Atul Kumar Chaudhry

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For Salaried Individual

Income Tax Return Filing for the New Assessment Year 2024-25: Key Updates and Essential Tips

As we step into the new assessment year 2024-25, it’s crucial for taxpayers to stay updated with the latest changes in income tax regulations and filing requirements. The Indian government has introduced several new updates to streamline the tax filing process and ensure better compliance. In this blog post, we’ll walk you through the key updates for the assessment year 2024-25 and provide essential tips to help you file your income tax return (ITR) smoothly.

Key Updates for Assessment Year 2024-25

1. Revised Income Tax Slabs: The government has revised the income tax slabs for individual taxpayers. The new tax regime offers more flexibility with lower tax rates but fewer deductions. Here are the updated slabs:
   • Income up to ₹3 lakh: Nil
   • ₹ 3 lakh to ₹ 6 lakh: 5%
   • ₹ 6 lakh to ₹ 9 lakh: 10%
   • ₹9 lakh to ₹12 lakh: 15%
   • ₹12 lakh to ₹15 lakh: 20%
   • Above ₹15 lakh: 30%
2. Standard Deduction for Salaried Employees: The standard deduction for salaried employees has been increased from ₹50,000. This change aims to provide relief to salaried individuals by reducing their taxable income.
3. Introduction of New ITR Forms: The Income Tax Department has introduced new ITR forms to simplify the filing process for different categories of taxpayers. It’s important to choose the correct form based on your income sources and category:
   • ITR-1 (SAHAJ): For individuals with income up to ₹50 lakh from salary, one house property, and other sources.
   • ITR-2: For individuals and HUFs not having income from business or profession.
   • ITR-3: For individuals and HUFs having income from business or profession.
   • ITR-4 (SUGAM): For individuals, HUFs, and firms (other than LLP) having total income up to ₹50 lakh and income from business and profession computed under sections 44AD, 44ADA, or 44AE.
4. Pre-filled ITR Forms: To make the filing process more convenient, the Income Tax Department has enhanced pre-filled ITR forms with more detailed information. This includes salary income, interest income, dividend income, and capital gains from mutual funds and shares. Ensure you verify all pre-filled details before submission.
5. Extended Due Dates: For the assessment year 2024-25, the due date for filing ITR has been extended toJuly 31, 2024, for individuals and HUFs. Taxpayers are encouraged to file their returns well before the deadline to avoid last-minute rush and penalties.
6. Changes in Capital Gains Taxation: The government has made significant changes in the taxation of capital gains. Long-term capital gains (LTCG) from the sale of equity shares and equity-oriented mutual funds exceeding ₹1 lakh are now taxed at 10% without the benefit of indexation. Ensure you compute your capital gains accurately and report them in your ITR.

Essential Tips for Filing Your ITR

1. Gather All Necessary Documents: Before you start the filing process, gather all necessary documents such as Form 16, Form 26AS, bank statements, investment proofs, and any other relevant financial documents.
2. Verify Form 26AS: Form 26AS is a consolidated tax statement that contains details of tax deducted at source (TDS), advance tax, and self-assessment tax paid. Ensure that all TDS entries match with your income and investment records.
3. Choose the Correct ITR Form: Selecting the correct ITR form is crucial. Using the wrong form can lead to rejection of your return or processing delays. Refer to the latest guidelines to determine the appropriate form for your income category.
4. Report All Income Sources: Ensure that you report all income sources, including salary, interest, dividends, capital gains, and any other income. Non-disclosure of income can attract penalties and scrutiny from the tax department.
5. Claim Deductions and Exemptions: Maximize your tax savings by claiming all eligible deductions and exemptions under sections 80CCD(2) etc. Keep all supporting documents handy in case of any queries from the tax department.
6. E-Verify Your ITR: After filing your ITR, remember to e-verify it within 120 days. E-verification can be done through Aadhaar OTP, net banking, or by sending a signed physical copy of ITR-V to the Centralized Processing Center (CPC).

Conclusion

Filing your income tax return for the assessment year 2024-25 can be a seamless process if you stay updated with the latest changes and follow the necessary steps diligently. Utilize the extended deadline to gather all required documents, verify your details, and file your return accurately. Staying compliant with tax regulations not only helps you avoid penalties but also contributes to the nation’s economic growth.

Happy filing! If you have any questions or need assistance, feel free to consult a tax professional or reach out to the Income Tax Department’s helpline.