Things You Should Know Before Filing Income Tax For 2024-25?

Changes For ITR Filing 2024-25

Some additions made by the Income Tax Department of India to ITR filing for the Financial Year (FY) 2025 are laid down below in detailed points for one’s reference.

1. ITR-1 & Capital Gains Schedule

People who have long-term capital gains from listed securities till the set amount of Rs. 1,25,000 can now use ITR-1. Please note that people who have short-term capital gains or losses to carry forward cannot use ITR-1.

There are also changes in the Capital Gains Schedule wherein people now have to report their gains separately for periods on or before July 23, 2024.

2. Tax On Buyback Of Shares

From Oct 1st 2024, the liability of paying taxes on buyback of shares has shifted from companies to individual taxpayers.

3. Reporting Payments To MSMEs

From now onwards, income from business or profession are now mandated to disclose the number of days of payments to the Micro, Small, and Medium Enterprises. If the reported payment has been done beyond 45 days, it will not be considered a deductible business expense.

4. Miscellaneous

Some things that haven’t been changed, such as the conditions of filing Income Tax Return are as follows:

• Expenses of more than Rs. 2,00,000 on international travel.

• Electricity Bill of more than Rs. 1 lakh in a year.

• Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) of Rs. 25000 or more ( 50,000 for senior citizens).

• Holds a signing authority in a foreign account.