The Finance Ministry has allowed persons against whom search and seizure action was taken by the Income Tax authorities to file revised income tax return in Form ITR-1 for Assessment Year (AY) 2023-24. However, there has been no significant change in the six income tax return forms for individuals, professionals and businesses notified by the Central Board of Direct Taxes (CBDT) on February 10.
This year, the CBDT has notified ITR Forms 1-6, as well as ITR-V (Verification Form) and ITR Acknowledgment Form in advance, a move that will give taxpayers enough time to prepare for relevant disclosures. The IT department earlier notified ITR forms for the relevant financial year by March or April.
Income tax return forms have been notified for the assessment year 2023-24 (for income earned in 2022-23).
As per the revised norms, persons who have been subjected to search and seizure action by tax authorities can now file revised return under section 153C based on self-assessment of their undisclosed assets in ITR-1.
CBDT has also made some changes in ITR-1 form with respect to disclosure under section 139(1), which is filed voluntarily by individuals having annual taxable income of less than Rs 2.5 lakh. These persons will not be required to report in their ITR form even if their fixed deposit amount exceeds Rs 1 crore.
Om Rajpurohit, director (corporate and international tax), AMRG & Associates, said the decision has been taken with the understanding that since the government already has all the necessary mechanisms in place, such as PAN, to track such large banking transactions, No additional purpose was being served by this. disclosure.
Deloitte India Partner Saraswathi Kasturirangan said a separate ‘Schedule – VDA’ has been added for reporting income from virtual digital assets like crypto currency.
Budget 2022-23 brought clarity regarding levy of income tax on crypto assets. From April 1, 2022, 30 per cent IT plus cess and surcharge was levied on such transactions.
One per cent TDS was also introduced per payment of virtual currencies exceeding Rs 10,000. The TDS limit was Rs 50,000 per year for specified persons, including individuals/HUFs who are required to get their accounts audited under the IT Act.
“The tax provisions for taxation of VDAs were introduced from FY 2022-23, so the addition of the new schedule is expected,” Kasturirangan said.
Manish Bawa, Executive Director, Nangia Andersen LLP, said the early notification of ITR forms would help taxpayers prepare for relevant disclosures that may be required in the forms in a timely manner. There are no significant changes except to make them contemporary.
ITR-1 and ITR-4 are simple forms that cater to a large number of small and medium taxpayers.
ITR-1 can be filed by a person having income up to Rs 50 lakh and having income from salary, one house property and other sources (interest etc.). ITR-4 can be filed by individuals, Hindu Undivided Families (HUFs) and firms having total income up to Rs 50 lakh and income from business and profession.
While ITR-2 is filed by people having income from residential property and income above Rs 50 lakh, ITR-3 is filed by professionals. ITR-5 and ITR-6 are filed by LLPs and businesses.
Rajat Mohan, senior partner, AMRG & Associates, said the CBDT has notified income tax return forms for AY 2023-24 (for income earned in 2022-23) well in advance, allowing taxpayers to file their forms earlier this year. Will help you prepare your income return. Last year such forms were notified in the first week of April.
“Early notification of ITR forms will give sufficient time to all stakeholders including e-filing portals, third party software companies, taxpayers and tax professionals. This year, software vendors can utilize this additional time for early implementation of Excel utility and third party software for ITR filing.”
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