Significant Changes in India Income Tax Return Forms for FY 2023-24

1. Increased Scrutiny on Deductions

The Income Tax Department, utilizing artificial intelligence, has tightened regulations on tax deductions. Taxpayers are now required to provide additional details on various fronts, including political party donations, disabled dependents, and high-value life insurance policies. The aim is to prevent false claims and ensure the accuracy of deductions under Section 80GGC.

Also Read: Significant Changes in India Income Tax Return Forms for FY 2023-24

2. Political Party Donations under the Scanner

Donations to political parties under Section 80GGC now require a meticulous breakdown. Taxpayers must provide not only the contribution amount but also details such as the mode of payment and the transaction number linked to bank transfers. This granular scrutiny aims to thwart any attempts at inflating claims for tax deductions.

3. In-depth Reporting on Life Insurance Policies

Taxpayers receiving annual bonuses from life insurance policies face a new reporting requirement. The ITR forms now feature a dedicated column for declaring bonus payments received during the financial year. Additionally, individuals must disclose whether money received from high-premium life insurance policies is taxable, ushering in greater clarity on the taxation of life insurance proceeds.

4. Comprehensive ESOP Reporting

Employees with stock options from select startups now face a more comprehensive reporting process. Alongside tax amounts and linked years, taxpayers must provide the PAN of the eligible startup and the Department for Promotion of Industry and Internal Trade (DPIIT) registration number to claim ESOP-related tax benefits.

Also Read:
ITR Filing Income Tax Return Forms for FY 2023-24
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Significant Changes in India Income Tax Return Forms for FY 2023-24

5. Crypto Investments and Online Winnings Disclosure

The rising prominence of virtual assets and online earnings has prompted the tax department to seek detailed disclosures. Taxpayers must now provide quarter-wise breakdowns of their crypto investments under ITR-1, 2, and 4. Moreover, online game winnings are now explicitly addressed in Schedule OS, ensuring a thorough examination of income from online games.

6. Cash Turnover Disclosure in ITR-4

For businesses filing under ITR-4, a new column requires the disclosure of cash turnover or gross receipts. This aims to ensure transparency in financial transactions, with the turnover threshold for presumptive taxation under Section 44AD raised to INR 3 crores.

7. Companies Face Enhanced Reporting Requirements

ITR-6, tailored for companies, introduces several additional reporting requirements. These include the Legal Entity Identifier (LEI), MSME registration number, reasons for tax audits under Section 44AB, disclosure of winnings from online games taxable under Section 115BBJ, and details on virtual digital assets.

Also Read: Significant Changes in India Income Tax Return Forms for FY 2023-24

8. Emphasis on Timely Payments to MSMEs

Acknowledging the importance of timely payments to micro or small enterprises, ITR-6 now incorporates clauses requiring companies to report sums payable to such entities.

In order to the significant changes in India Income Tax Return Forms for FY 2023-24, As taxpayers gear up for the ITR filing season, the changes introduced by the CBDT demand meticulous attention.

Also Read:
ITR Filing Income Tax Return Forms for FY 2023-24
7 Key Advantages of e-Filing Income Tax Returns in India
Significant Changes in India Income Tax Return Forms for FY 2023-24

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7 Key Advantages of e-Filing Income Tax Returns in India

1. Complete Transparency and Confidentiality on the e-Filing Portal

The e-filing portal ensures transparency and confidentiality. You can file your tax returns honestly, with only those with whom you share your e-filing user ID and password able to access your data.

Also Read: 7 Key Advantages of e-Filing Income Tax Returns in India

2. Safe and Secure e-Filing Process

The e-filing portal is built with the latest internet security technology, ensuring a safe user experience. There’s no fear of discrimination; all Indian citizens receive the same services.

3. Convenient DIY Filing from Home

You can file your Income Tax Returns from the comfort of your home using the straightforward and regularly updated e-filing portal. No need for a qualified accountant or standing in queues; the portal is accessible 24*7.

4. Easy Correction of Errors on the e-Filing Portal

Correcting errors is a simple online process. You can edit your form multiple times before saving and submitting it. Digital forms eliminate the need to refill information in case of mistakes.

5. Organized Paper-Free Records and Access to the 26AS Form

E-filing eliminates physical paperwork, organizing your information by year. Access and maintain well-organized paper-free records, including the view of your 26AS Form.

Also Read: 7 Key Advantages of e-Filing Income Tax Returns in India

6. Faster Income Tax Refunds with Online Verification

The online verification process makes it easier for the Income Tax Department to verify your information, leading to faster processing of refunds. Receive SMS alerts and use the e-filing portal to track the status of your refund.

7. Immediate Confirmation and Online Query Status

Receive an immediate e-verification message upon filing your returns. No need for paper cheques; use e-payment modes. Receive an email confirmation upon completing the e-verification process. Submit and track the status of your queries using the e-Nivaran service on the Income Tax website.

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Comparing Old vs New Income Tax Rules: Key Amendments

The government has raised the tax rebate limit from Rs 5 lakhs to Rs 7 lakhs in the old tax system. As a result, individuals earning up to Rs 7 lakhs don’t have to pay any taxes under the new tax system.

Streamlined Tax slabs

Comparing Old vs New Income Tax Rules: Budget 2024 – In the 2023 Budget amendments, the tax exemption limit was increased to Rs 3 lakhs, accompanied by revised tax slabs.

☞ Income up to Rs 3,00,000: Nil
☞ Income from Rs 3,00,001 to Rs 6,00,000: 5%
☞ Income from Rs 6,00,001 to Rs 9,00,000: 10%
☞ Income from Rs 9,00,001 to Rs 12,00,000: 15%
☞ Income from Rs 12,00,001 to Rs 15,00,000: 20%
☞ Income above Rs 15,00,001: 30%

Old Tax Regime Overview

As per Comparing Old vs New Income Tax Rules last year, Under the old tax system, taxpayers had access to more than 70 exemptions and deductions, like Home Rent Allowance (HRA) and Leave Travel Allowance (LTA). These deductions helped lower taxable income and reduce the amount of taxes owed.

Section 80C was a highly popular and generous deduction that allowed taxpayers to reduce their taxable income by up to Rs. 1.5 lakh.

Income Tax Slabs 2023-24 (Old Regime)

☞ Up to Rs 250,000: Nil
☞ Rs 250,001 to Rs 500,000: 5%
☞ Rs 500,001 to Rs 1,000,000: 20%
☞ Above Rs 1,000,000: 30%

Additional Considerations for Old Tax Regime

For individuals who are 60 years or older (senior citizens), the minimum taxable income limit is Rs 300,000. For those who are 80 years or older (super senior citizens), the minimum taxable income limit is Rs 500,000.

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