Key Changes Applicable in ITR-4 form for AY 2024-25

The Income Tax Department has introduced some key changes to the ITR-4 form for the Assessment Year (AY) 2024-25. These changes are designed to improve transparency and ensure compliance with recent tax law updates.  Whether you're a seasoned tax filer or this is your first time using ITR-4, understanding these modifications will help you file your return accurately and efficiently.

Here's a breakdown of the key changes applicable to ITR-4 for AY 2024-25:

Disclosure of all bank accounts:

For the first time, you'll need to provide details of all your bank accounts held in the previous year, including the type of account (savings, current, etc.). This is a new requirement aimed at enhancing transparency.

New tax regime as default:

 A significant shift this year is that the new tax regime is now the default option. If you prefer the benefits of the old tax regime with traditional deductions, you'll need to specifically opt out by submitting Form 10-IEA along with your ITR-4.

Deduction for Agniveer Corpus Fund:

 A new column has been added to claim deductions for contributions made to the Agniveer Corpus Fund under Section 80CCH. This provision applies to individuals enrolled in the Agnipath defense recruitment scheme.

Increased turnover limit for presumptive taxation:

If you avail the presumptive taxation scheme under Section 44AD, you'll benefit from an increased turnover threshold of Rs. 3 crore.  The ITR-4 form now includes a new "Receipts in Cash" column specifically for this purpose. However, to qualify for the scheme,  your cash receipts cannot exceed 5% of your total turnover.

Additional disclosures: The revised ITR-4 form also mandates reporting of:

Legal Entity Identifier (LEI) details (if applicable for businesses)
Acknowledgement number of the Audit Report and Unique Document Identification Number (UDIN) (for taxpayers liable for audit under Section 44AB)
Details of payments overdue to MSMEs (Micro, Small and Medium Enterprises) beyond the prescribed time limit
Winnings from online games taxable under Section 115BBJ (a new tax levied on online gaming income)
Remember, these changes are in line with the Finance Act, 2023, and aim to create a more transparent tax filing system. By familiarizing yourself with these updates, you can ensure a smooth and accurate ITR filing experience.

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