Income tax Department of India has notified new ITR Forms for the financial year 2022-23, which also seeks statement of income from overseas retirement benefit accounts taxpayers, Like last year, ITR1 can be filed by individuals with total income up to Rs 50 lakh. Sources of such income may include: salary, income from a house property, and other sources such as interest income, dividends, etc., and agricultural income up to Rs.5,000. ITR Form 1-5 has been notified by the Central Board of Direct Taxes (CBDT). 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 a person having income up to Rs 50 lakh and who draws income from salary, a house property and other sources (interest, etc.).
ITR-4 can be filed by individuals, HUFs and firms with total income up to Rs 50 lakh and income from business and profession.
ITR-3 is filed by individuals whose income is in the form of profit from any business/profession, whereas ITR-5 is filed by Limited Liability Partnership (LLP), a corporate body.
While the ITR-1 form has been largely kept the same as last year, the new addition to the form was to include income from retirement benefits account maintained in a foreign country for computing net salary.
ITR-6 is for companies other than those claiming exemption under section 11 of the Income Tax Act. ITR-7 is yet to be notified by the government.
Other income tax changes from April 1
Also, April 1 marks the beginning of a new financial year, and means that many rules on the finance front are usually changed during this period. This year, several changes related to income tax have come into effect including crypto tax, revised TDS and TCS rates, ITR filing rules and more.
During Budget 2022, the government has announced that a higher TDS and TCS will be applicable from the next financial year if taxpayers do not file income tax returns for the previous year. It should also be noted that this rule will not be effective if the source of income is salary, provident fund – but it will be effective if the income is interest income, dividend income under the provisions of the Income Tax Act.
Another announcement was made during Budget 2022 that senior citizens above the age of 75 will no longer be required to file their income tax returns from April 1. This was one of the big income tax rules announced in this year’s budget. , However, this is subject to certain conditions.
Additionally, from today, the government will relax provisions under section 80DD that provides tax exemption for people with disabilities. Under this, if a person buys a life insurance policy for a disabled person, they can claim a deduction under section 80DD, even if the policy benefit is in effect while the person is alive.
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