The income tax department has launched the income tax return (ITR) filing functionalities for assessment year (AY) 2024-25, allowing taxpayers to start their ITR filings from April 1, 2024. This is markedly different from previous years, where the I-T department typically launches such facilities much later in the financial year.
Around 23,000 taxpayers have already filed their income tax returns (ITR) in the first three days (till April 4, 2024) of AY 2024-25 for the financial year 2023-24. This is another giant step towards ease of compliance and seamless taxpayer services.
The Central Board of Direct Taxes (CBDT) said: “The ITR functionalities i.e., ITR-1, ITR-2 and ITR-4, commonly used by taxpayers are available on the e-filing portal from April 1, 2024 onwards for taxpayers to file their returns. Companies will also be able to file their ITRs through ITR-6 from April 1 onwards.”
As a precursor to this, the CBDT had earlier notified the ITR forms well in advance in December 2023 last week. To facilitate the e-Return Intermediaries (ERI), the JSON Schema for ITR-1, ITR-2, ITR-4 and ITR-6 and Scheme of Tax Audit Reports have also been made available for A.Y. 2024-25. The same can be accessed under downloads section of the e-filing portal.
It is mandatory for all individuals to file tax returns regardless of their income level. Filing ITRs can also help individuals with documentation purposes for visa and loan applications.
Taxpayers should first select the appropriate ITR form based on their income source and amount of earnings. For instance, residents with total income up to Rs. 50 lakh and having income from salaries, having one house property, and income from other sources can use ITR-1 (SAHAJ), which is the most used form. Individuals who do not have income from business or profession [and not eligible for filing ITR Form-1 (Sahaj)] can file ITR-2, while those having income from business or profession can use ITR Form 3.
To file ITR Form 1 online, taxpayers need to log in to the e-filing portal with their permanent account number (PAN) and password, then navigate to ‘e-File’, select ‘Income Tax Returns’, and choose ‘File Income Tax Return’. They should select the appropriate assessment year, type of assessee, and filing mode.
After providing essential details using bank statements, Form 26AS for TDS and TCS details, and Annual Information Statement (AIS), taxpayers can claim applicable deductions on their taxable income using the same documents, or investment proofs, dematerialised account statements, etc.
Finally, they should preview the return to validate or rectify errors, if any. Lastly, they should choose from various e-verification options including OTP, Digital Signature or Electronic Verification Code to complete the filing process.
