Income tax Cancelled common ITR forms: Big News! Income tax department canceled common ITR forms, Issued separate forms for FY2023

0
170

The Income Tax Department had presented a proposal on November 1, 2022. In this he said that there will be a common ITR form for all other ITR forms except ITR 7. ITR 7 is for trust. This was done to simplify income tax return filing and reduce the time taken in ITR filing for individual and non-business taxpayers.

- Advertisement -

Forms notified in November

CBDT has now notified the Income Tax Return Forms (ITR Form) for the Financial Year 2022-23 (Assessment Year 2023-24) through Notification No. 04 and 05. These have been issued on 10.02.2023 and 14.02.2023 respectively. These ITR forms will become effective from April 1, 2023.

Income Tax Department told this reason

The Income Tax Department has issued a press release on 15 February. It states that these forms have been issued earlier so that taxpayers can file income tax returns from the beginning of the assessment year 2023-24 (April 1, 2023). It also said that minor changes have been made in these and no changes have been made in the filing of ITR forms this year.

The rules applicable to these ITR forms are as follows:

form Terms of Use
ITR 1 Individuals who are residents (other than ordinarily resident) with total income up to Rs.50 lakh, income from salary, one house property, other sources (interest etc.), and agricultural income up to Rs.5000 (not for individuals who are Is a director in a company or has invested in unlisted equity shares or in cases where TDDS has been deducted under section 194N or if income tax is deferred on ESOPs)
ITR 2 For Individuals and HUFs who do not have income from profits or gains from business or profession
ITR 3  For Individuals and HUFs having income from profits or gains from business or profession
ITR 4  For Individuals, HUFs and Firms (other than LLPs) who are residents having total income up to Rs.50 lakhs and having income from business and profession computed under section 44AD, 44ADA (Not for individuals who are employed in a company) director or who has invested in unlisted equity shares or income-tax deferred ESOPs)
ITR 5   Other than (I) Individual, (II) HUF, (III) Company and (IV) Person who filed Form ITR-7 for other persons. This form will be applicable to Partnership Firms, LLP etc.
ITR 6  For companies other than those claiming exemption under section 11.
ITR 7 ITR Form 7 can be filed by trusts, political parties, charitable institutions, etc. claiming exempt income under the Income Tax Act.

 

keep these things in mind

However, the filing of Income Tax Return will commence only when the Income Tax Department makes available online utilities for filing returns. Taxpayers are also advised to match their returns with Form 26AS and Annual Information Statement (AIS) which are available on the Income Tax Portal after login through taxpayer’s PAN. Such taxpayers in whose case income tax has been deducted (TDS) or collected (TCS) on behalf of any person, information about such tax payment is available in Form 26AS.

But this information will be available only when the person collecting TDS/TCS files his TDS and TCS returns. The last date for filing TDS return for the quarter ending March 31, 2023 is May 31, 2023 and for TCS return May 15, It’s 2023. Certain other authorities/persons like Registrar of Properties or Credit Card Company etc. are required to file Statement of Financial Transactions (STF) for certain financial transactions to be captured in Form 26AS and AIS. If a person files his income tax return earlier and there is any new information in Form 26AS or AIS, then the taxpayer can get a notice from the Income Tax Department.

Last date for ITR filing will not extend

The good thing is that since these forms have now been notified and there have been no major changes, taxpayers can start collecting information and file returns within the deadline. July 31 is the last date for filing income tax returns for individuals, HUFs and partnership firms that are not required to get themselves audited. This also indicates that taxpayers should not expect the last date to be extended this year as the Income Tax Department has notified the forms much in advance.

- Advertisement -