8 New Changes for ITR-1 Form in FY 2023-24 (AY 2024-25), Must know before filing

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Individuals filing Income Tax Return (ITR) using Form 1- Sahaj for Assessment Year (AY) 2024-25 will encounter some key changes. This form is applicable to resident individuals with a total income up to ₹ 50 lakh during the financial year. Combination of Income can be :

Income From Salary
Income From one House Property
Income From Other Sources
Agriculture income upto Rs.5000

The Income Tax Department has introduced some important changes for taxpayers filing ITR-1 forms in the Assessment Year (AY) 2024-25.

Here’s a breakdown of the New Features in ITR -1:

1. New Tax Regime as Default:

The new tax regime is now the default option for taxpayers filing ITR-1.
A new question has been added: “Do you wish to exercise the option under section 115BAC(6) of opting out of the new tax regime?” The default answer will be “No.”
If you want to opt-out of the new regime, select “Yes.”

2. Bank Account Details:

You will now need to specify the type of bank account (savings, current, etc.) while providing your bank details.
The option to select a specific account for receiving tax refunds has been removed. Refunds will be credited to one of your pre-validated bank accounts after processing the return.

Important Note Regarding Refunds:

From AY 2024-25 onwards, you no longer need to specify an account for receiving tax refunds in your ITR.
The refund will be credited to one of your pre-validated bank accounts.
Ensure your PAN card is linked to the bank account you want to receive the refund in.
Eligible account types for receiving refunds include savings, current, cash credit, overdraft, and non-resident ordinary accounts.
Closed, invalid, blocked, or disputed accounts will not receive refunds.

Recommendation:

Before filing your ITR, verify the pre-validation status of your bank accounts to avoid delays in receiving your tax refund.

3. Standard Deduction:

The standard deduction of Rs. 50,000 under section 16(ia) is now available in the new tax regime as well, for salaried individuals.

4. Family Pension:

Deduction for family pension under section 57(iia) is also allowed in the new tax regime under “Other Sources.”

5.Chapter VI A Deductions New schedules for:

(5A) 80GGC: deductions with respect to donations made by taxpayers towards political parties or any electoral trusts

(5B) 80U: Deduction for Disabled Individuals

(5C) 80DD: Deduction for Medical Treatment of dependent disabled person

have been added to Chapter VI A to capture additional details for claiming deductions under these sections.

If you claim deductions under sections 80DD (disability) or 80U (medical treatment), it’s highly recommended to file Form 10-IA along with your ITR. While filing Form 10-IA later is technically possible, you will need to submit a revised return to benefit from the claimed deduction.