New Changes in ITR Form AY 2023-24
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ITR Form AY 2023-24 has been notified by CBDT . Download
ITR-1 to ITR-6 for the current financial year, 2022-23 (AY 2023-24). The ITR forms were notified on February 10, 2023. The ITR-7 form was notified by the government on February 14, 2023.
Refer Video New ITR Form AY 2023-24 I How to Choose the Right One I Step by Step guide I CA Satbir singh
CBDT vide Notification No. 4/2023 dated 10 February 2023 has notified the Income Tax Return (ITR) Forms for Financial Year (FY) 2022-23 pertaining to Assessment Year (AY) 2023-24. The notified forms include ITR-1 (SAHAJ), ITR-2, ITR-3, ITR-4 (SUGAM), ITR-5, ITR-6, ITR-V and the ITR Acknowledgement.
“The new ITR 1 and 2 forms notified by the CBDT are broadly similar to that of the previous year with some additional details required to be filed for VDA assets.
Video on Key changes in ITR AY 2023-24
Old Income Tax Regime Vs New Tax Regime:
There is a new questionnaire in ITR 3 and ITR 4 that whether you have opted out of New Tax Regime in earlier years
ITR form Changes for Salaries:
There is a new disclosure for the income from retirement benefit account under schedule salary. Income taxable during the previous year on which relief u/s 89A was claimed in any of the earlier previous years should be reported
ITR form Changes for Capital Gains
Tax on earnings from crypto assets
There is a separate schedule for VDA that requires details like the date of acquisition, date of transfer head under which income to be taxed (capital gain), and cost of acquisition for transfer of VDA.”
If VDA is treated as capital gains, we need to provide quarterly breakup under Capital Gains Schedule
VDA is taxable @ 30% in Schedule SI ( Special Income)
Tax provisions for taxation of VDAs was introduced from FY 2022-23 hence the addition of new schedule is in line with the expectation.”
ITR form Changes for Other Sources:
If the retirement benefit account is treated as other income, there is a new disclosure requirement under Other Sources. Income taxable during the previous year on which relief u/s 89A was claimed in any of the earlier previous years should be reported
Revised Return
As per the modified norms, individuals on whom search and seizure operations have been carried out by tax officials can now file revised return under section 153 C on the basis of self-assessment of their undisclosed wealth in ITR-1.
Additional Disclosure to safeguard:
If you are a foreign institutional investors (FII/FPI), SEBI registration number needs to be provided
There is a slight change in Balance sheet reporting. As per New ITR forms released, Advances received from persons specified in Sec 40A(2)(b) of income tax act and other persons needs to be reported under Advances in Source of Funds
As per new income tax forms released, turnover and income from Intraday trading needs to be reported under Trading Account. These are new fields introduced.
A part from above , there are no major changes in the ITR forms notified for 2022-23 (AY 2023-24).
There is no change in eligibility criteria regarding who can file the ITR-1 form. ITR1, also known as Sahaj, is applicable for individuals who are resident individuals and whose total income does not exceed Rs 50 lakh. The sources of income must be salary income, one house property, other sources such as interest income, dividend income, etc., and agricultural income, which can only be up to Rs 5,000.
ITR-1 cannot be filed by individuals who are either directors in a company or holding unlisted equity shares. Individuals whose tax has been deducted under Section 194N (TDS on cash withdrawal from banks) or have income tax liability for ESOPs are barred from using ITR-1 form for filing tax returns. Hindu undivided families (HUFs) cannot use ITR-1 to file their tax return for FY 2022-23.
ITR-2 can be used by individuals or HUFs provided they do not have income from business or profession. This means that any individual having capital gains or losses from sale of assets such as equity shares, mutual funds, house property, etc., can report gains or losses to the tax department via ITR-2. Similarly, if the taxpayer has more than one house property or his/her status is non-resident, then ITR-2 has to be used to file a tax return.
ITR-3 is used by individuals or HUFs having income from businesses or professions. If an individual has opted for the new tax regime in the previous financial years, they are required to provide the financial year in which the new tax regime option was exercised and the acknowledgement number for Form 10E.
According to income tax laws, if an individual opts for the new tax regime, they will have to continue with the same tax regime. Unlike salaried individuals, they do not have the option to choose a tax regime every financial year.
ITR-4 forms is for individuals having a business or profession and have opted for the presumptive scheme under the Income-tax Act, 1961. The ITR form can be used by individuals, HUFs, firms (other than Limited Liability Partnership firms), having total income up ..
ITR-4, also known as Sugam, cannot be used by individuals who are either directors in a company or have invested in unlisted equity shares or have deferred income tax on ESOPs or have agricultural income exceeding Rs 5,000. Further, non-residents cannot use ITR-4 to file their tax returns.
ITR-5 is for taxpayers other than individuals, HUFs, companies or those filing ITR-7. ITR-5 is usually used by LLPs, cooperative societies and so on.
ITR-6 is used by companies.
The last date for filing ITR for FY 2022-23 for individuals (whose accounts are not required to be audited) is July 31, 2023.