This form is modified by the Income Tax Department every assessment year (AY) for the introduction of new rules, the integration of procedures, and improvements in the compliance levels of the taxpayers.
Propose: For assessment year AY 2024–25, major modifications have been made to the ITR-1 form.
In our extensive blog, let us discuss the changes made and released for AY 2024–25. The new tax regime choices are incorporated, as are extra sections 80CCH for the Agnipath Scheme, better pre-fill data, and easier reporting of house property income.
Overview of ITR-1 Form
The ITR-1, commonly referred to as Sahaj is available only to resident and ordinarily resident (ROR) individuals. It is designed for the resident individual taxpayer with a total income that does not exceed fifty lakh rupees.
This form simplifies the process of filing taxes for the target client, thus making it easy for him or her to meet his or her tax obligations as required by the law.
Sourccs of income include:
Please keep in mind the following information for tax purposes: Please keep in mind the following information for tax purposes:
salary, agriculture, or pension.
– Income under the head ‘house property’, where the income does not represent a loss being carried forward from the earlier years.
– Amount received from other sources as per the definition of total income less the lottery winnings and income from racehorses.
agriculture income up to ₹ 5000.
This form does not apply to individuals who:
Here are the specific scenarios we need to keep track of:Here are the specific scenarios we need to keep track of:
- In cases where you have income from more than one house property.
- In situations with income from winnings from the lottery or income from racehorses.
- The above tax return is useful if you have income falling under the head ‘Capital Gains. ’
- If you are having an income with head Business or Profession you have to pay more taxes.
- Whenever someone is acting as a Director in a certain company.
- If you have invested in unquoted equity shares.
- If on that head you have any brought forward loss or loss to be carried forward under any head of income.
- This seal applies to any person who is claiming any relief under section 90 or section 90A or section 91.
- If the actual agricultural income derived by you exceeds ₹5,000.
Proposed Notes of Change for AY 2024-25
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New Tax Regime Options
The ITR-1 for the assessment year 2024–2025 of the next year has been released and has fields pertaining to the new tax regime under section 115B AC of the income tax act.
The New and the Old auto Tax Regime
Old tax regime permits number of deductions and exemptions but new tax regime provides lesser tax rates but no or very few exempted amount.
| Income Slab (₹) | Old Regime Tax Rate | New Regime Tax Rate |
| Up to 2,50,000 | Nil | Nil |
| 2,50,001 – 5,00,000 | 5% | 5% |
| 5,00,001 – 7,50,000 | 20% | 10% |
| 7,50,001 – 10,00,000 | 20% | 15% |
| 10,00,001 – 12,50,000 | 30% | 20% |
| 12,50,001 – 15,00,000 | 30% | 25% |
| Above 15,00,000 | 30% | 30% |
The new regime is advantageous provided that the taxpayer has no many deductions to claim on his income.
Example:
Old Regime:
– Gross Income: ₹12,00,000
– Deductions (under Section 80C, 80D, etc. ): Rupees two lacs only
– Taxable Income: ₹10,00,000
– Tax Payable: $1,225 (Raw material expenses in the old regime was as follows)
New Regime:
– Gross Income: ₹12,00,000
– Deductions: Nil (since most of deductions are not permitted)
– Taxable Income: ₹12,00,000
– Tax Payable: As per new regime rates about ₹1,35,000 only.
2.Authority of India have fixed an essential and special provision in Indian income tax law under section 80CCH that provides the right of issuing tax credit on Agnipath Scheme.
The Indian government introduced the scheme named Agnipath to recruit youths in the armed forces roles. As per now, in view of Section 80CCH of the Indian tax law that was recently introduced, the contribution made to the Agnipath Scheme is in order to be claimed as tax deduction.
This section particularly allows the deductions of the contributions made by an individual towards the Agnipath Scheme.
Details of Section 80CCH:
Please make sure to take note of the following information
– Maximum Deduction: ₹1,50,000
– Eligibility: Exemptions can include contribution made by the taxpayer towards the Scheme or by any other for the taxpayer. Donations made within the prescribed limit for this write off can be claimed under this heading.
Example:
Contribution made towards the Agnipath Scheme where such contribution is ₹50,000 makes the person entitled to a deduction of ₹50,000 under section 80CCH of the Income Tax Act while arriving at the taxable income.
- Enhanced Pre-filled Data
The Income Tax Department has again, improved pre-fill data in the ITR-1 form to the filings are made easier and with fewer mistakes. This data includes:
– Pay details from the last income tax return filed in Form 16.
– Banks and other financial institution’s interest income.
– Dividend income.
– Details of Tax Deducted At Source (TDS).
– Made single assessments tax payment and advanced tax.
Advantages of the Improved Pre-filled Data
The following points outline the key benefits of our system:
– Accuracy: In our system, the chances of making mistakes are limited because the fields are automatically pre-filled from other credible sources.
– Convenience: One clear advantage for the taxpayers is the time they will spend since we eliminate the need for most of the manual data input.
– Compliance: It ensures that every income and tax deductions are accounted for properly and to the letter.
Key Points:
Please remember the following details for property tax calculation:Please remember the following details for property tax calculation:
– Basic Information: Concerning property, only the simple specifications of the property required include size, location and type.
– Standard Deduction: In accordance with this, a standard deduction of 30% on the net annual value (NAV) of the property would be arrived at the software end, depending upon the details submitted.
– Home Loan Interest: To enable the assessor to get a good computation of the home loan interest (Section 24), one can easily input the amount.
Example:
A person who has a single house property letting out for an annual income of ₹ 3,00,000 is eligible for availing the common deduction for 30% which equates ₹ 90,000. Furthermore, if the individual has home loan interest of ₹1,00,000, such a break up must be included though this information can alter the taxable income on the house property.
| Particulars | Amount (₹) |
| Gross Annual Value (GAV) | 3,00,000 |
| Less: Standard Deduction (30%) | 90,000 |
| Net Annual Value (NAV) | 2,10,000 |
| Less: Home Loan Interest | 1,00,000 |
| Taxable Income from House Property | 1,10,000 |
Step by Step Guide on How to File ITR-1 for AY 2024-2025
Step 1: Also, ensure original approval or any other document that supports a certain capital expenditure or any other permission is available.
Make sure you have the following paperwork before you begin filing your ITR-1
– PAN Card: A permanent account number is given to a person in order to uniquely identify them on tax returns.
– Aadhar Card: In accordance with this, an Aadhar number is required in order to electronically authenticate your return.
– Form 16: Your company provides this form, which describes an employee’s salary and the TDS that is withheld from it.
– Bank Statements: For bills, notes, bonds, debentures, weekly account of interest received.
– Investment Proofs: To support the deductions provided under the numerous sections like 80C, 80D and so on.
– Home Loan Interest Certificate: For assessing the carry forward of the allowance subtracted in computing the income tax charged on interest expenses W. R. T a home loan.
– Details of Other Income Sources: Any other source of income like dividends, rental income and the likes.
Step 2: To begin with, one has to go to the official web-site of Income Tax e-Filing Portal and then login.
The option Go to the home page of the Income Tax e-Filing portal will be displayed, on clicking it, the user needs to feed the login credentials the username and the password.To use the services offered here if you are a new here you will have to register.
How to Register:
- Navigate to ‘Register Yourself. ’
- The selection strategy is as follows: choose the user type ‘Individual’ and press ‘Continue. ’
- Enter your PAN, name Pantry name, date of birth, and residential status among other basic details.
- Give phone numbers, make up a password and fill out the registration form.
Step 3: TDS Return and Form 26AS can be download from the under given link Download Form 26AS
26AS is a consolidated statement of tax which has the details of TDS, TCS, and other taxes paid. This form can be download from the TRACES portal which is accessible through the e-Filing portal.
Steps to Download Form 26AS:
- Go to the e-Filing system.
- Visit ‘My Account’ and click on the ‘View Form 26AS (Tax Credit). ’
- After that, you will be taken to the TRACES’ website; click the ‘Confirm’ button.
- Select the Assessment Year and you can view the Form 26AS.
Step 4: Fill in the ITR-1 Form
Personal Information
Input your personal information, including name, PAN, Aadhaar number, address, and phone number. Verify that these particulars correspond with the information on file with the Income Tax Department.
Income Details
1.Income from Pensions and Salaries: – Enter information from Form 16, such as gross pay and allowances excluded under Section 10 and as well as net pay.
- Income from House Property:
– Type in the property’s gross yearly valuation.
– The typical deduction (30%) will be computed automatically.
– Describe the interest rate on a house loan.
- Income from Other Sources:
– Record interest income from fixed deposits, savings accounts, and other sources.
– There is also where dividend income can be entered.
- Deductions and Taxable Income:
– Keep track of interest received from savings accounts, fixed deposits, and other sources. -Additionally, dividend income can be entered there.
Tax Details
- TDS and TCS:
– Check the TDS information on Form 26AS.
-Verify that the information matches what is entered on the ITR form.
- Advance Tax and Self-Assessment Tax:
– List any advance taxes or self-assessment taxes that were paid throughout the fiscal year.
Tax Computation and Verification
- Compute Total Tax Liability:
– The form will automatically determine the total amount of taxes due based on the entered deductions and income information.
| Field | Description |
| Gross Total Income | Total income from all sources |
| Total Deductions | Sum of all deductions claimed |
| Taxable Income | Gross total income minus total deductions |
| Total Tax Liability | Tax calculated on taxable income |
| Less: TDS | Tax deducted at source |
| Less: Advance Tax | Advance Tax Paid |
| Net Tax Payable | Total tax liability minus TDS and advance tax |
- Select the Tax Regime:
– Select between Section 115BAC’s new tax regime and the previous one.
– Make sure you choose the plan that will benefit you the most in light of your income and deductions.
- Verification:
– Verify the details entered in the form.
– Use Aadhaar OTP, net banking, or other available methods for verification.
Step 4: File the following ITR form for FY 2017-18: ITR-1
After you have gone through all the mentioned aspects while filing the return, the ITR-1 should be filed. An acknowledgment number will be given to you; make sure you keep them for future use.
Steps to Submit:
- Select on the ‘Preview and submit’.
- Count through the form to make sure all the details have been filled as required.
- Click on ‘Submit. ‘
- It is also important to keep record of the acknowledgement number.
Step 6: E-Verify the Return problems that I have noticed in the current society are that the E
–Verify the Return discriminates foreign workers and offers limited opportunities for complaint.
To finish the filing process, E-verification is required. You can e-verify using any of the following methods:
– Aadhaar OTP
– Net banking
– EVC created through bank account or Demat account
– Filing the ITR-V form to the CPC, Bengaluru by posting the signed physical copy of the form.
Steps to E-Verify:
- Select the e-verification method.
- Continue with the instructions that appear on the screen to produce the source of the verification code.
- Click the ‘Submit’ button to finalising the e-verification process.
Conclusion
The modifications in the ITR-1 for the Assessment Year 2024- 25 are made specifically to ease the process of filing Taxes and to also bring in a lot more convenience to the users. These include new tax regime options, whereas Section 80CCH for the Agnipath Scheme has been inserted. Also, there will be improvements on pre-filled data as well as simple reporting on house property to completeness.
These updates are very important because they are intended to facilitate income tax returns filing by the taxpayers especially with greater efficiency and accuracy. With reference to the above changes, taxpayers are in a position to follow guidelines presented in this paper as a definite step by step process to filing the income tax returns.
Frequently Asked Questions(FAQs)
The following changes can be seen in the new tax regime options in the ITR-1 form for AY 2024-25 are :
While filling the ITR-1 form for the AY 2024-25, facilities regarding the new and the older Section 115BAC tax rate structures are provided. Old system of taxation permits taking deductible and exempted amounts but the new system introduces lower rates of taxation coupled with limited provisions on deductions.
How can 80CCH deductions be declared in respect of the Agnipath Scheme in the form of tax returns?
If you are intending to avail of section 80CCH, you have to declare the contribution made in the Agnipath Scheme in the respective block in form ITR-1. The total amount of deduction allowed in respect of any such assessee is limited to rupees 1,50,000/- . Keep the documents you have submitted for them to acknowledge your effort in the project.
Based on this, there always arises the need to understand the implication of having improved prefilled data in the ITR-1 form.
The data that is filled has been made pre-filled and thus makes computation easier while filing as is the case with the pre-filled option of salaries, interest income, dividend income and TDS from reliable sources. This eliminates errors, is efficient and ensures a correct reporting is made. It was further suggested that in most of the cases the taxpayer should always verify the pre-filled data before finalising the return.