CBDT notifies new ITR forms for Assessment Year 2024-25. Which one is for you?

The Income Tax department has officially notified income tax return forms 2, 3, and 5 for the assessment year 2024-25. This follows the earlier notifications of ITR-1 and ITR-6 for companies already notified in December 2023 and January 2024, respectively.

With these, all ITR Forms 1 to 6 are now officially notified and are set to be effective from April 1, 2024. The CBDT also said that a few changes have been incorporated in the ITRs to enhance the ease of filing and facilitate taxpayers.

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Which ITR form is for what?

• ITR-1 (Sahaj): For individuals with a total income of up to ₹50 lakh

• ITR-2: For individuals and HUFs not having income from business or profession and not eligible for ITR-1 (Sahaj).

• ITR-3: For individuals and HUFs having income from business or profession.

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• ITR-4 (Sugam): For resident individuals, HUFs, and firms (except LLP) with a total income up to ₹50 lakh, having income from business and profession.

• ITR-5: For partnership firms and LLPs.

• ITR-6: For companies, excluding those claiming exemption under section 11.

‘Average processing time of ITR reduced in 10 years’: FM Sitharaman

Union finance minister Nirmala Sitharaman, while presenting interim Union Budget, on Thursday lauded the ‘transformative shift in tax assessment methodologies over the past five years’.

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“Introduction of updated income tax returns, a new Form 26AS and prefilling of tax returns have made filing of tax returns simpler and easier. Average processing time of returns has been reduced from 93 days in the year 2013-14 to a mere ten days this year, thereby making refunds faster,” FM Sitharaman said.