specifically for Companies, excluding those claiming exemption under section 11. If you are a company and not eligible for exemption under section 11, you should file your income tax return using ITR-6.
Key Points to Remember
- Residential Status: Ensure you determine your residential status correctly before selecting the appropriate ITR form.
- Income Sources: Identify all your income sources and choose the ITR form that aligns with your income profile.
- Agricultural Income: Remember to include agricultural income if applicable, keeping in mind the specified limits for each ITR form.
- Offline & Online Filing: With the availability of both offline and online modes, choose the method that suits you best but ensure accuracy in data entry to avoid discrepancies.
Conclusion
Filing income tax returns can seem difficuly, but understanding the right ITR form can simplify the process significantly. With ITR-1, ITR-2, ITR-4, and ITR-6 now available for AY 2024-25, taxpayers have multiple options to choose from based on their income and residential status.
Whether you’re a salaried individual, a business owner, or a company, there’s an ITR form tailored to your needs. Make sure to file your returns accurately and on time to avoid penalties and legal complications. Remember, timely and correct filing not only ensures compliance with tax laws but also contributes to a hassle-free tax journey.
