ITR Filing: Key Changes in the Income Tax Return Forms AY 2024-25

The Central Board of Direct Taxes (CBDT) normally updates the ITR forms once a year to reflect amendments made to the Income Tax Act by the previous Finance Act.

For the Assessment Year 2024-25, while the applicability of forms for different taxpayers remains unchanged, several additional reporting requirements and modifications have been introduced due to the Finance Act 2023 amendments.

While the forms applicable to different taxpayers remain unchanged for Assessment Year 2024-25, the Finance Act 2023 amendments have added several additional reporting obligations and adjustments.

Some Key Changes in the new ITR forms include:

Methods of Verification

Individuals and HUFs who are subject to audit can now validate their ITR using an Electronic Verification Code (EVC). Previously, verification was limited to a digital signature.

Details of Tax Audit

Under Section 44AB, taxpayers must declare the due date for submitting an income return and the reason for conducting a tax audit.

Capital Gain Account Scheme

Taxpayers must give complete information regarding the Capital Gain Account Scheme, not just the deposited amount, as required in the previous year’s form.

Schedule | Tax Deferred on ESOP

The New ITR forms require qualifying start-ups to provide their PAN and DPIIT Registration Numbers.

Schedule-OS | Other Sources

A new column has been added to declare bonus payments received from life insurance plans.

Schedule 80-IAC

ITR Forms 5 and 6 now include a new Schedule 80-IAC, which requests information on qualifying start-ups.

Legal Entity Identifier (LEI)

ITR forms now need the Legal Entity Identifier (LEI), a 20-character alpha-numeric code used to identify parties in financial transactions globally. For seeking refunds of Rs. 50 crores or more, taxpayers must give LEI details.