• Notification Date: 16-02-2023
• Notification No: N/A

New Income Tax Return Forms and Recent Changes

The Central Board of Direct Taxes (CBDT) had earlier released the income tax return forms for the assessment year (AY) 2023-24. In the past, the Centre would notify the ITR forms either at the end of the financial year or at the start of the new financial year for the relevant financial year. The early notification of ITR forms for the current AY gives all stakeholders ample time to prepare. Notably, the income tax department typically notified ITR forms for the relevant financial year by March or April. 

For individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest etc.), and agricultural income up to Rs.5 thousand.  

Form No. ITR-2 

For Individuals and HUFs not having income from profits and gains of business or profession 

Form No. ITR-3  

For individuals and HUFs having income from profits and gains of business or profession  

Form No. ITR-4  

Sugam For Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE.  

Form No. ITR-5  

For persons other than- (i) individual, (ii) HUF, (iii) company and (iv) person filing.  

Form ITR-7 and Form ITR-6  

For Companies other than companies claiming exemption under section 11. 

It should be noted by taxpayers that there have not been any significant changes in the ITR forms. Taxpayers will be pleased to know that there are no changes in ITR-1. In the other remaining forms, a new schedule has been added under the head of Capital Gains, for reporting Income from Virtual Digital Assets. This new schedule requires taxpayers to report the date of acquisition, date of transfer as well as cost of acquisition and the proceeds received on sale of VDAs. Income from VDA must be reported quarterly. The ITR forms have also been updated to include more questions about the selection of the new tax regime. Taxpayers must now report if they opted for the new regime in the previous assessment year, and the assessment year in which they made the selection. Another question has been added, requiring taxpayers to report if they have opted out of the new regime in any of the previous years and provide the 10IE details for both selections.