Returns and Forms Applicable to Individual having Income from Business / Profession for AY 2024-2025
Disclaimer: The content on this page is only to give an overview and general guidance and is not exhaustive. For complete details and guidelines, please refer to the Income Tax Act, Rules and Notifications. |
1. ITR-3 - Applicable for Individual & HUF | ||
---|---|---|
This return is applicable for Individual & Hindu Undivided Family (HUF);
|
2. ITR-4 (SUGAM) – Applicable for Individual, HUF & Firm (Other than LLP) | |||||
---|---|---|---|---|---|
Note:
|
Forms Applicable
1. Form 16A – Certificate u/s 203 of the Income Tax Act, 1961 for TDS on Income other than Salary | ||||
---|---|---|---|---|
|
2. Form 26AS |
||||
---|---|---|---|---|
|
Note: Information regarding (Advance tax/Self Assessment Tax, Details of Refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M,TDS defaults) which were available in 26AS now, will now be available in AIS mentioned below.
3. AIS - Annual Information Statement | ||||
---|---|---|---|---|
|
4. Form 3CB-CD | ||||
---|---|---|---|---|
|
5. Form 15G - Declaration by resident Taxpayer (not being a Company or Firm) claiming certain receipts without deduction of tax | ||||
---|---|---|---|---|
|
6. Form 15H - Declaration to be made by a resident Individual (who is 60 years age or more) claiming certain receipts without deduction of tax | ||||
---|---|---|---|---|
|
7. Form 3CEB | ||||
---|---|---|---|---|
|
Tax Slabs for AY 2024-25
The Finance Act 2023 has amended the provisions of Section 115BAC w.e.f AY 2024-25 to make new tax regime the default tax regime for the assessee being an Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person. However, the eligible taxpayers have the option to opt out of new tax regime and choose to be taxed under old tax regime. The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. In the old tax regime, taxpayers have the option to claim various tax deductions and exemptions.
In case of "non-business cases", option to choose the regime can be exercised every year directly in the ITR to be filed on or before the due date specified under section 139(1).
In case of eligible taxpayers having income from business and profession and wants to opt out of new tax regime, the assessee would be required to furnish Form-10-IEA on or before the due date u/s 139(1) for furnishing the return of income. Also, for the purpose of withdrawal of such option i.e. opting out of old tax regime shall also be done by way of furnishing Form No.10-IEA.
However, in case of eligible taxpayers having income from business and profession option to switch to old tax regime and withdraw the option in any subsequent AY is available only once in lifetime.
Rates of Tax: For Individual (Resident or Non-Resident) less than 60 years of age anytime during the previous year:
|
For Individual (Resident or Non-Resident), 60 years or more but less than 80 years of age anytime during the previous year:
|
For Individual (Resident or Non-Resident) 80 years of age or more anytime during the previous year:
|
Note:
1. The rates of Surcharge under the two tax regimes are as under:
Total Income |
Old Tax Regime |
New Tax Regime |
Rate of Surcharge Applicable | ||
Up to Rs. 50 Lakh | Nil | Nil |
Above Rs. 50 Lakh and up to Rs. 1 Crore | 10% | 10% |
Above Rs. 1 Crore and up to Rs. 2 Crore | 15% | 15% |
Above Rs. 2 Crore and up to Rs. 5 Crore | 25% | 25% |
Above Rs. 5 Crore | 37% | 25% |
Note: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112, 112A and Dividend Income. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%, except when the income is taxable under section 115A, 115AB, 115AC, 115ACA and 115E
2. Rebate u/s 87A: Resident Individuals are also eligible for a Rebate of up to 100% of income tax subject to a maximum limit depending on tax regimes as under:
Total Income | Old Tax Regime | New Tax Regime |
Rebate under Section 87A Applicable | ||
Up to Rs. 5 Lakh |
Tax rebate up to Rs.12,500 is applicable for resident individuals if the total income does not exceed Rs 5,00,000 (not applicable for NRIs |
Tax rebate up to Rs.25,000 is applicable for resident individuals if the total income does not exceed Rs 7,00,000 (not applicable for NRIs |
From 5 Lakhs to 7 Lakhs | NIL |
3. The rate of Health & Education cess remains same in both the regimes.
Surcharge, Marginal Relief and Health & Education Cess
|
Investments / Payments / Incomes on which I can get tax benefit
Section 24 (b) – Deduction from Income from House Property on interest paid on housing loan and housing improvement loan. In case of self-occupied property, the upper limit for deduction of interest paid on housing loan is ₹ 2 lakhs. However, this deduction is not available for persons opting for new tax regime.
Interest on Loan u/s 24(b) allowable is tabulated below:
Nature of Property | When Loan was Taken | Purpose of Loan | Allowable Interest (Maximum Limit) |
Self-occupied | On or after 01/04/1999 | Construction or Purchase of House Property | ₹ 2,00,000 |
On or after 01/04/1999 | For Repairs of House Property | ₹ 30,000 | |
Before 01/04/1999 | Construction or purchase of House Property | ₹ 30,000 | |
Before 01/04/1999 | For Repairs of House Property | ₹ 30,000 | |
Let Out | Any time | Construction or purchase of House Property | No maximum limit |
Tax deductions specified under Chapter VI-A of the Income Tax Act
These deductions will not be available to a taxpayer opting for the new tax regime u/s 115 BAC, except for deduction under Section 80CCD(2) and 80JJAA which will be allowable under new tax regime as well.
80C, 80CCC, 80CD(1) | |||||||||
---|---|---|---|---|---|---|---|---|---|
Deduction towards payments made to:
|
|
80CCD(1B) | |||
---|---|---|---|
Deduction towards payments made to Pension scheme of Central Government, excluding deduction claimed under 80CCD (1) |
|
80CCD (2) | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|
Deduction towards Contribution made by an employer to the Pension Scheme of Central Government:
|
80D | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Deduction towards payments made to Health Insurance Premium and Preventive Health check-up:
Deduction towards medical expenditure incurred on a senior citizen, if no premium is paid on Health Insurance coverage:
|
80DD | |||||
---|---|---|---|---|---|
Deduction towards payments made towards maintenance or medical treatment of a disabled dependent or paid / deposited any amount under relevant approved scheme |
|
Note:
|
80DDB | |||
---|---|---|---|
Deduction towards payments made towards medical treatment of self or dependent for specified disease |
|
80E | |||
---|---|---|---|
Deduction towards interest payments made on loan for higher education of self or relative |
|
80EE | |||
---|---|---|---|
Deduction towards interest payments made on loan taken for acquisition of residential house property where the loan is sanctioned between 1st April 2016 to 31st March 2017 |
|
80EEA | |||
---|---|---|---|
Deduction available only to individuals towards interest payments made on loan taken for acquisition of residential house property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 and deduction should not have been claimed u/s 80E |
|
80EEB | |||
---|---|---|---|
Deduction towards interest payments made on loan for purchase of electric vehicle where the loan is sanctioned between 1st April 2019 to 31st March 2023 |
|
80G | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Deduction towards Donations made to prescribed funds, charitable institutions, etc. Donation are eligible for deduction under the below categories
|
80GGC | |||
---|---|---|---|
Deduction towards donations made to Political Party or Electoral Trust |
|
80GG | |||
---|---|---|---|
Deduction towards rent paid for house and applicable only for those who are self-employed or for whom HRA is not part of salary. Least of the following shall be allowed as deduction:
Note: Form 10BA to be filed for claiming this deduction. |
80IA | |||||
---|---|---|---|---|---|
Undertaking engaged in developing, maintaining and operating any infrastructure facility (only Indian Company), Industrial Parks (any Undertaking), any Power Undertaking, Reconstruction or Revival of Power Generating Plants (Indian Company) shall be entitled to claim deduction (subject to certain conditions) |
|
80IAB | |||||
---|---|---|---|---|---|
Deduction in respect of Profits and Gains by an Undertaking or an Enterprise Engaged in Development of Special Economic Zone (Subject to certain conditions) |
|
80IB | |||||
---|---|---|---|---|---|
Deduction towards Profits and Gains from specified industrial undertakings other than infrastructure development undertakings- 100% of profit for 10 years from the AY in which it is approved by prescribed authority (if approved after 31st March 2000 but before 1st April 2007). The deduction under this section is available to an assessee whose Gross Total Income includes any Profits and Gains derived from the business of:
100% / 25% of profit for 5 / 10 / 7 years as per conditions specified for different types of undertakings from the AY in which it is approved by prescribed authority (if approved before 1st April 1999). |
80IBA | |||
---|---|---|---|
Profit and Gains derived from Developing and Building Housing Projects |
|
80IC | |||
---|---|---|---|
Deduction in respect of certain Undertakings in Himachal Pradesh, Sikkim, Uttaranchal and North-Eastern states (subject to certain conditions) |
|
80IE | |||
---|---|---|---|
Deduction to certain Undertakings set up in North- Eastern states (subject to certain conditions) |
|
80JJA | |||
---|---|---|---|
Deduction in respect of Profits and Gains from Business of Collecting and Processing of Biodegradable Waste (subject to certain conditions) |
|
80JJAA | |||
---|---|---|---|
Deduction in respect of Employment of New Workers / Employees, applicable to assessee to whom Section 44AB applies (subject to certain conditions) |
|
80QQB | |||
---|---|---|---|
Deduction in respect of Resident Authors of certain Books other than Textbooks |
|
Note: Deduction claimed here cannot be claimed elsewhere in the Income Tax Act. |
80RRB | |||
---|---|---|---|
Deduction for Resident Individuals in respect of Royalty on Patents |
|
Note: Deduction claimed here cannot be claimed elsewhere in the Income Tax Act. |
80TTA | |||
---|---|---|---|
Deduction on Interest Received on Saving Bank Accounts by Non-Senior Citizens |
|
80TTB | |||
---|---|---|---|
Deduction on Interest Received on Deposits by Resident Senior Citizens |
|
80U | |||||
---|---|---|---|---|---|
Deductions for a Resident Individual Taxpayer with Disability |
|
Please note: If Taxpayer is claiming deduction u/s 80U then it is recommended to file form 10-IA also before filing of return. Form 10-IA can be filed later also however it is recommended to file form 10-IA along with return of income to avoid any inconvenience later.