ITR filing forms for FY 2023-24 (AY 2024-25): Which income tax return form applies to you? (2024)

The Central Board of Direct Taxes (CBDT) has released the income tax return (ITR) forms for the Financial Year (FY) 2023-24, corresponding to the Assessment Year (AY) 2024-25 via notifications dated December 22, 2023, for the ITR-1 form and January 31, 2024, for the ITR-2 form. In a move to facilitate timely tax filing, the CBDT has also made available the utilities for online filing of ITR-1, ITR-2, and ITR-4 as of April 1, 2024, and for ITR-3 on May 9, 2024, via the official portal www.incometaxgov.in.

To comply with income tax rules and ensure a smooth filing experience, it is crucial to select the correct ITR form depending on your income sources, residential status, and reporting obligations for assets and liabilities.

Also Read: Last date to file ITR for different taxpayers

ITR form applicable to your income
General guidelines given below will help you to select the correct ITR form for the FY 2023-24 (AY 2024-25).

Key Updates to the ITR Forms:
The CBDT has introduced targeted revisions to refine the reporting framework and incorporate legislative changes brought forth by the Finance Act 2023. Notable modifications affecting salaried taxpayers include:

• 'Schedule OS' now features designated entries for reporting income from business trusts and taxable proceeds from life insurance policies upon maturity. Schedule OS is part of the ITR form. Income earned from 'Other Sources' (OS) is to be reported in this schedule.
• 'Schedule OS' now mandates disclosure of period wise accrual/ receipt of income by way of winnings from online games under Section 115BBJ of the Income-tax Act, 1961 (Act). This means that even income from online games winnings which are in the gaming companies' wallet and yet to be received in the bank accounts, will be required to be reported in the ITR form as well.
• 'Schedule 80DD' has been carved out to provide details of deductions related to the care and medical treatment of dependents with disabilities. The details include nature of disability, type of dependent, PAN of dependent, AADHAAR of dependent, date of filing Form 10-IA, acknowledgement number, UDID number (if available).
• 'Schedule 80GGC' has been carved out to provide details of contributions made to political parties.
• 'Schedule VI-A' includes a fresh column to claim deductions under Section 80CCH, applicable to individuals enrolled in the Agnipath Scheme from November 1, 2022, onwards.
• 'Schedule VDA' now carries a note stipulating reporting of every transfer transaction involving the sale of cryptocurrencies separately.
• 'Schedule CG' requires the taxpayers who have invested in the Capital Gains Accounts Scheme to furnish additional details such as the date of deposit, account number, and IFS code.

Also Read: Why salaried are advised to wait till June 15 to file ITR

Consequences of Missing the ITR Filing deadline

The current deadline for filing ITRs for FY 2023-24 (AY 2024-25) is July 31, 2024, for salaried individuals and those whose accounts are not required to be audited. Failing to meet this deadline will result in a penalty ranging from Rs 1,000 to Rs 5,000, applicable even if the tax liability is zero. Late filers will also forfeit the ability to carry forward certain losses for offsetting in the future.

Additionally, adherence to the deadline is a prerequisite for opting into the new concessional tax regime. Late filers will be excluded from this option.

Taxpayers have the opportunity to file an updated ITR within two years from the end of the relevant assessment year, provided they meet the criteria outlined in Section 139(8A) of the Act. This option is available if the original or belated ITR was not filed, or if a revised ITR could not be submitted within the statutory timeframe. However, filing updated ITR comes with an additional income tax charge of 25% or 50%, as applicable, on the sum of the income tax and interest due, which is in addition to the standard tax, interest, and fees for delayed tax payments and/or ITR filing.

The importance of due diligence

In recent years, tax authorities have significantly advanced their capabilities to aggregate taxpayer income and tax details, along with information on specified transactions from diverse sources. This data is captured in the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS), which are readily available to each taxpayer. It is imperative for taxpayers to meticulously review these statements prior to filing their ITR to preclude the possibility of discrepancies and subsequent notices from the tax authorities.

1. I have salary income and interest income from savings bank account and fixed deposits. Which income tax return form applicable to me?
Individual having salary income and interest income from savings bank account and fixed deposits can use ITR-1 to file their income tax return, provided total income does not exceed Rs 50 lakh.

2. I have capital gains from sale of equity share. Can I use ITR-1 form to file income tax return?
ITR-1 form cannot be used to report capital gains to the income tax department. A taxpayer is required to use income tax return from ITR-2 to report capital gains.

3. Which ITR form is not applicable to NRIs?
Non-resident Indians (NRIs) cannot use ITR-1 to file their income tax return.

4. Who cannot file income tax return using ITR-2 form?
Individuals and HUFs having income from business and profession cannot use ITR-2 form.

(The article is written by Shalini Jain, Tax Partner, EY India.Views expressed are personal. Akshay Sharma, Senior Tax Professional, EY India also contributed to this article.)