New Sahaj, Sugam ITR Forms for AY 2024-25: Enhanced Disclosures and Early Notification

Published on: Wed Jan 03 2024

Kapil Sharma

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Kapil Sharma, a second-year Bachelor of Commerce (Honours) student at Shaheed Bhagat Singh College, University of Delhi. Beyond academics, I'm a freelance writer with publications in Asiana Times. My journey blends commerce and creativity as I navigate both the academic and freelance worlds, contributing my unique perspective to each endeavor.

The Central Board of Direct Taxes (CBDT) has notified ITR Forms 1 (Sahaj) and 4 (Sugam) for the assessment year (AY) 2024-25, bringing key changes that impact a large number of small and medium taxpayers. These revised forms introduce stricter disclosure requirements and were released early, in December 2023, to facilitate timely filing.

Mandatory Details

Cash Receipts: Taxpayers must now report all cash receipts exceeding Rs 2 lakh during the previous financial year. This measure aims to curb tax evasion through cash transactions.

Bank Accounts: Disclosure of all domestic bank accounts held at any time during the previous year, along with their type, is mandatory. This enhances transparency and provides the tax authorities with a comprehensive view of an individual's financial resources.

Eligibility and Coverage

ITR-1 (Sahaj):

Applicable for resident individuals with total income up to Rs 50 lakh.
Covers income from salary, one house property, other sources (interest), and agricultural income up to Rs 5,000.
Excludes individuals with taxable capital gains, business/profession income, unlisted equity investments, or company directorships.

ITR-4 (Sugam):

Applicable for individuals, Hindu Undivided Families (HUFs), and non-LLP firms with total income up to Rs 50 lakh.
Covers income from businesses and professions computed under presumptive basis schemes (Section 44ADA, 44AD, 44AE).

Additional Features

Agniveer Deductions: A dedicated section for deductions under Section 80CCH allows taxpayers to claim benefits for contributions towards the Agnipath scheme for young recruits in the armed forces.

Early Notification: Unlike previous years where ITR forms were released in March/April, this year's notification in December provides taxpayers with ample time to understand the changes and plan their filings.

Statistical Context

Over 5 crore (50 million) ITRs are filed annually in India.
ITR-1 and ITR-4 cater to a significant portion of these filings, primarily from salaried individuals and small businesses.
Increased disclosure requirements through cash receipts and bank account details are expected to improve tax compliance and revenue collection.

The revised ITR forms reflect the government's focus on enhanced transparency and tax compliance. Taxpayers, particularly those filing through Sahaj and Sugam, need to be aware of the new filing requirements and ensure accurate disclosure of all relevant information. The early notification also presents an opportunity for individuals to familiarise themselves with the changes and prepare for timely filing.

By focusing on stricter disclosure and improved transparency, these changes aim to streamline the tax filing process and promote a more robust tax system in India.

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