Income tax department notifies new ITR forms for FY23

ITR Forms

The Indian income tax department has issued new ITR forms for the financial year 2022-23, which ask taxpayers for information on income from overseas retirement benefit accounts too. In a recent circular, the Central Board of Direct Taxes (CBDT) announced the new ITR forms from 1 to 6. The CBDT has left the ITR forms unchanged, so there will be no changes to the ITR filing forms or rules. The rules will take effect from April 1, 2022.

ITR Forms

ITR form 1 or SAHAJ: This is for salaried individuals who do not have any other sources of income, such as long-term capital gains, and have an annual income of less than 50 lakh rupees.

ITR form 2: This is for those who are salaried and earn money from sources other than their business. In other words, taxpayers who do not have business income can file the ITR 2 form.

Read Also: ITR: Why you must report tax-exempt income on your tax return?

ITR for 3: This form is for those who have business income along with any other income.

ITR form 4: This is for large business income group taxpayers who can use this form to provide a presumptive profit figure of their annual turnover in this form. ITR Form 4 can be filed by individuals, HUFs and firms 

ITR form 5: It is for taxpayers who receive income from a partnership firm.

Read Also: Income Tax Return: Who should file ITR compulsory?

ITR Form 6: ITR 6 of the ITR is for companies that are not registered under Section 11.

While the ITR-1 form was largely unchanged from last year, a new addition was the inclusion of income from a retirement benefit account held in a foreign country in the calculation of net salary.

It also wants to know if the retirement benefit account was kept in a notified country as required by section 89A of the Income Tax Act. Section 89A of the Income Tax Act allows taxpayers to claim tax relief on this income.

Read Also: 10 common mistakes to avoid while filing ITR

As April 1 marks the beginning of the new financial year, several rules related to the Income Tax are set to change from today. This year, many changes such as crypto tax, revised TDS and TCS rates, ITR filing rules have become applicable. Moreover, the Centre from today will ALSO relax provisions under Section 80DD that offers tax breaks for differently abled people.

Read Also: 10 new changes from April 1, you should know

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