What Changes are Made in ITR-1 for AY 2024-25

What Changes are Made in ITR-1 for AY 2024-25

The tax season for the assessment year 2024-25 is here! You need to file your income tax returns for the financial year 2023-24 by July 31, 2024, if you are an individual, part of a body of individuals (BOI), or an association of persons (AOP). Filing on time means no late fees!

Who Should Use ITR-1 (Sahaj Form)?

ITR-1, also known as the Sahaj Form, is for resident individuals with a total income of up to ₹50 lakh. Your income can include:

  • Salary or pension
  • Income from one house property
  • Family pension income
  • Agricultural income (up to ₹5,000)
  • Other sources like interest from savings accounts, deposits (bank/post office/cooperative society), tax refund interest, enhanced compensation interest, and family pension.

How to File ITR-1 on the E-Filing Portal

You can easily file your ITR-1 online using the Income Tax Department’s e-filing portal. Here’s how:

  1. Register/Login: Make sure you are registered on the e-filing portal. If not, sign up with your PAN details.
  2. Pre-Filled Sections: The form has some pre-filled sections such as Personal Information, Gross Total Income, and Total Deductions. Validate and edit these as needed.
  3. Review and Submit: Review your tax computation in the summary section and submit your return.

Important Changes in ITR-1 Form

  1. Tax Regime Selection:
    • The New Tax Regime is now the default. This change comes from the Finance Act 2023 under Section 115BAC. If you prefer the old tax regime, you must opt-out of the new one in your return.
    • Those without business or professional income need to specify their preferred tax regime when filing their return.
  2. New Deduction Section – Section 80CCH:
    • Introduced by the Finance Act 2023, Section 80CCH allows tax deductions for contributions to the Agniveer Corpus Fund. If you joined the Agnipath Scheme and contributed to this fund after November 1, 2022, you can claim a deduction for the entire amount deposited.
    • ITR-1 Form has a new column for entering details about this deduction.

Tips for a Smooth Filing Experience

  • Collect Documents: Gather all necessary documents like Form 16, interest certificates, and investment proofs before you start.
  • Verify Pre-Filled Data: Always double-check the pre-filled information for accuracy.
  • Use the Offline Utility: If you have a slow internet connection, use the offline Excel utility to fill your form and then upload it to the portal.
  • Save and Review: Regularly save your progress and review all sections before submitting.

By following these simple steps and keeping these changes in mind, you can easily file your ITR-1 and stay on top of your tax obligations. Happy filing!

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