CBDT Updates Income Tax Return Forms: Know Who Must File ITR-2 and ITR-3 This Tax Season

The Central Board of Direct Taxes (CBDT) has updated the income tax return (ITR) forms for FY 2023-24 (AY 2024-25), specifically ITR-2 and ITR-3. These forms are essential for many taxpayers, especially for those whose financial situations are more complex.
income tax itr returns itr 1 itr 2

CBDT Updates Income Tax Return Forms: Know Who Must File ITR-2 and ITR-3 This Tax Season

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The Central Board of Direct Taxes (CBDT) has updated the income tax return (ITR) forms for FY 2023-24 (AY 2024-25), specifically ITR-2 and ITR-3. These forms are essential for many taxpayers, especially for those whose financial situations are more complex.
The last date for filing ITR-2 and ITR-3 is set for July 31, 2024, while those required to undergo an income tax audit with business income must submit ITR-3 by October 31, 2024. The tax department is seeking detailed information, including the Legal Entity Identifier (LEI) for refunds over Rs 50 crore, contributions to political parties, and deductions for dependents with disabilities.

Who is required to file ITR-2?

Individuals or Hindu Undivided Families (HUFs) not eligible to file ITR-1, specifically:
- Those without income from the profit and gains of business or profession.
- Individuals or HUFs who do not earn income in the form of interest, salary, bonus, commission, or remuneration from a partnership firm.
- Those who have income to be clubbed with that of another person, such as a spouse or minor child.

Who is required to file ITR-3

-Entities including individuals or HUFs with income under the head "profits or gains of business or profession" who are not eligible to file Form ITR-1 (Sahaj), ITR-2, or ITR-4 (Sugam).
This structure ensures that taxpayers with diverse sources of income or those who have crossed certain financial thresholds provide the necessary detailed information for accurate tax processing.
In the interim Budget 2024, Union Finance Minister Nirmala Sitharaman did not announce any changes in taxation. However, changes may be expected in the full Budget that is to be presented by the new government in July after the 2024 Lok Sabha elections.
End of Article
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