The Central Board of Direct Taxes (CBDT) has notified ITR Forms 1 and 4 for Assessment years 2024-25.
ITR-1 is a return filing form applicable to the individual who derives income from salary, rent, and interest. ITR 4 is to be filed by the individuals/HUF/ Partnership firm whose total income of AY 2020-21 includes as below: Business income under section 44AD or 44AE. Income from profession calculated under section 44ADA. Salary/pension having income up to Rs 50 lakh.
If you are a Non-Resident Indian (NRI), refer to the following article to know more about applicable forms and Income Tax Returns: Income Tax Filing for NRIs: Know the Returns and Forms Applicable for Non-Resident Individuals for AY 2023-2024
An Income tax return (ITR) is a form used to file information about your income and tax to the Income Tax Department. The tax liability of a taxpayer is calculated based on his or her income. In case the return shows that excess tax has been paid during a year, then the individual will be eligible to receive an income tax refund from the Income Tax Department.
As per the income tax laws, the return must be filed every year by an individual or business that earns any income during a financial year. The income could be in the form of a salary, business profits, income from house property or earned through dividends, capital gains, interests or other sources.
According to the Income Tax Act, income tax has to be paid only by individuals or businesses who fall within certain income brackets.
Mentioned below are entities or businesses that are required to compulsorily file their ITRs in India:
All individuals, up to the age of 59, whose total income for a financial year exceeds Rs 2.5 lakh. For senior citizens (aged 60-79), the limit increases to Rs. 3 lakh and for super senior citizens (aged 80 and above) the limit is Rs. 5 lakhs.
It is important to note that the income amount should be calculated before factoring in the deductions allowed under Sections 80C to 80U and other exemptions under section 10.
Read Also: Advantages of Filing ITR
All registered companies that generate income, regardless of whether they’ve made any profit or not through the year. Those who wish to claim a refund on the excess tax deducted/income tax they’ve paid.
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