SAHAJ and SUGAM: Decoding CBDT’s Latest ITR Forms for Individuals and Businesses

The Central Board of Direct Taxes (CBDT) has notified the Income Tax Return (ITR) Forms ITR-1 (SAHAJ) and ITR-4 (SUGAM) for the Assessment Year (A.Y.) 2024-25. This development is a significant step in the domain of tax compliance and reporting in India. Let’s delve into the details of this notification, its implications, and the specifics of the ITR forms.

Notification Details:

  • Notification Number and Date: The notification, numbered as No. 105/2023, was issued on December 22, 2023.
  • Effective Date: These forms will come into effect from April 1, 2024.

ITR-1 (SAHAJ) Form:

  • Targeted Taxpayers: This form is designed for individual taxpayers.
  • Income Criteria: It applies to individuals with income from salary, one house property, other sources like interest, and agricultural income up to Rs. 5,000.
  • Simplicity: ITR-1 is known for its simplicity and is typically used for straightforward tax situations.

ITR-4 (SUGAM) Form:

  • Targeted Taxpayers: This form is applicable to individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships – LLPs).
  • Income Criteria: It’s suitable for those with total income up to Rs. 50 lakh. This includes income from business and profession computed under sections 44AD, 44ADA, or 44AE.
  • Simplification: Similar to ITR-1, ITR-4 is also designed to simplify the tax filing process for its eligible taxpayers.

Deadline for Filing:

  • Filing Deadline: The last date to file these forms for the FY 2023-24 (AY 2024-25) is July 31, 2024, subject to any extensions by the government.

Applicability and Restrictions:

  • ITR-1 Restrictions: It cannot be used by individuals who are directors in a company, have invested in unlisted equity shares, or have certain specific financial circumstances like TDS on cash withdrawals under section 194N or deferred income tax on ESOPs.
  • ITR-4 Eligibility: It is applicable to residents of India with specific types of business or professional income, and the total income should not exceed Rs 50 lakh.

Importance of Filing ITR:

Filing an ITR is essential for various reasons, including claiming income tax refunds, applying for visas or loans, carrying forward losses, and ensuring compliance with tax laws.

Compulsory Filing for Certain Income Brackets:

According to income tax laws, individuals and businesses with income above certain thresholds are required to file their ITRs. This includes all registered companies, regardless of profitability, and individuals whose income exceeds the prescribed limits.


This notification marks an important step towards streamlining the tax filing process in India. The introduction of simpler forms like ITR-1 and ITR-4 aims to ease the burden of tax compliance on individual taxpayers and small businesses. It is crucial for taxpayers to understand the applicability and restrictions of these forms to ensure accurate and timely filing of their tax returns.



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