The Ministry of Finance has allowed individuals against whom searches and seizures have been carried out by the IT authorities to file revised income tax returns in ITR-1 form for assessment year (AY) 2023-24. However, there are no substantial changes to the six income tax return forms for individuals, professionals and companies reported on February 10 by the Central Council for Direct Taxes (CBDT).
This year, CBDT has pre-registered ITR Forms 1-6, as well as ITR-V (Verification Form) and ITR Acknowledgment Form, a move that gives taxpayers plenty of time to prepare for relevant disclosures. Previously, the IT department submitted ITR forms for the relevant fiscal year in March or April.
Income tax return forms have been submitted for assessment year 2023-24 (for income earned in 2022-23).
Under the amended standards, individuals subject to searches and seizures by tax officials can now file a revised return under Section 153C based on a self-assessment of their secret assets in ITR-1.
CBDT has also made certain changes to the ITR-1 form regarding disclosure under section 139(1), which is voluntarily filed by persons with an annual taxable income of less than Rs 2.5 lakh. These individuals are not required to fill their ITR forms even if their fixed deposits exceed Rs 1 crore.
AMRG & Associates Director (Corporate & International Tax) Om Rajpurohit said that this decision was made with the understanding that as the government already has all the necessary mechanisms in place, such as PAN, to monitor such large banking transactions, it did not achieve any additional purpose. revelation.
Saraswathi Kasturirangan, partner of Deloitte India, said that a separate ‘Schedule – VDA’ has been added to report income from virtual digital assets such as cryptocurrency.
The 2022-23 Budget brought clarity regarding the levying of income tax on crypto assets. From 1 April 2022, 30 percent ICT plus assignment and surcharges were levied on such transactions.
A one percent TDS was also introduced for payments over Rs 10,000 in virtual currencies. The threshold limit for TDS was Rs 50,000 per annum for certain persons including persons/HUFs who are required to have their accounts audited under the IT Act.
“Tax provisions for taxation of VDAs have been introduced from fiscal year 2022-23, so the addition of a new schedule is in line with expectations,” said Kasturirangan.
Nangia Andersen LLP, Executive Director, Maneesh Bawa said early notification of ITR forms will help taxpayers prepare for relevant disclosures that may need to be made in the forms in a timely manner. There are no substantial changes other than making them concurrently.
ITR-1 and ITR-4 are simpler forms suitable for a wide range of small and medium-sized taxpayers.
ITR-1 can be filed by a person who has an income of up to Rs 50 lakh and who receives income from salary, a home ownership and other sources (interest, etc.). ITR-4 can be filed by individuals, Hindu Undivided Families (HUFs) and companies with total income up to Rs 50 lakh and income from business and profession.
While ITR-2 is filed by people with housing income and income above Rs 50 lakh, ITR-3 is filed by professionals. ITR-5 and ITR-6 are submitted by LLPs and companies.
AMRG & Associates Senior Partner Rajat Mohan said CBDT has filed income tax return forms for assessment year 2023-24 (for income earned in 2022-23) quite early, which should help taxpayers prepare their income returns early this year. Last year, such forms were submitted in the first week of April.
“Early notification of ITR forms would allow sufficient time for all stakeholders, including the e-filing portal, third-party software companies, taxpayers and tax professionals. This year, software vendors can use this extra time for early implementation of Excel tools and third-party software for filing ITRs,” added Mohan.
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(This story has not been edited by News18 staff and was published from a syndicated news agency feed)
