ITR filing FY 2024-25: Here’s what is new this year and when to file your ITR

The Indian government recently notified the Income Tax Returns for the Financial Year 2024-25. There are some changes made and some must known factors before filing your tax returns for the year. Unlike the previous year, this year it was revealed only in late April, with several utilities such as the online software/forms necessary for filing the ITR. 

ITR FY 2024-25 – What’s New?

Tax of Buyback Shares

The responsibility to pay tax on buyback of shares has now changed from companies involved to individuals, starting from October 2024. The entire buyback amount including the cost of acquisition is deemed dividend for tax. 

ITR-1 and Capital Gain Timeline

Along with the complete eligibility criteria, if there is a long term gain from listed securities with the threshold of 1,25,000 can now use ITR-1. As announced in the 2024 Budget breakdown, the Capital Gains Schedule has been modified to report gains separately for periods before and on or after July 23, 2024, so that appropriate tax rates can be applied.

Asset and Liability Reporting

The limit for reporting assets and liability has been increased from INR 5 Million to INR 10 Million as per the AL Schedule. A relaxation that is advised to not be taken as an advantage on your assets and liabilities. 

Reporting Payments to MSMEs 

Reporting income payments from businesses must now also have a disclosure of the number of days within which the payments were made into MSMEs (Micro, Small and Medium Enterprises). Any payment made beyond 45 days will not be allowed as a deductible business expense. 

When to file the ITR?

Rather than relying on form 26AS tax and income details, also get the forms like 16, 16A which are usually released by 15 June. Experts advise to file your ITR after getting the forms on 15 June and always review the Form 26AS after the date, confirming no changes in the income or tax figures, to avoid inquiries from the tax authorities, reports Economic Times. 

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