The Central Board of Direct Taxes (CBDT) vide Notification No. 4/2023 in G.S.R 91(E) dated 10-02-2023 by Income-tax (1st Amendment) Rules, 2023 has notified the Income Tax Return Forms (ITR Forms) ITR-1 to ITR-6 for the Assessment Year (AY) 2023-24 relevant to the financial year (FY) 2022-23.
CBDT has notified ITR Forms SAHAJ ITR-1, ITR-2, ITR-3, SUGAM ITR4, ITR-5, ITR-6, ITR-V and ITR- Ack for the Assessment Year 2023-24 by this notification. With this, CBDT notifies ITR forms well in advance to enable the filing of returns from the beginning of the ensuing assessment year.
Last year, the ITR forms for AY 2022-23 were notified on 30.03.2022. This year, the government has notified the ITR forms much earlier than the beginning of the new financial year and hence taxpayers will get sufficient time to prepare for amendments.
The notified ITR forms do not contain any major amendments or changes compared to the preceding year except a few to incorporate the changes or amendments made by the Finance Act of the relevant year to incorporate the changes or amendments in the Finance Act of the relevant year.
Key Changes in ITR forms for AY 2023-24 are listed below-
1. Schedules for disclosing Income from Vitual Digital Assets (VDAs)/Crypto currency:
a) A separate Schedule VDA Income from the transfer of virtual digital assets is added in the Schedule Capital Gain to disclose the date of acquisition, cost of acquisition, date of transfer, and the consideration amount in respect of VDAs.
b) The Schedule SI on ‘SPECIAL RATES OF TAXATION’ contains tax under section 115BBH (Income from transfer of virtual digital asset).
2. Income from Intraday trading is required to be disclaosed separately with its Turnover. Turnover from Intraday Trading & Income from Intraday Trading is required to be disclosed in Part A of the Trading Account.
3. Advances received from persons specified in section 40A(2)(b) are required to be disclosed separately in the Balance Sheet.
4. No Common ITR form, which was released for public consultation in November 2022, have been notified.
5. Disclosure on selection of New Tax regime: The new ITR forms require to disclose whether the new regime was opted in the last assessment year and to select the assessment year in which it was opted. Additionally, another question has been inserted asking whether the new tax regime was opted out in any of the previous year(s) and is also required to mention the details of Form 10IE.
6. TCS claim for other PAN is enabled in the ITR forms like the TDS schedule.
ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler Forms that cater to a large number of small and medium taxpayers. Sahaj can be filed by an individual having income upto Rs. 50 lakh and who receives income from salary, one house property / other sources (interest etc.).
Similarly, Sugam can be filed by individuals, Hindu Undivided Families (HUFs) and firms (other than Limited Liability Partnerships (LLPs)) having total income upto Rs. 50 lakh and income from business and profession computed under the presumptive taxation provisions.
Individuals and HUFs not having income from business or profession (and not eligible for filing Sahaj) can file ITR-2 while those having income from business or profession can file ITR Form 3.
Who cannot use ITR-1 (Sahaj)
(i) ITR-1 cannot be used for return filing if the tax has been deducted under Section 194N. Thus, a person is ineligible to file his return of income in ITR-1 for AY 2021-22 if tax is deducted under section 194N.
(ii) Further, ITR-1 cannot be used for return filing if the tax has been deferred in respect of ESOPs allotted by an eligible start-up under sub-section (2) of section 191 or sub-section (1C) of section 192.
Further, ITR-4 (Sugam) cannot be used for return filing if the tax has been deferred in respect of ESOPs allotted by an eligible start-up under sub-section (2) of section 191 or sub-section (1C) of section 192.
Persons other than individual, HUF and companies i.e. partnership firm, LLP etc. can file ITR Form 5. Companies can file ITR Form 6. Trusts, political parties, charitable institutions etc. claiming exempt income under the Act can file ITR-7.
There is no change in the manner of filing ITR Forms as compared to last year.
CBDT has amended Rule 12 of the Income Tax Rules,1962 to incorporate the changes related to ITR forms for the AY 2023-24.
Rule 12 of Income Tax Rules, 1962 prescribes the manner of filing the income tax return in ITR.
The following amendments or changes are notified for the ITR forms ITR-1 to ITR-6 for the AY 2023-24
1. In Rule 12(1), the year ‘2023’ is replaced for the figure ‘2022’ to make the changes applicable for AY 2023-24.
2. In Rule 12(5), the year ‘2022’ is replaced for the figure ‘2021’ to make the ITR forms as applicable for the AY 2022-23 or earlier assessment years which were notified for respective years.
3. This amended rule shall come into force with effect from the 1st day of April, 2023.
4. CBDT has not notified ITR-7 in this notification.
Update: CBDT has Notified ITR-7 in this Notification.
5. New ITR Forms SAHAJ ITR-1, ITR-2, ITR-3, SUGAM ITR-4, ITR-5, ITR-6, and ITR-V have been substituted for the AY 2023-24.
Though ITR forms for the AY are notified, no utility on the e-filing portal is yet given for the online filing of the return.
Update:
CBDT Amends ITR forms for AY 2023-24 vide Notification No. 8/2023 dated 28.02.2023 and Notification No. 11/2023 dated 03.03.2023
Read the full text of Notification No. 4/2023 dated 10.02.2023 on New ITR forms for AY 2023-24
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 10th February, 2023
G.S.R. 91(E).-In exercise of the powers conferred by section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. Short title and commencement.—(1) These rules may be called the Income-tax (First Amendment) Rules, 2023.
(2) They shall come into force with effect from the 1st day of April, 2023.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 12, –
(a) in sub-rule (1), in the opening portion, for the figure “2022”, the figure “2023” shall be substituted;
(b) in sub-rule (5), for the figure “2021”, the figure “2022” shall be substituted.
3. In the principal rules, in Appendix-II, for Forms ITR-1 SAHAJ, ITR-2, ITR-3, ITR-4 SUGAM, ITR-5, ITR-6, ITR-V and Indian Income Tax Return Acknowledgement, the following Forms shall, respectively, be substituted, namely:—
…..
…..
[Notification No. 04/2023/F.No. 370142/51/2022-TPL]
RAMAN CHOPRA, Jt. Secy.
Note : The principal rules were published vide notification S.O. 969 (E), dated the 26th March, 1962 and last amended vide notification GSR 769(E), dated the 7th October, 2022.
0 Comments