Usually, ITR filing forms for a particular financial year are notified by the end of March or early April. However, considering the amendments in the Income-Tax Act, 1961, the Central Board of Direct Taxes (CBDT) has notified Income-tax Return Forms (ITR Forms) for the Assessment Year 2023-24 vide Notifications No. 04 & 05 of 2023.
Let’s understand the latest notification of New ITR Filing Forms to be available for filing starting from 1 April.
Simplified ITR Filing for Taxpayers with Fewer Changes to ITR Forms This Year
- To facilitate taxpayers and ease ITR Filing process, the government has not made any major changes to ITR Forms as compared to previous year’s ITR Forms.
- The minimum changes have been made as per the amendments in the Income-Tax Act, 1961.
New Changes in ITR Filing Forms for AY 2023-24
The changes in ITR Filing forms have been announced in advance to make compliance easier.
You can understand about the new changes in ITR Filing forms here:
Reporting of Income from Virtual Assets(Cryptocurrency etc)
- The taxpayers will now have to report income from the virtual assets including cryptocurrency in the new section of ITR Form.
- You will need to submit the details such as date of acquisition, the date of transfer, and the head under which income will be taxed (capital gain) in the ITR Form.
- Furthermore, you will also need to detail the amount of tax paid while receiving cryptocurrency or virtual assets as a gift.
Option available for disclosing the turnover and intraday trading
- There is now an option available for disclosing the turnover and intraday trading earnings in trading accounts.
Introduction of new Questionnaire
- A new questionnaire has been introduced to determine whether the taxpayer has previously chosen the New Tax Regime under Section 115 BAC of the Income Tax Act.
Disclosure of Foreign Institutional Investors
- Taxpayers are required to disclose whether they are foreign institutional investors or foreign portfolio investors, along with the SEBI registration number of the Foreign Institutional Investors.
Disclosure of Capital Gains in Form ITR 5
- The Schedule CG (Capital Gains) in the new ITR 5 has been modified to incorporate the deduction allowed under Section 48(iii) concerning the capital gains.
Income from Dividends to be disclosed separately
- On the new ITR forms (e), there is a requirement to report the dividend income that falls under the purview of taxation as per Section 2 (22) separately.
Insertion of new feature to report tax-deferred on ESOP
- The new ITR forms now feature a “Schedule: Tax Deferred on ESOP,” which requires the taxpayer to disclose information related to the sale of certain securities, including the sale date and the amount of tax associated with those sales.
- Additionally, the form requests details such as the date of the taxpayer’s departure from the company, the amount of tax owed for the current assessment year, and the balance of tax deferral that can be carried forward to future assessment years.
Understanding Latest ITR Forms for AY 2023-24
- ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are designed to simplify the tax filing process for a large number of small and medium taxpayers.
- Sahaj is applicable to a resident individual with an income of up to Rs 50 lakh, who receives income from salary, one house property, other sources (such as interest), and agricultural income up to Rs 5,000.
- Sugam is meant for individuals, Hindu Undivided Families (HUFs), and firms (except Limited Liability Partnerships (LLPs)), who are residents with a total income of up to Rs 50 lakh and have income from business and profession.
- Taxpayers who don’t have income from business or profession and aren’t eligible to file Sahaj can file ITR-2, while those with income from business or profession can file ITR-3.
In conclusion, to enhance the efficiency of the ITR filing process, all ITR forms have been announced in advance this year, and no modifications have been made to the method of filing as compared to the previous year.
The Income Tax Department’s website, www.incometaxindia.gov.in, will host the notified ITR Forms for taxpayers to access.
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