Income Tax News: Attention! Income Tax Return Form for FY 2023–24 Reloaded, Key Changes and Caution for Taxpayers

Income Tax News: Three months prior to the end of the fiscal year, the Income Tax Department has made the Income Tax Return (ITR) form available for filing. The form used to file returns has undergone significant modifications from the department once more. As such, taxpayers will need to exercise extreme caution when selecting the ITR form and submitting their return. The income tax return form for the fiscal year 2023–2024 and the assessment year 2024–2025 has been made available by the Income Tax Department.

Default Implementation of New Tax Regime

According to the department, as of the current fiscal year, the new tax regime is in default. This implies that the taxpayers' taxes will only be computed using the new regime. They will have to select a new option if they are forced to select the previous regime. A taxpayer's tax will be computed in accordance with the new tax regime if he does not select one. Taxpayers will therefore have to select the previous option if they wish to save tax on their investments and savings.

Automatic Connection of ITR Form-1 to New System

According to tax experts, the ITR Form 1, which is only available to those who are employed, has been automatically connected to the new system. This implies that a taxpayer will have to select the previous system in order to benefit from tax savings. You will have to forfeit your new opportunity to receive a tax exemption if you have made investments or insurance purchases under Section 80C.

Opting Out of the New Tax Regime

In order to opt out of the new tax regime, taxpayers who file ITR Form-4 will need to complete an additional form. Form 10-IEA has been provided by the department to these taxpayers. The department will inquire about your desire to opt out of the new tax regime under section 115BAC (6) as soon as you go to file your ITR. If you select "no," the old tax calculation method will be used to open your ITR form. If you selected "yes," then the tax calculation will be completed using Form 10-IEA in accordance with the previous system.

Inclusion of Additional Information

Additionally, according to the Income Tax Department, taxpayers will now need to include additional information on the income tax return form. It is now also required to list all bank accounts as of this point. This implies that information about all bank accounts held by an individual must be provided when filing an ITR. Additionally, an appropriate column in the ITR form has been made for this by the Income Tax Department.

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