• Notification Date: 11-11-2022
• Notification No: N/A

Narendra Modi proposes New ITR Form

The BJP Government proposes a new Income Tax Return (ITR) filing form for the taxpayers. The CBDT has released the draft of this new form which combines ITR-1 to ITR-6. The current ITR 1 and ITR 4 which are made available in the new form. The newly released form leaves out ITR 7 as a separate form.

According to the reports, the new ITR form will be available for tax filing from Financial Year (FY) 2022-2023 onwards. The new form will make it mandatory for the taxpayers to follow the schedules, whether applicable or not. This will make the tax filing process a bit lengthier and more time-taking. The taxpayers will have to answer a few questions while filing their taxes. The answers will be in the format of “Yes” or “No”. Based on the replies of the taxpayers, the applicable schedules will open for them.

The listed schedules available for the taxpayers are – the Basic Information which comprises part A to E, Schedule for total income (Schedule TI), Schedule for computation of tax (Schedule TTI), Details of the bank accounts of the taxpayers, and a schedule for tax payments (Schedule TXP) will be available for the taxpayers.     

There a few changes that are notable for the salaried individuals. The changes which are affecting the salaried taxpayers are listed below-

1.  The taxpayers will be required to specify whether they are claiming any kind of benefits under the tax treaty of India signed with other countries.

2.  In the new ITR form, a new disclosure requirement has been included with respect to investment in firms or unincorporated entities.

3.  The taxpayers will have to disclose their received and taxable income of the previous year in the Schedule salary, under the Retirement Benefit Accounts. The detail of such income must be mentioned on which relief has been claimed by the taxpayer in the previous year(s) under Section 89 of the Income Tax, 1961.

4.  Under the Schedule House Property, in case a taxpayers has taken a housing loan and is claiming deduction in the payable interest, the individual has to provide the details of the lender and the remaining loan amount as per the last day of the financial year. 

5.  In Schedule Capital gains, the ISIN Code of share that has been sold is required to be reported for short term capital gains under Section 111A of the Act. In case the capital asset has been transferred before 1 April 2001 or it has been acquired from a previous owner, the individual must make specific declarations.

 6.  Under Schedule assets and liabilities section, the taxpayers have to mention the interest held by them in the assets of a firm or AOP as a partner or member has been re-introduced.