Attention Income Tax Payers... Things to Know Before Filing ITR!?

The Income Tax Department has released a form for filing Income Tax Returns 3 months before the end of the financial year (Assessment Year 2023-24). The Income Tax Department has released the Income Tax Return form for the current financial year. This time also many changes have been made to the form. The government has implemented a new tax regime from 2023-24. Hence, taxpayers should now be very careful while filing income tax returns. The Income Tax Department has released the form for filing an Income Tax Return (ITR) 3 months before the end of the financial year. This time the department has made major changes in the return filing form. Hence, taxpayers should be very careful while selecting the ITR form and filing the return. The Income Tax Department has released the Income Tax Return form for the financial year 2023-24 and assessment year 2024-25.
The department said that the new tax system will be in default mode i.e. regular system from the current financial year. That means the taxpayer's tax will be calculated based on the new tax system only. If taxpayers have to opt for the old tax regime, they have to choose the option accordingly. If a taxpayer does not specifically opt for any tax system, his tax will be calculated as per the new tax system. Therefore, taxpayers who want to save tax on their savings and investments should opt for the old option.Tax experts say that ITR Form 1, which is specifically for working people, is inherently linked to the new tax system. That means if taxpayers want to take advantage of the tax savings, they have to opt for the old tax system. If you have bought insurance plans or invested under 80C, you have to give up the new option to get a tax exemption. Taxpayers who file ITR Form-4 will have to fill out another form to opt out of the new tax system. The department has issued Form 10-IEA to them. When you file your ITR, the department will ask you whether you want to opt out of the new levy under section 115PAC(6). If you answer no, then your ITR form will be opened after calculating your tax as per the old system. If you have answered yes, then by filling out Form 10-IEA, tax calculation will be done as per the old method.
The Income Tax Department has also said that henceforth taxpayers will have to provide additional information in the Income Tax account form. It is mandatory to mention all bank accounts from this method. That means if a person has more than one bank account, they have to give all their details while filing an ITR. The Income Tax Department has also created a formal column for this in the ITR form.
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Sowmiya Sriram

26/12/2023 11:47 AM