The Income Tax Department has started the process of filing ITR for the financial year 2023-24. This process will continue till July 31, 2024. During this period, all taxpayers will have to fill their ITR.
Tax forms vary depending on the type of tax prescribed for different taxpayers. It is usually decided on the basis of the source of income and profession of the taxpayer. The most common of these forms is ITR-1, also known as “Sahaj Form”. It is for those individuals who fall under a certain income limit. This category includes those persons whose total annual income does not exceed Rs 50 lakh.
Also Read: Banks will open only for 3 days this week, check holiday list
When should ITR-1 form be filled?
You should file ITR-1 only if your total income includes income from the following sources:
– Income from salary/pension
– Income from a house (except in case of losses from previous years)
– Income from other sources (except lottery winnings and income from horse racing)
– If you are filing clubbed income tax return, which includes your spouse or minor child, then this can be done only if their income is also within the limits mentioned above.
Changes in ITR-1 form
Tax Regime: Those filing ITR-1 form will now have to choose their preferred tax regime. Following the amendments made to Section 115BAC through the Finance Act 2023, the new tax regime has now been prescribed as the default tax regime. This automated application is applicable to individuals, Hindu Undivided Families (HUFs), Associations of Individuals (AOPs) and Bodies of Individuals (BOIs).
If you want to use the old tax regime, you will have to explicitly opt out of section 115BAC(6). Also, individuals earning income from non-business or profession must specify their preferred tax regime while filing their ITR under section 139(1) for the relevant assessment year.
Section 80CCH: A new section, Section 80CCH, has been inserted through the Finance Act 2023. This section allows individuals who enroll in the Agnipath scheme and deposit the amount in the Agniveer Fund on or after November 1, 2022, to avail tax deductions. To accommodate this change, ITR Form 1 has been updated to allow the taxpayer to provide description about the amount eligible for deduction under section 80CCH.
