The Central Board of Direct Taxes (CBDT) has recently released the tax forms of fiscal year 2022-23. The release of forms in the month of February is seen as a positive move, for taxpayers can file their tax returns well in time. Earlier, these forms used to be notified in the month of March or April.
However, the last date to file tax return for AY 2023-24 is July 31, 2023.
"The early release of AY2023-24 Income Tax Forms gives the taxpayers time to file their taxes well in advance. To ensure further ease of doing compliance, the CBDT has said that only changes to incorporate Income Tax Act amendments have been made in the forms vis-a-vis last year," said CA Kanan Bahl, a financial educator and growth consultant.
The forms have a separate schedule for income arising out of cryptocurrencies.
Besides, a new questionnaire has been added in the ITR-3 and ITR-4 to determine whether the taxpayer opted out of the new tax regime in previous years. However, as far as salaried tax payers are concerned, there is no noticeable change in the forms, says Chirag Chauhan, a Mumbai-based Chartered Accountant.
Let us find out more on what more changes have been introduced in these income tax (I-T) forms.
These are the points one should keep in mind in relation to the new tax forms:
1. Tax on virtual digital assets (VDA): Now, there is a schedule for cryptocurrencies (virtual digital assets). So, if you have earned any income from cryptocurrencies (virtual digital assets) in fiscal year 2022-23, then you are supposed to report the same in a separate schedule given in the tax form.
As one can recall, tax provisions for taxation of virtual digital assets was introduced from 2022-23, and hence the taxation has followed.
There is a separate schedule for virtual digital assets that requires details like date of acquisition, date of transfer head under which income to be taxed (capital gain), cost of acquisition.
2. Old versus new tax regime: There is a new questionnaire in ITR-3 and ITR-4 that has been added to determine if the taxpayer has opted out of the new tax regime in previous years.
3. For salaried individuals: Besides this, there is no noticeable change for individual or salaried taxpayers.
4. Common tax form: Another thing worth noting is that the tax department has yet not made the expected announcement of a common ITR form proposed in the Union Budget 2023.-24.
5. Disclosure relating to intraday trading: Now the income tax (I-T) form gives an option to disclose turnover and income from intra-day trading in trading accounts.
Different ITR forms:
ITR-1 is filed by an individual having income up to ₹50 lakh and who receives income from salary, one house property and other sources e.g., interest.
The ITR-2 is filed by taxpayers who have income from residential property, while the ITR-3 is filed by professionals.
The ITR-4 can be filed by individuals, Hindu Undivided Families (HUFs) and firms with total income up to ₹50 lakh and having income from business and profession.
The ITR-5 and ITR-6 are filed by LLPs and businesses.