Filing the Wrong ITR? 5 Key Changes to Avoid Costly Mistakes

Almost every year, the Income Tax Department modifies the ITR forms by changes made to the Income Tax Act. Similar to past years, the tax agency has modified a few ITR forms for FY2023–24 to request more information from taxpayers. The application of forms for various taxpayers in this assessment year is one item that hasn’t been altered.

The Finance Act 2023 revisions have resulted in several new reporting requirements and modifications for the Central Board of Direct Taxes (CBDT).

July 31, 2024, is the deadline for filing tax returns. On the other hand, taxpayers with company income who are audited for income taxes may submit forms using ITR-3 before October 31.

There are seven different tax return forms available from the tax department: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7.

The deadline for filing tax returns on two ITR forms, ITR-1 (SAHAJ) and ITR-4 (SUGAM), is July 31, 2024, if no extension is granted. On December 22, 2023, the notification for ITR-1 and ITR-4 for FY 2024–2025 was released.

What If You End Up Filing The Wrong ITR Form?

The Income Tax (I-T) Department permits taxpayers to file a revised return if they file the incorrect tax return form or ITR. There is no limit on the number of times a taxpayer may file a revised return during a particular fiscal year. 

Nevertheless, the income tax regulations provide that the penalty can be 100% to 300% of the tax amount due but not paid if the tax authorities determine that the taxpayer has purposefully concealed or underreported income and is engaged in tax evasion. Given this and the modifications made to different ITR forms by the tax department, the taxpayer must determine which ITR form applies to them.

Some Of The Key Changes In Various ITR Forms

A Legal Entity Identifier (LEI), a distinct 20-character alpha-numeric identifier used to identify parties participating in financial transactions globally, is required for ITR forms 2, 3, 5, and 6. Taxpayers who wish to seek a refund of at least Rs 50 crore must provide their LEI.

2. Requirements For Capital Gains Accounts Scheme Disclosure

In contrast to the prior year, taxpayers utilizing ITR forms 2, 3, 5, and 6 must include all relevant information about the capital gains account plan, not simply the amount deposited. The IFSC code, account number, and date of deposit are among the extra information that is now needed by the updated Schedule CG.

3. Contributions Given To Political Parties

The following information must be included in the new Schedule 80GGC, which is relevant to ITR forms 2, 3, 5, and 6, to reveal contributions made to political parties:

  1. Date of Contribution
  2. Contribution Amount (including breakdown of cash and other modes)
  3. Eligible Contribution Amount
  4. Transaction Reference Number for UPI transfer or Cheque Number/IMPS/NEFT/RTGS
  5. IFSC Code of the Bank.

4. Details Of The Deduction For Medical Care

Details for deducting medical treatment costs and maintenance for a dependant with a handicap must be submitted individually in Schedule 80DD (not under Schedule VI-A).

Required information includes:

  1. Nature of the disability
  2. Dependent kind (spouse, child, parent, sibling, brother, sister, or HUF member)
  3. PAN of the dependent
  4. Number from Aadhaar for the dependent
  5. Date of submission and Form 10-IA UDID Number acknowledgement number.

5. Agniveer Corpus Fund Donation

Through the Finance Act of 2023, Section 80CCH of the I-T Act was added, enabling anybody submitting returns (ITR forms 1, 2, 3, or 4) to deduct money from their deposits in the Agniveer Corpus Fund. To provide the amount that can be deducted, a column labelled “PART C – DEDUCTIONS AND TAXABLE TOTAL INCOME” has been included.

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Stuti Talwar

Expressing my thoughts through my words. While curating any post, blog, or article I'm committed to various details like spelling, grammar, and sentence formation. I always conduct deep research and am adaptable to all niches. Open-minded, ambitious, and have an understanding of various content pillars. Grasp and learn things quickly.

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