Income Tax E-Filing Updates for AY 2024-25: Key Changes and Guidelines

Introduction

Income Tax E-Filing System for Assessment Year (AY) 2024-25 is now officially operational, providing taxpayers a secure, easy, and convenient online return filing portal. With comprehensive changes in the Income Tax Return (ITR) forms and the e-filing portal, the Central Board of Direct Taxes (CBDT) aims to enhance transparency, accuracy, and compliance by individuals and organizations.

Key Changes in E-Filing for AY 2024-25

CBDT introduced new ITR forms (ITR-1 to ITR-7) for AY 2024-25 with several important changes and additional disclosures. A brief overview of the major changes and highlights is given below:

S.No	Change/Feature	User	Description
1	Tax Regime Choice in ITR	All	The old and new tax regimes have now been offered to taxpayers under the ITR forms for enhanced flexibility.
2	LTCG reporting in ITR-1/ITR-4	Individual/Presumptive	Long-term capital gains (LTCG) under Section 112A, up to ₹1.25 lakh in listed shares/equity MFs, may be reported in ITR-1/4.
3	Disclosures of Expanded Assets & Crypto	All	Disclosing additional fields of foreign assets and virtual digital assets (cryptocurrencies) enhances transparency.
4	Enhanced Donation Disclosure	Trusts/Institutions	ITR-5/6 now requires elaborate disclosures of donations received and their application thereafter.
5	New ITR-V Format	All (except e-verified)	The new ITR-V form contains a QR/barcode, IP address, and stricter signature requirements. Non-e-verified forms must be sent to CPC, Bengaluru within 30 days.
6	Multiple E-Verification Options	All	It is now possible to verify tax returns using Aadhaar OTP, net banking, EVC, or by sending a digitally signed ITR-V via Speed Post to CPC, Bengaluru.
7	Password-Protected Downloads	All	ITR-V and Acknowledgement files are password-protected. Password is PAN cum date of birth.
8	Clause-Level Deduction Choice	All	drop-down lists of deduction claims in ITR-1/4 enhance accuracy and ease.
9	Turnover Threshold Increases	Businesses/Professionals	The turnover threshold under Section 44AD rises to ₹3 crore (if 95%+ digital), and under Section 44ADA, it is ₹75 lakh (if 95%+ digital).
10	Unified Portal Navigation	All	The portal is better designed, faster to load, and has consistent navigation on all devices.

Step-by-Step Guide to AY 2024-25 E-Filing Process

Log in to the E-Filing Portal:
- Visit incometax.gov.in and log in using your Permanent Account Number (PAN) and password.
Choose Assessment Year & Filing Mode:
- Choose AY 2024-25 and select either "Online" or "Offline" (XML upload) filing.
Select the Appropriate ITR Form:
- The portal will suggest the correct ITR form (ITR-1, ITR-2, ITR-3, ITR-4, etc.) based on your profile and your sources of income.
Fill in Details & Upload Documents:
- Details will be auto-filled from Form 26AS, AIS, and TIS for your convenience.
- Manually correct and verify the details as needed.
Verify & Submit Return:
- Verify your return through E-verify using Aadhaar OTP, net banking, or EVC; or
- Print, sign, and send the ITR-V to CPC, Bengaluru within 30 days (Speed Post only).
Download ITR-V/Acknowledgement:
- Download the password-protected ITR-V and Acknowledgement from the portal for your records.

Conclusion

The AY 2024-25 updates intend to enhance e-filing efficiency and ease of use, ultimately boosting compliance and easy tax return filing. Ensure to take advantage of the new features and functions for an improved filing experience.