The Income Tax Department has taken a proactive approach by releasing Income Tax Return (ITR) forms three months ahead of the financial year’s end, introducing significant changes that warrant careful consideration, especially for individuals with multiple bank accounts. The forms for the financial year 2023-24 and assessment year 2024-25 are now available, ushering in a transformed tax return landscape.
Key Changes and Instructions
Default Tax Regime:
- The new tax regime is now the default option for the current financial year.
- Tax calculation will be based on the new regime unless taxpayers explicitly choose the old one.
Choice of Regime:
- Taxpayers who do not select any regime will have their tax calculated according to the new regime.
- To avail benefits on savings and investments, taxpayers must explicitly choose the old regime.
Additional Measures for Taxpayers
Form for Opting Out of New Regime:
- Taxpayers using ITR Form-4 must fill an additional form, Form 10-IEA, to opt out of the new regime.
More Detailed Information Required:
- Taxpayers are now mandated to provide more detailed information in their ITR forms, including the explicit mention of all bank accounts.
The proactive release of ITR forms aims to streamline and enhance the tax filing process, pushing taxpayers to be more diligent and well-informed about their choices and the impact on their tax liabilities.
