The finance ministry has allowed individuals against whom search and seizure operations were carried out by the I-T authorities to file revised income tax return in ITR-1 form for assessment year(AY) 2023-24. However, there are no substantial changes in the six income tax return forms catering to individuals, professionals and businesses, notified by the Central Board of Direct Taxes (CBDT) on February 10.
This year, CBDT has notified ITR forms 1-6, as well ITR-V (verification form) and ITR acknowledgement form in advance, a move that will give taxpayers enough time to prepare for relevant disclosures. The I-T department earlier used to notify ITR forms for the relevant financial year either by March or April.
Income tax return forms have been notified for Assessment Year 2023-24 (for income earned in 2022-23).
As per the modified norms, individuals on whom search and seizure operations have been carried out by tax officials can now file revised return under section 153 C on the basis of self-assessment of their undisclosed wealth in ITR-1.
CBDT has also made certain changes in ITR-1 form with regard to disclosure under Section 139 (1), which is filed voluntarily by persons having annual taxable income of less than Rs 2.5 lakh. These individuals will not be required to intimate in their ITR forms even if their fixed deposits exceeds Rs 1 crore.
AMRG & Associates Director (Corporate & International Tax) Om Rajpurohit said this decision has been made with the understanding that since the government already has all the necessary mechanism, like PAN, to track such large banking transactions, no additional purpose was being achieved by this disclosure.
Deloitte India Partner Saraswathi Kasturirangan said a separate ‘Schedule – VDA’ has been added to report income from virtual digital asset such as crypto currency.
The 2022-23 Budget brought in clarity with regard to levy of income tax on crypto assets. From April 1, 2022, a 30 per cent I-T plus cess and surcharges, was levied on such transactions.
A one per cent TDS on payments over Rs 10,000 towards virtual currencies was also introduced. The threshold limit for TDS was Rs 50,000 a year for specified persons, which include individuals/HUFs who are required to get their accounts audited under the I-T Act.
“Tax provisions for taxation of VDAs was introduced from FY 2022-23 hence the addition of new schedule is in line with the expectation,” Kasturirangan said.
Nangia Andersen LLP, Executive Director, Maneesh Bawa said early notification of ITR forms will help taxpayers prepare for relevant disclosures that may be required in the forms in a timely fashion. There are no substantial changes, other than those to make them contemporaneous.
ITR-1 and ITR-4 are simpler forms that cater to a large number of small and medium taxpayers.
ITR-1 can be filed by an individual having income up to Rs 50 lakh and who receives income from salary, one house property and other sources (interest, etc). ITR-4 can be filed by individuals, Hindu Undivided Families (HUFs) and firms with total income up to Rs 50 lakh and having income from business and profession.
While ITR-2 is filed by people having income from residential property and having income above Rs 50 lakh, ITR-3 is filed by professionals. ITR-5 and ITR-6 are filed by LLPs and businesses.
AMRG & Associates Senior Partner Rajat Mohan said CBDT has notified the income tax return forms for Assessment Year 2023-24 (for income earned in 2022-23) quite early, which would help taxpayers prepare their income returns early this year. Last year, such forms were notified in the first week of April.
“Early notification of ITR forms would give ample time to all the stakeholders, including the e-filing portal, third-party software companies, taxpayers, and tax professionals. This year, software vendors can use this extra time for an early implementation of excel utility and third-party software for filing ITRs,” Mohan added.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
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