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For the Financial Year 2024–25, the Income Tax Department has introduced New ITR Form formats, which differ significantly from those used in previous years.
\r\nLet’s break down the complexities of ITR filing.
\r\nUnderstanding the Basics: Types of Income and its Corresponding Forms
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There are five main Heads of Income which are defined by Income Tax Act, 1961:
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The Type of Income you earn determines which ITR Form you should use. Here’s a breakdown:
\r\n\r\nResident individuals (not HUF) with Total Income up to ₹50 lakhs from salary, one house property, and other sources such as interest income.
\r\nNot applicable if;
\r\nYou have Income from Capital Gains, business or professional income, foreign assets or income, agricultural income above ₹5,000, or are a director in a company.
Applicable to Individuals and HUFs not having business or professional income. It covers income from salary, multiple house properties, capital gains, foreign income or assets, and dividend income.
\r\nNot applicable if;
\r\nYou have income from business or profession, in that case, ITR-3 or ITR-4 would be appropriate.
Applicable to Individuals and HUFs having income from business or profession under a normal computation (not presumptive). This includes those maintaining books of accounts or earning income from speculative business, commissions, or intra-day trading.
\r\n\r\nSpecially designed for small businesses or professionals (consultants, doctors, advocates) who opt for **presumptive taxation under Section 44AD (business), Section 44ADA (professionals), or Section 44AE (transporters).
\r\n\r\n**Presumptive Limits
\r\n\r\nThese enhanced limits aims to promote digital payments while simplifying compliance for small taxpayers
\r\n\r\n\r\n\r\n\r\nNote: Filing the wrong form (for instance, ITR-1 instead of ITR-2) can result in a defective return notice from the tax department, prompting you to correct and re-file that.
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Forms beyond ITR-4 (ITR-5, 6, 7) cater to companies, firms, and societies, which usually have dedicated tax professionals
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When filing, many taxpayers are unsure whether to opt for the old regime (with deductions) or the new regime (lower rates, fewer deductions). The choice depends on your specific financial situation and the deductions that are available. Avoid claiming false deductions to secure a refund, as the Income Tax Department has increasingly been issuing notices to taxpayers in recent years, asking for proof of the deductions claimed. It's advisable to carefully evaluate your eligible deductions before filing your return.
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\r\n\r\n\r\nNote: The new regime offers lower tax rates but fewer deductions. Taxpayer should evaluate the beneficial regime before finalising the ITR.
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Following are the most frequent errors taxpayers make – and how to avoid them:
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The ITR filing deadline is July 31 but as per the CBDT Circular released on 27th May 2025 the due date of filing of ITRs are extended till 15th September 2025 (For individuals, HUFs, and other taxpayers not liable for audit). Don’t wait until the last minute – the portal might get congested, or you might face issues like power outages or system glitches.
\r\n\r\nThe return filed during the filing year, may also called as Assessment Year, pertains to income earned during the last financial year (ending March 31). Only income up to this date counts for deductions and claims.
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The 51st GST Council Meeting, spearheaded by the Ministry of Finance, proposed several pivotal amendments and recommendations. These suggestions are poised to redefine the Goods and Services Tax (GST) framework, especially for the gaming industry, which includes both traditional and online gaming platforms.
\r\n\r\nAmong the key recommendations, the Council suggested significant alterations to the CGST Act 2017 and IGST Act 2017. These amendments primarily focus on providing clarity about the taxation of supplies in casinos, horse racing, and online gaming. The aim is to develop a more streamlined taxation process that ensures fairness and transparency in the tax system.
\r\n\r\nA prominent recommendation includes the amendment of Schedule III of the CGST Act 2017. The proposed changes in this schedule will shed light on the taxation process for supplies associated with gaming activities like casinos and horse racing. Such activities form a substantial segment of the entertainment industry. The recommended changes will ensure uniform taxation, fostering a more conducive business environment.
\r\n\r\nThe Council also suggested the addition of a specific provision in the IGST Act 2017. This provision will explicitly define the tax liabilities of suppliers located outside India, who are supplying online money gaming services to recipients in India. This is a significant stride towards plugging potential loopholes in the system and maintaining a level playing field for both domestic and international players in the online gaming industry.
\r\n\r\nThe 51st GST Council Meeting demonstrated the government's dedication to refining the GST framework to ensure it remains relevant, equitable, and adaptable to the dynamic business landscape. The proposed changes underline the necessity for unambiguous regulations and guidelines, particularly in the fast-expanding online gaming sector. As stakeholders, it's imperative for us to stay updated and prepared for these changes. Stay tuned for more information on the implementation of these amendments and their potential impact on businesses in India.
","created_at":"2023-08-02T23:04:18.991655+05:30","updated_at":"2025-06-10T02:00:21.974314+05:30","slug":"recommendations-from-the-51st-gst-council-meeting-","image":null,"keywords":"GST Council Meeting, CGST Act 2017, IGST Act 2017, Gaming Industry, Taxation, Online Gaming, International Suppliers","tags":[{"id":1,"name":"GST"},{"id":7,"name":"Updates"}],"catagory":[{"id":5,"name":"Updates"}],"author":{"id":1,"name":"DEEPAK TAYAL","photo":"https://wraptaxmedia.s3.amazonaws.com/author_photos/Deepak_Tayal_pic.jpg","qualification":"Chartered Accountant","bio":"LLB | BRSR | FAFD | BlockChain | Artificial Intelligence | IFRS"}},{"title":"ONDC and OCEN: Revolutionizing Digital Commerce in India","summary":"ONDC and OCEN are two ambitious initiatives that have the potential to revolutionize the way digital commerce is done in India. ONDC is a pan-India open platform for all kinds of e-commerce transactions, while OCEN is a platform that will enable lenders to provide credit to small businesses and consumers. Together, these initiatives have the potential to make it easier for businesses to sell their products and services online, and they will make it easier for consumers to find the best deals. This will lead to increased competition, lower prices, and more choice for consumers.","content":"The Indian government has launched two groundbreaking initiatives, the Open Network for Digital Commerce (ONDC) and the Open Credit Enablement Network (OCEN), to foster the growth of digital commerce in India. These initiatives aim to establish a competitive and open ecosystem for digital commerce, promising to reshape the way people engage in online shopping and business transactions in the country.
\r\n\r\nONDC serves as a nationwide platform that promotes fair and non-discriminatory exchange of goods and services. Its core objective is to foster innovation and competition within the digital commerce sector by facilitating direct connections between buyers and sellers, eliminating the need for intermediaries. Although still in its early stages of development, ONDC possesses the potential to disrupt the current e-commerce market in India, which is predominantly dominated by a few major players.
\r\n\r\nOCEN operates as a secure and consent-driven platform that grants lenders access to borrowers' credit data. This data enables lenders to evaluate borrowers' creditworthiness effectively, leading to the provision of loans at competitive interest rates. While OCEN is currently in its pilot phase, it has the potential to simplify credit access for small businesses and individuals in India.
\r\n\r\nThe introduction of ONDC and OCEN carries numerous benefits for businesses and consumers in India, including:
\r\n\r\n1. Increased Competition: ONDC will foster a more competitive environment among businesses, resulting in lower prices and improved services for consumers.
\r\n\r\n2. Enhanced Innovation: ONDC will stimulate innovation within the digital commerce landscape, providing businesses with the freedom to explore novel methods of buying and selling goods and services.
\r\n\r\n3. Improved Credit Accessibility: OCEN's implementation will streamline credit access for small businesses and individuals, enabling them to expand their enterprises and enhance their quality of life.
\r\n\r\nWhile ONDC and OCEN present considerable advantages, addressing the following challenges is crucial to ensure their successful implementation:
\r\n\r\n1. Awareness: Educating businesses and consumers about the functionalities and benefits of ONDC and OCEN is essential to ensure widespread adoption and acceptance.
\r\n\r\n2. Infrastructure: Developing India's digital infrastructure is crucial to unlocking the full potential of ONDC and OCEN.
\r\n\r\n3. Regulatory Compliance: Addressing regulatory challenges surrounding data privacy, taxation, and intellectual property rights is imperative to ensure a smooth and compliant implementation of ONDC and OCEN.
\r\n\r\nONDC:
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\r\n- Launched in February 2022
\r\n- Phase 1: Launched in February 2022, focusing on the grocery and food segments.
\r\n- Phase 2: Expected to launch in the second half of 2022, encompassing the electronics and apparel segments.
\r\n- Phase 3: Expected launch in 2023, covering the home and furniture segments.
OCEN:
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\r\n- Launched in December 2021
\r\n- Objective: Facilitating easy credit access for small businesses and consumers.
\r\n- Functionality: OCEN leverages the Account Aggregator framework, allowing lenders to access borrowers' financial data to assess creditworthiness and determine loan terms.
\r\n- Benefits: Anticipated benefits of OCEN include simplified credit access, lower interest rates, faster loan processing times, and increased competition among lenders.
Despite being in the early stages of development, ONDC and OCEN possess the potential to revolutionize India's e-commerce and credit markets. ONDC aims to level the playing field for small businesses and consumers, while OCEN seeks to simplify credit access for businesses. These government-led initiatives reflect India's commitment to promoting digitalization and financial inclusion throughout the nation.
","created_at":"2023-05-31T07:23:30.479778+05:30","updated_at":"2023-07-30T22:44:41.252981+05:30","slug":"ondc-and-ocen-revolutionizing-digital-commerce-in-","image":null,"keywords":"OCEN, ONDC, Open Network for Digital Commerce, Open Credit Enablement Network, Indian e-commerce market, Digital commerce in India, Digital transformation in India, Indian government initiatives, Indian economy","tags":[{"id":7,"name":"Updates"}],"catagory":[{"id":5,"name":"Updates"}],"author":{"id":1,"name":"DEEPAK TAYAL","photo":"https://wraptaxmedia.s3.amazonaws.com/author_photos/Deepak_Tayal_pic.jpg","qualification":"Chartered Accountant","bio":"LLB | BRSR | FAFD | BlockChain | Artificial Intelligence | IFRS"}}]}