Here’s a breakdown of the major changes made in the ITR-1 Form for the Assessment Year 2024-25:
- Default Tax Regime: The new tax regime introduced by the Finance Act 2023, as per Section 115BAC, is now the default tax regime for individuals, Hindu Undivided Families (HUFs), Associations of Persons (AOPs), and Body of Individuals (BOIs). Taxpayers who wish to continue with the old tax regime need to explicitly opt out of Section 115BAC(6) and specify their preferred tax regime.
- Choice of Tax Regime: Individuals with income (excluding income from a business or profession) are required to specify their preferred tax regime in the income tax return filed for the relevant assessment year under Section 139(1).
- Introduction of Section 80CCH: The Finance Act 2023 introduced Section 80CCH, which allows individuals who enroll in the Agnipath Scheme and subscribe to the Agniveer Corpus Fund on or after November 1, 2022, to avail a tax deduction for the entire amount deposited in the Agniveer Corpus Fund.
- Update in ITR Form 1: To accommodate the introduction of Section 80CCH, the ITR-1 Form has been updated to include a new column. This column allows taxpayers to provide detailed information regarding the amount eligible for deduction under Section 80CCH.
