In a surprising move, the Central Board of Direct Taxes (CBDT) has released the Income Tax Return (ITR) forms, specifically ITR-1 and ITR-4, for the financial year 2023-24 (Assessment Year 2024-25) on December 22, 2023.
This early release, seven months prior to the filing deadline of July 31, 2024, is notably ahead of the usual schedule.
Early Notification of ITR Forms
Traditionally, ITR forms for the previous financial year are released around February of the ongoing year. However, this year, the CBDT has provided taxpayers with a head start by releasing the forms three months in advance.
The move aims to equip taxpayers with sufficient time for accurate information gathering and preparation of their ITR.
Filing under the Old Tax Regime
ITR-1 is designed for individuals with a total income not exceeding Rs 50 lakh from various sources, including salary, property, and other income streams.
However, certain individuals cannot use ITR-1. Those who are company directors, invested in unlisted equity shares, or faced TDS on cash withdrawals under section 194N or deferred income tax on ESOP need to opt for other ITR forms.
Default Implementation of the New Tax Regime
Since the budget of 2023 implemented the new tax regime by default, taxpayers need to consciously opt out if they wish to continue under the old tax regime.
The new tax regime eliminates certain exemptions like HRA, LTA, and Section 80C, but offers a standard deduction of Rs 50,000 for the salaried class. Additionally, Section 80CCD (2) deduction is available for the employer’s contribution to NPS.
Advance Tax Awareness Campaign
The Income Tax Department is actively promoting awareness about advance income tax payments.
This campaign emphasizes the importance of paying advance income tax based on anticipated income during the financial year.
Business owners and freelancers earning income through their business or freelancing activities are required to pay advance income tax if their tax liability (minus TDS) exceeds Rs 10,000 in a financial year.
Taxpayers are encouraged to stay informed and utilize the early availability of ITR forms for a seamless filing experience.
