New ITR forms: What’s new in ITR-1 and ITR-4 for AY 2024-25?

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Income Tax
CBDT has released the new ITR forms – ITR-1 and ITR-4 – for FY 2023-24 early this year. These forms are applicable for filing income tax return before July 31, 2024, unless extended.

New ITR forms AY 2024-25: Taxpayers will now be required to provide information regarding cash receipts and all their bank accounts within the country according to the latest Income Tax Return (ITR) Forms for the Assessment Year 2024-25, as notified by the Central Board of Direct Taxes.

CBDT has released the new ITR forms – ITR-1 and ITR-4 for FY 2023-24 early this year.

These forms are applicable for filing income tax return for AY 2024-24 with the last date of July 31, 2024, unless extended.

One noteworthy feature of the new ITR forms is that The Finance Act, 2023 has modified Section 115 BAC, establishing it as primary tax regime for individuals, HUFs, AOPs, BOIs, and AJPs. Under this amendment, if an assessee prefers not to adhere to the new tax regime, they must expressly opt out and select the Old Regime for their taxation.

The ITR 1, also known as Sahaj, can be filed by individuals with an income up to Rs.50 lakhs. This includes income from salary, one house property, other sources such as interest, dividends, etc and agricultural income up to Rs.5,000.


Taxpayers will need to provide details of all their bank accounts operational in the previous year along with the type of account.

The updated income tax return forms also include a special section for deductions for Agniveers, the youth serving in the armed forces under the Agnipath scheme, as per Section 80CCH.


Individuals, Hindu undivided families (HUFs), and firms, excluding limited liability partnerships (LLPs), with a total income up to Rs.50 lakhs and income from business and profession, can file ITR 4, also known as Sugam.

In the previous year, the forms were notified in February. Previously, there was a separate column for cryptocurrency.  However, in the new ITR, a new disclosure has been added to specify “receipts in cash’ in the New ITR 4 Form.

Here are some cases in which the assessee cannot file ITR 1 –

  • Any individual having an income of more than INR 50 lakhs.
  • An individual holding a directorial position in a company or having unlisted equity shares during the financial year.
  • Non-residents and Resident but not ordinarily resident (RNOR).
  • Individuals with income from more than one house property
  • Income from lottery, horse races, and legal gambling.
  • Short-term and long-term capital gains
  • Agricultural income is more than 5000.
  • Income from business and profession
  • Any resident having assets outside India
  • Individuals claiming Foreign Tax Credit under sections 90, 90A and 91.
  • Deferred Income Tax on ESOP.

Here are some cases in which the assessee cannot file ITR 4 –

  • If the turnover of the business exceeds Rs. 2 crores (3 crores for FY- 2023-24), the taxpayer will have to file ITR-3
  • If your total income is more than INR 50 lakhs
  • Have income from more than one house property and own a foreign asset
  • Signing authority in any foreign account
  • Having a foreign income source
  • Have directorship in a company
  • Non-resident or RNOR status
  • Having unlisted equity shares
  • If the ESOP payment is deferred to ESOP
  • In case you have any brought forward losses.

Extension of time for GSTR-3B Filing for November 2023 in specific districts of Tamil Nadu

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In response to the devastation caused by the MICHAUNG cyclone in early December 2023, the deadline for monthly GST returns has been extended, in respect of the taxpayers whose principal place of business is located in the four cyclone-affected districts of Chennai, Tiruvallur, Chengalpattu and Kancheepuram, as per release from Commercial Taxes Department.


The CBIC vide Notification No. 55/2023 – Central Tax dated December 20, 2023, extends the deadline for filing FORM GSTR-3B for November 2023 until December 27, 2023.

This extension applies to registered individuals with their principal place of business in specific districts of Tamil Nadu (Chennai, Tiruvallur, Chengalpattu, Kancheepuram), as recommended by the Council under section 39(1) and rule 61(1)(i) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”).

Know about: “Discard Income Tax Return option.”

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The income tax department has introduced a new functionality on its website- ‘Discard ITR’.
This new feature will allow taxpayers to discard their previously filed but unverified Income Tax Returns (ITR). 

Starting from Assessment Year 2023-24, this new ‘Discard ITR’ functionality, provides users with the ability to discard original, belated, or revised ITR, expanding the scope for revision beyond just errors or omissions.

– Opting to discard the ITR is equivalent to non-filing of the return.

– Following the discard, a new ITR can be submitted.

However, if the fresh ITR is filed after the due date, it will incur late fees and other associated consequences.

– Once the discard option is exercised, it cannot be reversed.

Hence, use this option cautiously.

– The discard feature is available until the ITR filing deadline, i.e., until December 31 following the end of the financial year.

Hence, timely action is advised.

The tax department has released FAQs to address common queries on Discard ITR Option. Here is all you need to know about the new functionality on the income tax website that allows taxpayers to discard their unverified Income Tax Returns (ITR).

1)Taxpayers can avail of the option of “Discard” for the ITRs being filed u/s 139(1) /139(4) / 139(5) if they do not want to verify it.

2)However, if the “ITR filed u/s 139(1)” is discarded and the subsequent return is filed after the due date u/s 139(1), it would attract implications of belated return like 234F, etc., 

3) To access the ‘Discard’ option, users can follow the specified pathway on the income tax website. On the income tax portal, users can find the Discard option www.incometax.gov.in → Login → e-File → Income Tax Return → e-Verify ITR → “Discard”

4) Users can avail of this option only if the ITR status is “unverified” / “Pending for verification”. 

5) Users can utilize the discard option repeatedly as long as the ITR status remains unverified or pending verification.

6) The feature is available for AY24 onwards. Once an ITR is discarded.

7) This option will be available only till the time limit specified for filing ITR u/s 139(1)/139(4) /139(5) (i.e., 31st December of respective AY as of now).

8) Once an ITR is discarded, it cannot be reinstated, making the action irreversible and essentially disclaiming the filing of the ITR.

Meanwhile, a record number of over 7.85 crore Income Tax Returns were filed till October 31 this year, said the Central Board of Direct Taxes (CBDT). According to the official release, October 31 was the due date for filing ITRs (other than ITR-7) for taxpayers not having any international or specified domestic transactions.

Source: Discard Return – FAQs

Updated Income Tax Return (ITR U) – Check out this option

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Filing an Updated Income Tax Return (ITR-U) under section 139(8A)

ITR-U refers to the Updated Return form used for filing an amended or revised income tax return in India. It is a provision provided by the Income Tax Department to enable taxpayers to correct any errors, rectify omissions, or make changes to their original tax return filing. The “U” in ITR-U stands for “Updated.”

ITR-U is primarily used when individuals or entities realize that they have made mistakes in reporting their income, claiming deductions, providing incorrect details, or omitting important information in their initial tax return. By filing an updated return using ITR-U, taxpayers can rectify these errors and ensure that their tax records reflect their financial situation accurately.

The filing of ITR-U falls under Section 139(8A) of the Income Tax Act, which allows taxpayers to revise their returns within a specific time-frame. It is important to note that ITR-U is different from the regular income tax return forms (such as ITR-1, ITR-2, etc.) used for filing the original tax return.

Filing ITR-U involves providing accurate details of the original return, specifying the changes or amendments being made, and submitting the revised return electronically through the Income Tax Department’s official website or other authorized platforms. It is crucial to ensure that the updated return is filed within the prescribed deadline to avoid penalties and legal consequences.

Who can file ITR-U?

  • Return previously not filed

In the case of a return previously not filed, taxpayers can file an Updated Return to report their income and fulfill their tax obligations.

  •     Income not reported correctly

In situations where income was not reported correctly, taxpayers can file an Updated Return to rectify the error and provide accurate income details.

  • Wrong heads of income chosen

When wrong heads of income are chosen, taxpayers can use ITR-U to correct the classification and allocate income under the appropriate heads.

  • Reduction of carried forward loss

In situations involving the reduction of carried forward loss, taxpayers can file an Updated Return to adjust and reduce the carried forward loss accordingly.

  •     Reduction of unabsorbed depreciation

When there is a need for the reduction of unabsorbed depreciation, taxpayers can file an Updated Return to adjust and reduce the unabsorbed depreciation.

  •     Reduction of tax credit under Sections 115JB/115JC

In situations involving the reduction of tax credit under Sections 115JB/115JC, taxpayers can file an Updated Return to reduce the tax credit accordingly.

  •     Wrong rate of tax

When an incorrect rate of tax has been applied, taxpayers can use ITR-U to correct the rate and ensure accurate calculation of their tax liability.

Following conditions are to be satisfied to file return u/s 139(8A): 

– It should not result in a return of loss.
– It should not reduce Income Tax Liability as compared to last filed valid return.
– It should not result in increase of Refund.
– Search should not have been initiated under section 132.
– Requisition should not have been made under section 132A.
– Survey should not have been conducted section 133A or.
– Any proceeding of assessment, reassessment, re-computation or revision should not be pending or completed for that relevant year.

Who Cannot File Form ITR-U?

    Return of loss

If the updated return results in a return of loss, it cannot be filed using Form ITR-U. The form is designed for rectifying errors or making changes to the original return, not for reporting a loss.

    Reduction of income tax liability

If filing an updated return reduces the income tax liability that was declared in the earlier filed return, Form ITR-U cannot be used. The purpose of the form is not to revise the tax liability to a lower amount.

    Increase in refund

If filing an updated return leads to an increase in the refund amount compared to the return filed earlier, Form ITR-U is not applicable. The form is not intended for increasing the refund amount.

    Search or requisition

If a search has been initiated under section 132 or books of accounts or any other documents have been requisitioned under section 132A, filing Form ITR-U is not allowed.

    Survey conducted

If a survey has been conducted under section 133A, Form ITR-U cannot be used for filing an updated return.

    Pending or completed proceedings

If any assessment, reassessment, re-computation, or revision proceedings are pending or have been completed for the relevant assessment year, Form ITR-U cannot be filed.

    Information under various acts

Suppose the Assessing Officer has information against the person under the Prevention of Money Laundering Act, Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act. In that case, Benami Property Transactions Act, or Smugglers and Foreign Exchange Manipulators Act, and the same has been communicated to the assessee, Form ITR-U is ineligible.

    Information under DTAA agreements

If information for the relevant assessment year has been received under an agreement referred to in section 90 or section 90A, and the same has been communicated to the taxpayer before the date of furnishing the return, Form ITR-U cannot be used.

    Other notified persons

There may be specific categories of individuals or entities who are notified as ineligible to file Form ITR-U as per notifications issued by the tax authorities.

* * * * * * * * * * * * *

IT Refund: IT Department urges Taxpayers to respond to Past Tax Demands.

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With 2.75 crore refunds already processed, the I-T department has asked taxpayers to respond to outstanding tax demands promptly.

The Income Tax Department has urged taxpayers to address any outstanding tax demands for previous years in order to facilitate faster clearance of refunds for the 2022-23 fiscal year. This is a taxpayer-friendly measure, as it gives taxpayers an opportunity to clarify the status of any outstanding demands and ensure that they receive their refunds as quickly as possible.

The Income Tax Department on September 23, 2023, called upon taxpayers to promptly respond to intimation of outstanding tax demands, adding that it will help in faster processing of income tax returns (ITR) and quicker issuance of refunds.

For the Assessment Year 2023-24, a total of 7.09 crore returns have been filed. Of these, 6.96 crore ITRs have been verified, 6.46 crore returns have been processed, and 2.75 crore refund returns have already been issued as per the latest data from the I-T department.

The Income Tax Department is making every effort to complete the processing of ITRs and issuance of refunds expeditiously, it said in a social media post on X. However, a significant hurdle in achieving this goal is that there are previous outstanding tax demands.

What are pending tax demands?

After you file your returns, the Income Tax Department inspects the tax declarations and if there are any mismatches with your actual tax liability, it issues an “outstanding tax demand” notice.

Section 245(1) of the Income-tax Act, 1961, necessitates offering taxpayers an opportunity to provide their input before adjusting the refund against any existing demand. Taxpayers are required to agree, disagree, or clarify the status of the demand.

Taxpayers who have outstanding demands from previous years will receive notifications from the department. So it has requested the taxpayers to respond to such intimations to enable “cleaning up/reconciliation” of pending demands and facilitate timely issue of refunds. It will not only aid in resolving pending demands but also expedite the timely issuance of refunds.

How to Respond to Outstanding Tax Demands?

In its official website, the Income Tax Department shows how one can respond to outstanding demands. Here are the steps to follow:

To begin the process, taxpayers should visit the official Income Tax Department’s e-filing portal at https://www.incometax.gov.in/iec/foportal/.

Under the ‘e-File’ menu, taxpayers should locate and click on the ‘Response to Outstanding Demand’ option.

In the subsequent screen, taxpayers will find a list of response options. They can select from the following choices:

a) Demand is correct

b) Demand is partially correct

c) Disagree with demand

d) Demand is not correct but agree for adjustment

Submit Your Response: Depending on the chosen response, taxpayers should follow the instructions provided on the portal. If the taxpayer selects ‘Demand is correct,’ they should click on the ‘Submit’ button to confirm their choice and complete the response submission process.

However, if the ‘Demand is correct’ option is confirmed, taxpayers will not have the option to disagree with the demand later and any refund owed will be adjusted against the outstanding demand. Taxpayers also have the option to pay the demand directly by clicking the link under the ‘Pay Tax’ option.

Income Tax Department > Tax Services > Submit Response to Outstanding Tax Demand

CBDT extends deadline for filing ITR return and submitting audit report.

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The government extended the date for filing income tax returns for companies by one month to November 30.

Income Tax Department has extended the deadline for ITR filing for certain categories of taxpayers. This has brought great relief to the taxpayers/institutions falling in these categories and they have also been saved from paying heavy penalties due to delay.

According to the Income Tax Department, till September 5, about 6.98 crore individual taxpayers have filed ITR.

The Income Tax Department has extended the deadline for filing income tax returns for charitable trusts, religious institutions and professional bodies by one month to November 30. The Income Tax Department said in a statement that the due date for filing income tax return in Form ITR-7 for the assessment year 2023-24, which is 31 October 2023, has been extended to 30 November 2023.

Also, the due date for submission of audit report for 2022-23 by any fund, trust, institution or any university or educational institution or medical institution in Form 10B/10BB has been extended by one month to 31 October 2023. Earlier the last date for submission of audit report was 30 September.

ITR-7 is filed by institutions involved in charitable and religious activities, research institutes, professional bodies, political parties and electoral trusts also file tax returns through ITR-7.

The Finance Ministry said in a statement on Monday, the deadline for filing income tax return in Form ITR-7 for the assessment year 2023-24 has been extended from October 31, 2023 to November 30, 2023.

In the current financial year, till mid-September, net direct tax collection has increased by 23.51% to Rs 8.65 lakh crore. The Finance Ministry said that there has been a huge increase in direct tax collection due to more advance tax payment by the companies. During this period, advance tax payment has increased by 21%.

According to the data, net tax collection has been 47.45% of the budget estimate of Rs 18.23 lakh crore for the current financial year. In the last financial year 2022-23, direct tax collection was Rs 16.61 lakh crore.

CBDT Circular: https://incometaxindia.gov.in/pages/communications/index.aspx

Amnesty Scheme for LLPS – MCA issues circular condoning delay in filing Form 3, 4 and 11

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This scheme aims to grant a condonation of delay to LLPs regarding the filing of Form-3, Form-4, and Form-11 from September 1, 2023 to September 30, 2023.
This scheme aims to grant a condonation of delay to LLPs for filing of Form-3, Form-4, and Form-11 from September 1, 2023 to September 30, 2023.

The Ministry of Corporate Affairs (MCA) has notified the Limited Liability Partnership (LLP) Amnesty Scheme. The ministry vide circular number No. 8/2023 issued on 23rd August 2023 condoning the delay in filing of Form-3, Form-4 and Form-11 under Section 67 of Limited Liability Partnership (LLP) Act, 2008 read with Section 460 of Companies Act, 2013.

These forms shall be available for filing from 01.09.2023 onwards till 30.11.2023 (both dates inclusive). Also, the LLPs availing the scheme shall not be liable for any action for delayed filing of the Form-3, Form-4 and Form-11.

Based on the representations received by the government that certain LLPs are finding difficulties in filing Form- 3 (LLP Agreement and changes therein), Form- 4 (Notice of appointment, cessation, change in name/ address/designation of a designated partner or partner and consent to become a partner/ designated partner) and Form- 11 (Annual Return of LLP) for various reasons including due to mismatch in the  master data in electronic registry of the Ministry.

Due to this, the records/data in the electronic registry are also not being updated. Thus, to address these issues, the government has decided to grant one-time relaxation in additional fees to those LLPs who could not file the Form 3, 4 and 11 within the due date and provide an opportunity to update their filings and details in master data for future compliances.

The following are highlights of Amnesty Scheme:

  • The Form-3 and Form-4 would be processed under Straight Through Process (STP) mode for all purposes except for change in business activities.
  • The stakeholders are advised to file these forms in sequential manner i.e., the filing for old events date may be filed first and so on so as to update the master data in proper manner.
  • At the time of filing these forms, the pre-filled data as per existing master data of the LLP shall be provided in each of above mentioned forms but the same shall have the facility to edit. The onus of filing correct data would be on the stakeholders.
  • In case of misrepresentation, the Designated Partner and the professional certifying the form may be liable for adverse action as per provisions of the law.
  • The filing of Form-3 and Form-4 without additional fee shall be applicable for the event dates 01.01.2021 and onwards.
  • For events dated prior to 01.01.2021, these forms can be filed with 02 times and 04 times of normal filing fees as additional fee for small LLPs and Other than small LLPs respectively.
  • The filing of Form-II without additional fee shall be applicable for the financial year 2021-22 onwards.
  • Form-II for previous years (prior to financial year 2021-22) can be filed with 02 times and 04 times of normal filing fee as additional fee for small LLPs and Other than small LLPs respectively.
  • These forms shall be available for filing from 01.09.2023 onwards till 30.11.2023 (both dates inclusive). The LLPs availing the scheme shall not be liable for any action for delayed filing of the Form-3, Form-4 and Form-11.

Source: General-Circular-No-08-20230823