• Notification Date: 28-04-2023
• Notification No: N/A

Income Tax Dept Releases ITR 1, ITR 4 Offline Forms

The Income Tax department has released the offline ITR-1 and ITR-4 forms for filing the income tax return (ITR) for AY 2023-24, i.e., the financial year 2022-23. ITR-1 can be filed by an individual having income up to Rs 50 lakh, while ITR-4 forms can be filed by individuals, Hindu Undivided Families (HUFs), and firms earning from businesses. 

In February this year, the Income Tax Department issued the ITR forms for individuals, Hindu Undivided Families, businesses, and others for 2022-23 fiscal. 

The Central Board of Direct Taxes (CBDT) issued a notification on February 10 that ITR forms 1-6, ITR-V (verification form), and ITR acknowledgment form have been issued for the FY2022-23. Last year, such forms were notified in the first week of April.  The I-T department is to release the other income tax return forms. 

“Excel utilities of ITR 1 and ITR 4 for AY 2023-24 are available for filing,” the e-filing income tax portal notified. The tax department is yet to release the JSON utility for ITR-1 and ITR-4. 

The Excel utilities are defined tools that taxpayers can use to enter their income and other details required for filing their income tax returns. 

Get the Offline ITR Forms 

With the release of the offline ITR forms 1 and 4, taxpayers can download these forms from the Income Tax Department's website, take a printout, fill them manually, and submit it offline. 

One can also submit these forms online by filling in the income and deduction-related details and uploading it on the income tax e-filing portal. 

Though the offline forms have been released by the I-T department, most salaried individuals need Form 16 from their employers to fill in their returns. The due date to issue Form 16 by an employer is June 15.  

April 1, 2023, marks the start of the new financial year 2023-24. Taxpayers must file their income tax returns by July 31 for the financial year 2022-23. 

There are seven types of ITR forms, ranging from ITR 1 (Sahaj), ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7, for different individuals, businesses, and companies.  

It is very important to choose the correct ITR form while filing their tax return. If the wrong ITR form is used for filing the I-T return, then the filing will be a defective return, and the tax department will send a notice to refill the return. 

ITR form should be selected on the sources of income during a particular financial year. ITR-1 and ITR-4 are simpler forms that cater to many small and medium taxpayers. 

Old and New Income Tax Regimes 

Finance Minister Nirmala Sitharaman during her Budget speech said that from April 1, 2023, the new income tax regime will act as the default tax regime. Taxpayers will be given a choice to choose their regime, in case they don’t, the income tax will be calculated as per the new tax regime. 

The new tax regime, which was introduced in the 2020 Budget, is known as the 'Simplified Tax regime,' and offers reduced tax rates if the taxpayer is ready to forego some deductions and exemptions during I-T calculations. 

There are several changes to the new regime, which have been done such as increased rebate has been allowed on income up to Rs 7 lakh along with marginal relief available in the new tax regime. 

There are six income slabs now in the new regime with the increased basic exemption limit to Rs 3 lakh from the previous limit of Rs 2.5 lakh. 

In addition, the maximum rate of surcharge is 25 per cent in the new tax regime, whereas the maximum surcharge rate under the old regime was 37 per cent. 

The taxpayers under the new regime have to forgo exemptions if they opt for new tax regime such as Leave Travel Allowance, House Rent Allowance, Children Education Allowance, Deduction for professional tax, Interest on housing loans, and deductions on specified investments, etc. 

Old Tax Regime 

The old regime is the tax system that prevailed before the introduction of the new regime. Under this regime, there are over 70 exemptions and deductions available, including HRA and LTA that can reduce your taxable income and lower tax payments. The most popular and generous deduction is Section 80C, which allows for a reduction of taxable income up to Rs 1.5 lakh.