New ITR Forms released for AY 2024-25 | What Has Changed?

For normal taxpayers, it's not that important to know when the portals like EZTax.in is auto-selecting the correct ITR for you, this document generally gives you an idea of what information the ITD would like from taxpayers.

This document covers

1. What are the changes to ITR Forms for AY 2024-25?
2. When to choose ITR-1
3. When to choose ITR-2
4. When to choose ITR-3
5. When to choose ITR-4

1. What are the changes to ITR Forms for AY 2024-25?

1. Bank (All ITR Forms)
   New disclosure to have 'Type of Account' field for all Bank Accounts given in the ITR
2. Deductions (All ITR Forms)
   A new column has been introduced to claim the deduction under section 80CCH. Individuals registered in the Agnipath Scheme on or after November 1, 2022 are eligible for deductions under this provision.
3. 44AD (Receipts in Cash) (ITR-3 & ITR-4)
   New condition incorporated in ITR-3 & ITR-4 for 44AD section to set a turnover limit to Rs. 3 Crores if the gross turnover in cash is less than or equal to 5%. Otherwise it is set to Rs. 2 Crores.
4. 44ADA (Receipts in Cash) (ITR-3 & ITR-4)
   New condition incorporated in ITR-3 & ITR-4 for 44ADA section to set a turnover limit to Rs. 75 Lakhs if the gross turnover in cash is less than or equal to 5%. Otherwise it is set to Rs. 50 Lakhs.
5. LEI Number (ITR-2 & ITR-3)
   The "LEI Number" and "Valid UpTo Date" fields of the Legal Entity Identifier (LEI) are required for refund claims of 50 Crores or more in ITR-2 and ITR-3. The LEI, which stands for Legal Entity Identifier, is a 20-digit unique code utilized within the worldwide financial transaction system.
6. Schedule VDA (ITR-2 & ITR-3)
   Clarified on Schedule VDA that each transaction involving the sale of cryptocurrencies must be recorded in an individual row. EZTax.in Portal adopted this strategy even for the fiscal years 2022-23 and 2023-24 (already operational).
7. Section 54GB (ITR-2 & ITR-3)
   Eliminated the long-term capital gains reinvestment option for eligible entrepreneurs under section 54GB, as it will no longer be applicable after March 31, 2023, and is therefore not included in ITR forms for fiscal year 2024-25.
8. CGAS Account Details (ITR-2 & ITR-3)
   In addition to the amount being deposited in the "capital gains accounting scheme" (CGAS) account for future investments, "Date of deposit", "Account number", and "IFS Code" are now required when recording long-term capital gains (LTCG) reinvestments.
9. e-Verification (ITR-2 & ITR-3)
   The e-verification process undertaken by an individual or HUF subject to a tax audit was made more flexible through the inclusion of an electronic verification code (EVC) alongside the DSC. This is a tremendous relief, as individuals and HUFs are no longer required to purchase DSC annually. We anticipate seeing this in subsequent tax investigations as well.
10. New Schedule 80GGC (ITR-2 & ITR-3)
    A new Schedule 80GGC was implemented to provide comprehensive information regarding contributions to political parties. This schedule now includes the following details: contribution date, mode of payment, transaction reference number for UPI transfers, cheque number, IMPS/NEFT/RTGS, and IFSC Code of the bank.
11. New Schedule 80DD (ITR-2 & ITR-3)
    A new Schedule 80DD was introduced to detail the process of claiming a tax deduction for the amount of money spent on medical treatment for a disabled family member. The information comprises the following: dependent type, PAN and Aadhaar numbers of the dependent, date of filing for the Form 10IA, Form 10IA acknowledgement number, and UDID (Unique Disability Identity Card) number, if accessible.
12. IT Filing due date (ITR-3)
    The Taxpayers who are filing ITR 3 are required to select the applicable due date for filing the income tax return from dropdown i.e., July 31, October 31 or November 30
13. Form 10IEA (ITR-3 & ITR-4)
    As the New Tax Regime is the default regime, the taxpayers are required to file Form 10IEA on or before the due date to opt Out of New Regime and convert to Old Regime.
14. UDIN and Tax Audit Acknowledgement Number (ITR-3)
    The Taxpayers whose books gets audited u.s 44AB or 92E, are required to furnish Acknowledgment number of the Audit report and UDIN

2. When to choose ITR-1

1. For Individuals being a resident (other than not ordinarily resident) having a total income up to Rs. 50 Lakh
2. having Income from Salaries, one house property (single ownership), interest income, Family pension income etc.
3. Agricultural income up to Rs. 5000/-
4. Not a director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head " from House Property".
5. Do not use this form if you have a sale of Cryptos / VDAs

3. When to choose ITR-2

1. For Individuals, HUF being a resident, RNOR or NRI
2. Having Income above Rs 50 lakhs
3. Having Multiple Properties including the properties outside India
4. Agriculture Income of more than Rs 5000
5. Being a Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head "Income from House Property", "Income from Capital Gains".
6. Have sold a property or shares or mutual funds.
7. Having foreign assets
8. Profit or loss derived from the sale of Cryptos / VDAs, excluding crypto derivatives (F&Os)
9. Gifts received in the form of VDAs / Cryptos needs to be reported under ITR2/3 (based on applicability)

4. When to choose ITR-3

1. For Individuals, HUF being a resident, RNOR or NRI having Salary, House property, other sources, foreign income, Capital Gain and Business or Professional Income
2. Having Income above Rs 50 lakhs
3. Having Multiple Properties including the properties outside India
4. Agriculture Income of more than Rs 5000
5. Being a Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head "Income from House Property", "Income from Capital Gains".
6. Have sold a property or shares or mutual funds
7. Having foreign Assets
8. Being a Partner in a Firm/LLP
9. Profit or loss derived from the sale of Cryptos / VDAs, including crypto derivatives (F&Os)
10. Gifts received in the form of VDAs / Cryptos needs to be reported under ITR2/3 (based on applicability)

5. When to choose ITR-4

1. For Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 Lakh
2. having one house property (single ownership)
3. having income from business and profession which is computed under sections 44AD, 44ADA or 44AE or Interest Income, Family pension etc
4. Agricultural income up to Rs. 5000/-
5. Not a Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head "Income from House Property".
6. Do not use this form if you have a sale of Cryptos / VDAs