Taxpayers are now gradually filing income tax. So that the last minute rush can be avoided. If you are also going to file ITR, then before that know which form is right for you among ITR-1, ITR-2, ITR-3 and ITR-4. Along with this, what are ITR-1, ITR-2, ITR-3 and ITR-4 and what are their uses?

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 ITR Rules for Freelancers: Usually, income tax stories talk about salaried people. We ignore freelancers. Today we will know how freelancers can file ITR. Along with this, if they file ITR under the old tax regime, then under which section can they claim tax deduction. Also, what is the tax slab for freelancers?

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The Income Tax Department has released all forms from ITR-1 to ITR-7 for the financial year 2024-25 (Assessment Year 2025-26). It is important to understand which category you fall into, so that you can choose the right ITR form according to your income source and entity type. This greatly reduces the chances of your return being rejected.

Let us understand which ITR form is suitable for taxpayers in India:

1. Individual

Who: Individual taxpayers such as salaried employees, freelancers or other professionals.

Taxation: Tax is levied as per the income slab. There are different tax rates for normal citizens, senior citizens (60–80 years) and super senior citizens (above 80 years).

ITR Forms:

ITR-1 (Sahaj): For salaried employees with income up to Rs 50 lakh.

ITR-2: For capital gains or those with more than one property.

ITR-3: For those with income from business/profession.

ITR-4 (Sugam): For those with presumptive income under section 44AD, 44ADA or 44AE.

2. Hindu Undivided Family (HUF)

Who: A family with common ancestors, treated as a separate entity.

Taxation: Same rates as for individual taxpayers, plus certain exemptions.

ITR Form:

ITR-2, ITR-3 or ITR-4 (depending on the source of income).

3. Company

Who: Private or public limited companies registered under the Companies Act.

Taxation: Flat corporate tax rates apply. Minimum Alternate Tax (MAT) is also applicable in certain cases.

ITR Form:
ITR-6 (not for companies claiming exemption under section 11).

4. Firm

Who: Partnership firms, including Limited Liability Partnerships (LLPs).

Taxation: Flat tax rate of 30% on total income plus surcharge and cess is applicable.

ITR Form: ITR-5

5. Association of Persons (AOP) / Body of Individuals (BOI)

Who: Groups of people or bodies that come together for a common purpose.

Taxation: Depending on specific situations, either the individual tax rate or the maximum marginal rate is applicable.

ITR Form: ITR-5

6. Local Authority

Who: Municipalities, panchayats and other local bodies.

Taxation: Income from commercial activities is taxable. Certain sources of income are exempt.

ITR Form: ITR-5

7. Artificial Juridical Person (AJP)

Who: Entities that do not fall into any of the above categories – such as trusts, societies and others.

Taxation: Tax rate is determined based on income and entity type.

ITR Forms:

ITR-5: For general AJPs.

ITR-7: For entities claiming exemptions under sections 11, 12 etc. – such as charitable trusts.

It is very important to choose the right ITR form as per the income source and entity type. This not only makes it easier to comply with tax rules, but also reduces the chances of the return being rejected due to any mistake.

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The Income Tax Department has notified ITR-1, ITR-3, ITR-4 and ITR-5 forms for Assessment Year 2025-26 (FY 2024-25). In such a situation, the Income Tax Return (ITR) filing process is expected to start soon. The most important thing for taxpayers is to choose the correct ITR form, because filling the wrong form may result in rejection of the return or even a penalty may be imposed.

What is ITR form?

Income Tax Return (ITR) form is the medium through which taxpayers give information about their annual income, deductions and tax payment to the Income Tax Department. There is a different ITR form for every type of income. Let us know which ITR form is for what:

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If for any reason taxpayers are facing difficulty in filing returns, then they should use the consultancy services of a CA or tax expert. The reason for this is that taxpayers have to face problems after their income tax returns are rejected. Let us know what mistakes taxpayers should generally avoid.

1. Wrong information in the form

Taxpayers should not give any wrong information in the income tax form. They should not claim any deduction which they are not entitled to. Before submitting the form, every information should be checked once or twice. Many times, due to calculation mistakes, wrong information is entered in the form, due to which the form gets rejected. It is also important for taxpayers to pay attention to using the correct form to file the return.

2. Difference in data of Form 16 and AIS

The Income Tax Department has many ways to keep an eye on every financial of the taxpayers. Annual Information Statement (AIS) is the most important among them. Similarly, the most important document for salaried taxpayers is Form-16. Before filing income tax return, it is important to understand the information given in Form 16 and AIS properly. This will reduce the chances of wrong information going into ITR. Taxpayers are advised to match the data of Form 16 and AIS.

Also Read: Aadhaar Card Rules: Aadhaar Card Enrollment ID can no longer be used for these purposes

3. Not submitting the form by the deadline

It is necessary to submit the ITR form before the last date of filing ITR. Usually, taxpayers fill the ITR form in advance but they do not submit it. If the form is not submitted on time due to some reason, their return may get rejected. After the form is rejected, the return will have to be filed again with a penalty.

4. Mistake in tax calculation

There is a possibility of ITR being rejected even if there is a mistake in the calculation of tax liability. Therefore, before filing the return, taxpayers should calculate their tax liability correctly. They should calculate the deduction, exemption and tax rate correctly. If any kind of problem is faced, then advice of a tax expert can be taken.

5. Not verifying the form

After submitting the income tax return, it is necessary to verify it. There are many ways to verify it. It can be verified through OTP from Aadhaar. It can be verified using netbanking. ITR-V form can be signed and sent to the Central Processing Center in Bangalore. If you file ITR and forget to verify it, then your return will be considered invalid. There is a deadline to verify ITR.

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If you are now preparing to file your income tax return for the financial year ending 2022-23. So you will have to pay attention to some rules because this year the Income Tax Department has made some important changes in the ITR form. Which taxpayers should know before starting the ITR file. Here are the major changes introduced in the latest ITR form.

If you have earned any income from cryptocurrency during FY 2022-23, you must mention necessary details such as date of acquisition, date of transfer, cost of acquisition and sale income etc. in your return to avoid any hassle while filing your return. Keep close. Taxpayers should check their Form 26AS and AIS to ensure that the income from VDA, in respect of which tax has been deducted under the newly introduced section 194S, has been included in the return of income.

It is necessary to give donation reference number

If you have made any donation during the financial year 2022-23, now only having the donation receipt under section 80G may not be sufficient to claim the deduction. The ITR form now makes it mandatory for taxpayers to mention the Donation Reference Number (referred to as ARN in the ITR form).

Where donations are made to institutions, a deduction of 50% is allowed subject to qualifying limits. ARN is a unique reference number and is available on the Form 10BE/receipt issued by the receiving institution. Therefore, if your donation is eligible for the above deduction, you must ensure that your Form 10BE/Donation Receipt reflects the ARN accurately.

Taxpayers will have to give this information

With effect from 1 April 2021, individuals who are resident in India have the option of deferring tax in respect of income earned on Foreign Retirement Benefit Account. However, if the taxpayer subsequently becomes an NRI, the income on which relief under section 89A was claimed in previous years will be taxable in the hands of the taxpayer.

Earlier it was necessary to disclose the income in the ITR form in the year of withdrawal from the Retirement Benefit Account. The ITR form for FY 22-23 is now also required to disclose the income on which relief under section 89A was claimed in previous years and which has become taxable during the year.

These important changes happened

Certain other changes have also been introduced in ITR forms for AY 2023-24 such as additional disclosures relating to advances in the balance sheet in ITR-3, and requirement to disclose SEBI registered number where the taxpayer is a Foreign Institutional (FII). OR Foreign Portfolio Investor (FPI) is an investor registered with SEBI.

How to file ITR online

1. Tax payers can file their ITR on the online portal of the Income Tax Department at incometax.gov.in .
2. As the first step in the ITR filing process, it is necessary to determine which ITR form is applicable to you. It is mainly based on your income source for the respective financial year.
3. If you are a new taxpayer, there is no reason to worry as necessary guidance is available on the Income Tax Portal itself to enable taxpayers to choose the appropriate ITR form.
4. After selecting the appropriate ITR form, you can file your return either by filling the applicable ITR form online on the e-filing portal or use the Excel/Java utilities issued by the department to fill the ITR form offline and then proceed to upload the same online on the portal.
5. The Income Tax Department has enabled pre-filling of the data already available with the tax authorities. This feature not only auto-populates the general information fields in the ITR form, but also pre-populates details of income on which tax has been deducted at source, dividend income, interest from bank account, etc. This option will reduce data entry and help you prepare your tax return easily.

Please re-verify the pre-filled information with your records as there could be a mismatch between the actual taxable amount and the amount shown in the pre-filled ITR. Taxpayers should also check the details appearing in Annual Information Details (AIS), Form 26AS and Taxpayer Information Summary (TIS) available on the IT portal.

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The new financial year has started from 1st April. Along with this, the process of filing Income Tax Return (ITR) for the financial year 2022-23 is also going on. For this, the last date of 31 July 2023 has been fixed by the CBDT. Under this, people with taxable income have to file income tax return. Now you can pay income tax or file ITR under Old Tax Regime and New Tax Regime. The tax slabs are different in both the tax regimes.

Total seven types of ITR forms

If tax liability arises on you, then you will have to file Income Tax Return (ITR) for the financial year 2022-23 by 31 July. ITR forms were issued by the Central Board of Direct Taxes (CBDT) in February. Form-16 has also been issued by the companies for the employed people. After this, the number of ITR filers is sure to increase. As July 31 approaches, the traffic on the Income Tax website increases. That’s why it is important that you keep filing ITR on time. Let us tell you that there are seven types of ITR forms for individual income tax payers, businesses and companies.

When will the penalty be imposed?

Different ITR forms are filed according to the need. ITR-1 and ITR-4 are filed by a large number of small and medium taxpayers. However, if the people paying income tax do not take care of the deadline, then they may have to pay a fine of Rs 5,000.

Actually, this year the last date for filing ITR is 31 July. In such a situation, if someone is not able to file ITR till 31st July, then he has time till 31st December. You can file ITR with late return file till 31st December. In this you will have to pay a penalty of Rs 5,000.

According to the information given on the website of the Income Tax Department, after July 31, 2023, those filing ITR will have to pay a fine of Rs 5,000. Even after this, if an ITR is not filed by the due date, then the amount for filing after that can be doubled.

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Those who are not, those people can also fill the ITR form. It is very useful in taking loan. The Income Tax Return Form (ITR Form) to be filled for this year has been released by the Income Tax Department recently. These forms have become effective from April 1, 2023.

Let us tell you that there are 7 types of ITR forms in the country. Their numbers range from ITR-1 to ITR-7. These forms have been prepared according to people with different income and sources of income. Apart from these, there is also Zero ITR form. For AY 2023-24 (Assessment year 2023-24), if a person’s annual income is above Rs 2.5 lakh according to the old tax slab or above Rs 3.5 lakh according to the new tax slab, then he must file ITR. In such a situation, Zero ITR can also be filled.

How many types of ITR forms

Let us tell you that there are mainly seven types of ITR forms. It includes ITIR-1 (ITR-1), ITIR-2 (ITR-2), ITIR-3 (ITR-3), ITIR-4 (ITR-4), ITIR-5 (ITR-5), ITIR-6 ( ITR-6) and Itir-7 (ITR-7).

ITR-1 can be filed by a resident individual who:

• Total income during the financial year does not exceed ₹ 50 lakh
• Income from salary, one house property, family pension income, agricultural income (up to ₹5000/-) and other sources, which includes:
• interest from savings accounts
• Interest on Deposits (Bank/Post Office/Cooperative Society)
• Interest from income tax refund
• Interest received on enhanced compensation
• any other interest income
• family pension
• The income of the spouse (except those covered under the Portuguese Civil Code) or the income of the minor is added (only if the source of income is within the specified limits mentioned above).

ITR 2 (ITR-2): Who is eligible to file ITR-2 for the assessment year 2021- 22?

• ITR-2 can be filed by any individual or HUF:
• Not eligible to file ITR-1 (Sahaj)
• Such persons who are not deriving profits and gains from the business or profession and are not deriving the following types of income from the profits and gains of business or profession:
• interest
• Salary
• Bonus
• Commission or remuneration, by whatever name called, received from a partnership firm
• If the income of any other person such as spouse, minor child, etc. is to be clubbed with his income – if such income falls in any of the above categories.

ITR 3 (ITR-3) : Let us tell you that this form is chosen by individual taxpayers and HUFs who earn income from owning a profession or a business. Taxpayers who have income from investment in unlisted shares, are partners in a company, are directors of a company or have a business turnover of more than Rs 2 crore, file this form.

ITR 4 (ITR-4): Individuals, HUFs and partnership firms who are residents of India, earning income from any business or profession (doctor, lawyer etc.); They have to select ITR-4. It is also called SUGAM Form. Explain that there is no limit on the income earned in this.

ITR 5 (ITR-5) : Let us tell you that this ITR-5 form is for institutions. Entities that are registered as Firms, LLPs, AOPs, BOIs have to fill ITR-5 form.

ITR 6 (ITR-6) : ITR 6 is for any company which is not claiming exemption under section 11 of the Income Tax Act, 1961. Firms filing income tax return under this section can file it electronically only.

ITR 7 (ITR-7): ITR 7 form is filed by political party, hospital, medical institution, university, fund, news agencies, scholarly research association and other educational institution, college or university or commercial trust.

What does Zero ITR mean?

Another special thing is that only those people who come under the ambit of income tax do not have to file income tax return. Apart from the normal ITR, zero ITR form would have been a kind of ITR return, which is called Nil Income Tax Return filing. If a person is outside the tax slab issued by the Income Tax Department and still fills the tax return form, then it is considered as zero ITR filing. 

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Till now these forms were only available offline. However, now the Income Tax Department has given information about their availability online through a tweet. To make it easier for the taxpayers to fill the form, a lot of information related to them will be pre-filled in the form.

Most of the people who file income tax returns are salaried people or individual taxpayers. The last date for filing ITR without penalty for these people is 31 July 2023. Those filling the form after July 31 may have to pay a fine.

Last date for filing ITR for different categories of taxpayers-

1. For individual taxpayers, Hindu Undivided Family (HUF), Association of Persons (AOP) or Body of Individuals (BOI) whose books of accounts are not required to be audited, the last date for filing returns is 31 July 2023 .

2. The last date for filing ITR for businesses whose accounts need to be audited is 31 October 2023.

3. The last date for filing ITR for businesses with international transactions or certain domestic transactions is 30 November 2023.

4. The last date for filing revised ITR and belated returns has been fixed as December 31, 2023.

What will happen if ITR is not filed on time?

Interest: If you file your return after the last date, you will be required to pay interest at the rate of 1% per month on the unpaid tax amount under section 234A of the Income Tax Act.

Late fee: A fine of Rs 5,000 has to be paid under section 234F. This will be reduced to Rs 1,000 if the total income is less than Rs 5 lakh.

Loss Adjustment: If you have incurred loss in stock market, mutual funds, properties or any of your business, then you can carry it forward and adjust it against next year’s income. This helps in reducing your tax liability significantly. Adjustment of loss is allowed only if you declare the loss in your ITR and file it with the Income Tax Department before the due date.

Belated Return: If you are not able to file the ITR form till the last date and file it after that then it is called belated return. In belated returns also, taxpayers have to pay penalty and interest, but they are not allowed to adjust the loss in future. This year you can fill belated ITR till 31 December 2023.

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But offline ITR-1 and ITR-4 forms (ITR-1 and ITR-4) have been issued for filing Income Tax Return (ITR) for the financial year 2023-24. Offline ITR-1 and ITR-4 forms have come after the CBDT issued a notification in February.

Such people will be able to fill ITR-1 and ITR-4

According to the Income Tax Department’s website, ‘Excel utility of ITR-1 and ITR-4 for assessment year 2023-24 are available for filing.’ ITR-1 for people whose total income is less than Rs.50 lakh or up to Rs.50 lakh. Also, he has a house and income from other sources and agriculture up to Rs.5,000. Apart from this, ITR-4 (ITR-4) is for Individual and Hindu Undivided Family.

ITR-4 is for these people

If your income is more than Rs 50 lakh or up to Rs 5000 from agriculture under section 44AD, 44ADA or 44AE from business or any profession like medical-advocacy, then ITR-4 is for you. In the offline method, taxpayers will have to download the relevant form. After this it will have to be filled and uploaded on the portal of the department. However, on the other hand, taxpayers can give information about their income directly on the income tax portal in the online form.

For salaried class individuals to file their ITR easily, Form-16 (Form-16) issued by the employer will be necessary. The last date for issue of Form-16 by the employer is June 15. There is no need to audit the accounts of such taxpayers. On the basis of Form-16, you can file income tax return by 31 July 2023.

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Those people whose income is taxable, they have to file income tax return. Currently, there is an old tax regime and a new tax regime for filing individual income tax returns. The tax slab is different in these.

ITR form

Taxpayers will have to file their income tax returns for the financial year 2022-23 by 31 July. In February, the Central Board of Direct Taxes (CBDT) released ITR forms for this financial year. Taxpayers can file ITR as soon as this financial year ends. There are seven types of ITR forms for different individuals, businesses and companies, these include ITR 1 (Sahaj), ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7.

Penalty may have to be paid

Different ITR forms are filed according to different needs. Whereas ITR-1 and ITR-4 are simple forms that cater to a large number of small and medium taxpayers. However, people filing income tax should take care of one important thing, otherwise they may have to pay a fine of Rs 5,000.

Income tax return

Actually, the last date for filing ITR for the financial year 2022-23 is 31 July. In such a situation, if someone is not able to file income tax return till 31st July, then he will have time till 31st December to file the late return and pay the penalty. Rs 5,000 will have to be paid as penalty.

This is the provision

According to the Income Tax Department’s website, the penalty for late ITR filing is Rs 5,000, even after that if someone does not file ITR by the due date, then the amount for filing after that can be doubled. Apart from this, there is also a provision of punishment in some cases.

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Through a notification dated February 10, the Central Board of Direct Taxes (CBDT) has also notified ITR Forms 1-6, ITR-V (Verification Form) and Acknowledgment Form. Significantly, like the last financial year, this time also no significant changes have been made in the form. Therefore, this time also the last date for filing income tax return will be 31st July.

CBDT has already notified income tax return form

The CBDT has notified income tax return forms for assessment year 2023-24 (for income earned in 2022-23) much in advance, news agency PTI quoted Rajat Mohan, senior partner, AMRG & Associates, as saying. , which will help taxpayers to prepare their income returns at the beginning of this year. Last year such forms were notified in the first week of April.

What is the opinion of the knowledgeable?

Rajat Mohan further says that by notifying ITR forms ahead of time, e-filing portals, third party software companies, taxpayers etc. will get more time to file returns. This year, software vendors can utilize this additional time for early implementation of Excel utility and third party software for ITR filing.

What is ITR-1, ITR-2 and ITR-4?

ITR-1 50 is filed by those who receive income from salary, one house property and other sources like interest etc. with income up to Rs. ITR-4 is filed by individuals, Hindu Undivided Families (HUFs) and individuals or firms with a total income of up to Rs 50 lakh. Whereas, ITR-2 is filed by those people whose income comes from residential property.

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Finance Minister Nirmala Sitharaman had announced that in the new tax regime, tax will not be charged on annual income up to Rs 7 lakh. At the same time, now the ITR form has also been updated for the income tax return for the financial year 2022-23, in which some changes have also been made.

Income Tax Return

This time the Income Tax Department has notified Income Tax Return Form (ITR 1-6) and Income Tax Verification Form (ITR V) for the assessment year 2023-24. These forms will be used for filing return of income made in the financial year 2022-23. The last date for filing ITR for the assessment year 2023-24 is 31 July.

ITR Forms

Compared to previous years, the Income Tax Department has notified ITR forms ahead of time. At the same time, some changes have also been made in the ITR form, about which it becomes very important to know. Let us know what changes have been made in the ITR form this time.

These five changes have been made

• If you have earned any income from crypto and other virtual digital assets (VDA) in the financial year 2022-23, then you will have to report such income in a separate schedule provided in the new ITR form.
• Trading accounts now have the option to disclose turnover and income from intra-day trading.
• An option of Disclosure has also been added for persons opting for the new tax regime under section 115BAC of the Income Tax Act.
• Taxpayers have to disclose whether they are Foreign Institutional Investors or Foreign Portfolio Investors.
• A new questionnaire has been added in ITR 3 and ITR 4, in which information has to be given regarding the New Tax Regime in previous years.

While income tax, tax experts say that early notification of ITR forms is a welcome step as it will give taxpayers enough time to prepare their required information. At the same time, the new ITR forms will be applicable from 1 April 2023. At the same time, individual taxpayers will be able to file tax till 31 July 2023 this year.

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New ITR Form: The Modi government has given many facilities to income taxpayers in this budget and has also increased monitoring in some places. Many changes have been made in the new Income Tax Return Form issued by the Central Board of Direct Taxes (CBDT).

In this, many more information related to cryptocurrency to stock market will have to be disclosed. Overall, now the Income Tax Department will keep an eye on your every expenditure and investment and a slight mistake can be huge. However, there has not been much change for individual taxpayers in the new form.

This time the Central Board of Direct Taxes notified the income tax return form very early, so that later taxpayers do not have to face the rush in filling ITR. Earlier, the ITR form used to come usually by May-June, due to which a huge crowd of returnees gathered in July and technical difficulties had to be faced.

This time, due to the early arrival of the form, taxpayers can fill the return from April 1, as soon as the financial year ends. CBDT has fixed the last date for filing returns as July 31, 2023 only.

Now these revelations will have to be done (5 points)

• In The New ITR Form, Intraday Trading In The Stock Market Will Have To Be Shown Separately, Which Will Include Your Total Turnover And Profit From It.
• Donation Given To A Trust Has Been Exempted Under Section 80G Of Income Tax, So Now The Donor Will Have To Enter A Unique Number.
• If The Deducted TCS Is Related To Any Other Person, To Whom You Have To Transfer, Then Now It Has To Be Shown In The Return Form As Well.
• Traders Will Now Have To Give Information About The Selected Regime, So That It Can Be Prevented From Going Back To The New Regime.
• If You Invest In Crypto, Then The Profit Or Loss Due To This Will Also Have To Be Told In The Return.

Special rule for partner firm also (5 points)

• In The New Return Form, If A Partnership Firm Has Added A New Partner Or The Old One Has Retired, Then It Will Also Have To Be Informed And The Date Of Change Will Also Have To Be Mentioned.
• If You Have Taken Advance From Relatives Or Friends, Then Its Information Will Also Be Included In Your Income Tax Return Form.
• The Information About The Investments Made In The Past Of A Trust Will Also Be Included In The Return Form.
• It Has Also Become Necessary To Disclose The Secret Donation Received By The Trust. Tax Will Be Levied On This Amount In Excess Of The Prescribed Amount.
• Political Parties Receiving Donations Will Now Have To Disclose The Recognition Received From The Election Commission In The Return Form As Well.

Tax on digital assets (3 points)

• Apart From Crypto, If You Buy Or Sell NFT Or Other Virtual Assets, Then That Information Will Also Have To Be Given In ITR.
• Taxpayers Who Had Earlier Adopted The New Regime Will Now Have To Give This Information In The ITR.
• Those Who Have Invested Money In Foreign Markets Or With Institutional Investors Will Also Have To Show It In ITR.

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The Income Tax Department said that the Income Tax Return (ITR) forms for 2022-23 will be effective from April 1 and these have been notified much in advance to facilitate filing of returns from the beginning of the next assessment year.

Income Tax The Income

Tax Department said that in order to facilitate the taxpayers and to further simplify the process of filing returns, no major changes have been made in the ITR form as compared to last year. Only due to amendments in Income Tax Act, 1961 some necessary but minor changes have been made. The Central Board of Direct Taxes (CBDT) notified Income Tax Forms 1-6 on February 10 for individuals, professionals and companies for income earned in 2022-23.

CBDT has notified Income-tax Return Forms (ITR Forms) for the AY 2023-24 vide Notifications No. 04 & 05 of 2023 dtd 10.02.2023 & 14.02.2023 well in advance in order to enable filing of returns from the beginning of the ensuing AY.
Details in Press Releasehttps://t.co/LN67SHrZDi pic.twitter.com/Yle6EtFLIQ

— Income Tax India (@IncomeTaxIndia) February 15, 2023

Income Tax Login

Also, ITR Form-7 was notified on February 14 for charitable trusts, scientific research institutions, political parties and universities. “These ITR forms will be effective from April 1, 2023 and have already been notified to facilitate filing of returns from the beginning of the next assessment year,” the CBDT said in a statement.

ITR

Explain that ITR forms are usually notified by the end of March or beginning of April for a financial year. However, this time they have already been released.

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This change will bring convenience to the taxpayers and reduce the time taken for filing returns. There has been a jump in direct and indirect tax collection in 2022 due to clear signs of reform of the economy after the pandemic and government efforts to stop tax leakage.

Government will be strict on tax evasion

In the coming days, the government can act more strictly on the tax evaders. Along with this, apart from online gaming, stricter tax norms can also be considered for e-commerce and online service providers.

India will host G-20

India is ready to host the leaders of G-20 countries next year. Along with this, taxation in Digital Economy, ensuring fair share of tax to developing countries and taxation of Cryptocurrency will also be on the agenda.

Stocks are taxed long term

Rationalization of long term capital gains tax structure is also expected to bring uniformity in holding period among similar asset classes. Currently, long-term capital gains on shares held for more than a year are taxed at 10 per cent.

Tax system will change in the new year

Sale of immovable property and unlisted shares held for more than two years and debt equipment and jewelery held for more than three years attract long-term capital gains tax of 20 per cent. Some changes in the new tax system are expected to happen next year as well, as the government wants to make the system more attractive by freeing up individual taxpayers.

Taxpayers will get many options

Tax offices are working on preparing a common ITR form for most taxpayers. However, the forms (ITR-1 and 4) for individual taxpayers will continue. Taxpayers filing ITR-1 and ITR-4 will have the option to choose whether they want to file their tax returns out of the proposed normal ITR form or the existing form. Currently, there are seven types of ITR forms available for taxpayers with different series.

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In the new form, there will be a provision to enter the income from Digital Assets separately. With its arrival, there will be more convenience for the tax payers than before.

Inviting comments by December 15, the Central Board of Direct Taxes (CBDT) under the Ministry of Finance said in a statement that all taxpayers, except trusts and non-profit organizations, can submit their returns through this proposed new ITR form. Comments have been invited from stakeholders on the new form by December 15. At present, income tax returns are filed through ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) for small and medium taxpayers.

Form 1 Sahaj Form can be used by individuals with annual salary income up to Rs 50 lakh for individuals with income up to Rs 50 lakh, while Sugam Form can be used for individuals with income up to Rs 50 lakh, Hindu Undivided Families and firms prescribed Is. ITR-2 form is used by people earning income from residential property while ITR-3 form is for people earning profit from business and profession.

ITR- 7 for Trust ITR- 5 and Form 6 are specified for Limited Liability Partnership (LLP) and businesses whereas ITR-7 Form can be used by trusts. The CBDT said that ITR-1 and ITR-4 will continue to be in force but individual taxpayers will have the option to submit returns through this common ITR form.

The department will provide information on online usage,

CBDT said, “It is proposed to bring a common ITR form by merging all the return forms except ITR-7 form.” The objective of the new ITR is to facilitate and reduce the time taken for filing returns for individuals and non-business taxpayers. The CBDT said that this common ITR prepared on the basis of the suggestions received from all the stakeholders will be notified and the Income Tax Department will also inform about its online usage.

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The Finance Ministry on Tuesday released the draft Common ITR Form for all taxpayers. Under which income from virtual digital assets will have to be disclosed under a separate head. CBDT has sought opinion on the Common ITR Draft by December 15. With the introduction of this common ITR, people will be able to make tax filing easier.

According to CBDT, there will be a common form from ITR-1 to ITR-6. Only ITR-7 will be different. ITR-1, ITR-4 will also continue so that people can continue with the old ones. With the introduction of common ITR, it will be easier for people to file tax.

Presently there are 7 types of Income Tax Return (ITR) Forms At present, there are 7 types of Income Tax Return (ITR) Forms which are filed by different categories of taxpayers. ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler forms that are used by a large number of small and medium taxpayers. Sahaj can be filed by a person having income up to Rs 50 lakh, such income is derived from salary, house property / other sources (interest etc.).

On the other hand, ITR-4 can be filed by individuals, Hindu Undivided Families (HUFs) and firms whose total income is up to Rs 50 lakh and comes from business and profession. ITR-2 to be filed by people having income from residential property, ITR-3 to be filed by people earning income from business/profession, ITR-5 and 6 to be filed by LLPs and businessmen respectively, while ITR-7 to be filed by trusts goes.

Tax filing will be easier

The objective of the draft ITR is to bring ease in filing returns and significantly reduce the time taken for filing ITR by individuals and non-business type taxpayers. Taxpayers will not need to look for schedules that do not apply to them. It will have a smart design of the schedule in a user-friendly manner with better ordering, logical flow and increased scope of pre-filling.

Nangia Andersen LLP partner Sandeep Jhunjhunwala said that taxpayers filing income returns in Form ITR-2, ITR-3, ITR-5 and ITR-6 will not have the option of filing old forms.

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ITR can be filled with late fee

Even if you are not able to file ITR till the last deadline, you still have time. You can still file your tax return till December 31 this year. However, for this you will have to pay a late fee. First let us understand who has to pay the late fee. After that we will tell you the further process. Such taxpayers whose annual income is up to Rs 5 lakh will have to pay Rs 1000 as late fee.

Those whose annual income is more than 5 lakh rupees will have to pay a late fee of 5 thousand rupees. Not only this, they will also have to pay interest on late payment of tax. However, if your gross income is less than the basic exemption limit, you will not be penalized for late filing of ITR.

What is the method of filing return with late fee

Now let us tell you how you can file ITR after paying the late fee.

• For this, first you have to go to the website of Income Tax Department -www.incometax.gov.in/iec/foportal. Now fill your registration details and login to the e-filing portal. Select the option to file your ITR on the dashboard. Select the option of assessment year 2022-23.
• Now select your filing mode and ITR form applicable to you to proceed. Review your pre-filled data and if you need to edit anything, do so. Write down your income and deduction and check if there is any liability. Now verify it and complete the process.
• When the process is completed, you will get a confirmation message on your registered mobile number. Keep in mind that if you do not file your ITR by 31st December 2022, then you will not be able to file it after that. After this the Income Tax Department will inform you what is to be done.

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Income from interest- If you have received interest from savings account, term deposit and FD of bank or post office, then definitely provide the information about it. The interest earned becomes taxable after a certain limit.

Income from Capital Gains- Income received from sale of shares, property and securities etc. The tax rate on capital gains varies. It can range from 10 per cent to 20 per cent in different cases. There are 2 types of capital gains. Long term and short term.

Gift- Gifts to you in a financial year or any amount received from your family members or property can be taxable. Therefore, do not forget to enter its information in the ITR form. It is worth noting that there is no tax on gifts up to Rs 50,000 in a year.

Prize or Lottery- If you have received any amount in prize or lottery, then the total amount is taxed at the rate of flat 30 percent. Therefore, give this information to the government as well and avoid any kind of trouble.

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The Income Tax Department has also issued a new form by improving the income tax return load. Columns have been extended for necessary information in the new form. This is called ITR U. In this, why the previous return was not filed, why the income tax was less filled, it will also have to be told. Income tax payers who have filed returns on time do not have to fill this column. There is a provision for correction of errors in this form.

For example there is some mistake in filing the return in the financial year 2021-22 that an opportunity will be given to rectify the returns for the financial year 2022-23. The income tax payer will be allowed to make corrections only once.

Low income tax depositors will first have to deposit 50 per cent of the outstanding amount to make corrections. Tax advocate Ankit Gupta said that keeping in mind the interest of the income tax payer, the Income Tax Department has made a new form for filing income tax. A new form will open to file the return online, in which information about how much money is deposited in the income tax payer’s bank, how much interest has been received till now, how much money has been received from salary, what is the income from other sources.

This will not make it difficult to file the return. The Income Tax Department has fully taken into account the convenience of the income tax payer in creating the new form. If there is any problem while filling the form, information can be given to your lawyer or CA.

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If you have filled any wrong form then you can get notice from Income Tax Officer. The last date for filing ITR for the year 2022-23 under review is 31 July 2022. You can be fined for filing tax returns after this date. By the way, usually the income tax payers know which ITR form they have to fill, but many times if a wrong form is filed accidentally or unknowingly, then what should be done in such a situation.

Income Tax Department issues a total of 7 ITR forms. Of these, ITR-1, 2, 3 and 4 are for individual taxpayers only. If the income tax payer fills the wrong form then he may face problems. Income Tax The Income Tax Officer can declare your return as defective under section 139(9) of the Act.

What happens after ITR is declared defective?

If the Income Tax Officer declares your return defective, he can send you a notice. You have to file the revised return through the correct form within 15 days from the date of receipt of the notice. If you fail to do so, then your ITR will be considered invalid and you will have to pay a penalty for filing the return after that.

4 types of forms

If your total income in the last financial year is Rs 50 lakh, then you have to fill ITR-1 form. This income can be received from other sources including your salary, interest from bank deposits and pension. After this there is ITR Form-2. The details of capital gains, foreign income, income from property or income earned on becoming a director of the company have to be given in this form. Form-3 is for those people who not only get income from the methods mentioned in Form-2, but also get income from any other business and profession. ITR-4 form is for Individuals, HUF and Firms having income up to Rs 50 lakh. Apart from this, they also get income from other business and profession.

What are the other 3 forms

ITR-5 is for partnership companies, business trusts, investment funds. At the same time, ITR-6 is for those companies which are registered under section 11. The IT-7 form is for organizations such as charitable trusts, political parties, research organizations or news agencies.

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The last date for filing Income Tax Return AY 22-23 for the financial year 2021-22 or assessment year 2022-23 is 31 July 2022. There are indications from the government on one or two occasions that this time the date of filing returns will not be extended. In such a situation, if the ITR is not filed by the due date, the taxpayer may have to pay a penalty of between Rs 1,000 to Rs 5,000 before filing the ITR. Before July 31, if you want to avoid paying the penalty. Be sure to fill out your income tax return.

Income tax return is filed by filling an online form. Different forms are used for different types of taxpayers. The assessment of these firms has been issued by the Central Board of Direct Taxes (CBDT) for filing returns of income tax payers.

Let us know which type of taxpayer should use which form to file income tax?

ITR One (ITR 1)

Who should use?

Most of the people have to file ITR-1 form to file income tax return. Taxpayers falling under the following parameters are required to file their returns by filling the ITR-1 form.

1. All Indian citizens whose total income does not exceed Rs 50 lakh during a financial year.
2. All such people whose income comes from salary.
3. All people who have a house property, family pension, agriculture (Rs 5000 per month), interest from savings accounts, interest from deposits, income tax refund, income on enhanced compensation or any income from spouse, ITR 1 Income tax return has to be filed using the form.

Apart from this, the following people should not use the ITR One form. 

1. NRI
2. Those who get income from abroad.
3. Those whose income from agriculture is more than Rs 5000 per month.
4. Whose total income is more than Rs 50 lakh per annum.
5. Those who have income from the property of more than one house.
6. who are directors in a company.
7. Those who have invested in unlisted equity shares.

Let us tell you that section 115BAC has been added in ITR 1 for AY2021-22. Those opting for the new tax regime under section 115BAC should select ‘Yes’ in the new ITR form.

ITR 2 (ITR 2)

Who should use?

Form ITR 2 should be used by individuals or HUF (Hindu Undivided Families) who receive income from the following sources for filing income tax return.

1. Income arising from salary or pension.
2. Income from house property.
3. Income above Rs 50 lakh
4. Agricultural income of more than Rs.5,000.
5. Income generated abroad.
6. Those who are not eligible to file ITR 1.
7. Taxpayers who do not have income from profits and gains of business or profession.
8. Taxpayers who do not have income from profits and gains of business or profession in respect of interest, salary, bonus, commission or remuneration from a partnership firm.

Who shouldn’t use it?
No professional should use ITR 2 form for filing Income Tax Return.

ITR Three (ITR 3)

Who should use?
This form should be used by such individuals or firms who make any kind of income from any business or profession. These include partnership firms as well.

Who shouldn’t use it?

ITR 3 form should not be used by all those who derive income from anything other than business or profession.

ITR Four (ITR 4) SUGAM

Who should use?

1. All such people and organizations whose income is more than 50 lakh rupees per annum.
2. All such businessmen or professionals whose income is assessed on presumptive basis.

Who shouldn’t use it?

1. All such businessmen or professionals whose income is not assessed on presumptive basis.

ITR Five (ITR 5)

 Who should use? 

All Firms, LLPs, AOPs, Business Trusts and Investment Funds should use this form to file ITR.

Who shouldn’t use it?

1. It should not be used by any person or individual.
2. Also, those who need to file Form 7 should not use this form.

ITR 6 (ITR 6)

Who should use?

1. All such companies which are not required to use Form VII should use Form ITR 6.

Who shouldn’t use it?

All such companies which are required to use Form ITR VII.

ITR Seven (ITR 7)

Who should use?

Charitable companies, religious trusts, political parties, resource associations, news agencies and similar institutions as specified in the Act.

Who shouldn’t use it?

All such persons or institutions which fall under the category of other ITR forms.

Apart from this, if you feel in doubt in selecting the firms while filing the ITR return, then you should take the help of a professional to select the form and file the return.

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ITR will be filed without penalty!

Meanwhile, it is being claimed in all the news that if you do not file ITR by July 31, then after that you will have to pay a penalty. But let us tell you that in some cases ITR can be filed even after the last date without penalty. Let us know the rules related to this.

Income

tax experts say that under section 234F of income tax, the total income of a person during the financial year does not exceed the basic exemption limit, then there is a reason to file ITR late. that does not matter.

Understand in simple

language, if you understand in simple language, then any person with income up to 2.5 lakhs, if he files income tax after July 31, then he will not have to pay any kind of penalty. However, it depends on the tax regime selected by you. The exemption limit for opting for the new tax regime is Rs 2.5 lakh, irrespective of his age.

Exemption on age and annual income

Similarly, if one selects the old tax regime, then for those below 60 years of age, this exemption is Rs 2.5 lakh. At the same time, income up to Rs 3 lakh for those who are 60 years or more and less than 80 years is tax free. Similarly, the basic exemption limit for those above 80 years of age is 5 lakhs.

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In such a situation, if you have not filed ITR yet, then do it as soon as possible. But, experts also advise to be alert here. Often people make a mistake in filing ITR in a hurry. It is important to keep in mind 8 things in return filing.

It is important to choose the right ITR form

The Income Tax Department has issued several ITR forms. In these, forms have been given according to different categories. You have to choose the form according to your income source. Do not make mistake in choosing ITR form. If there is a mistake here, the department will reject your form and ask you to file a revised return under section 139(5).

Income proof is required

It is very important to give correct information about income in ITR. On this basis your return is filed correctly. Haste or willful misinformation of income can be heavy. Many a times taxpayers do not disclose all the sources of their income. If not, the Income Tax Department can send you a notice. It is necessary to give information like interest from savings account and income from house rent.

Provide all bank account details required

Many a times, even after taxpayers have multiple bank accounts, they give details of only selected bank accounts. In such a situation, their income is not properly assessed. It is not right to do so. It is clear in the rules of income tax that the details of all the bank accounts registered in the name of the taxpayer are mandatory.

Also give details of foreign bank account

Apart from the country, if you have a bank account in any other country, then it is also necessary to give its details in ITR. According to the rules, all taxpayers will have to provide information about bank accounts or any other foreign assets. If you have invested in shares of companies listed in foreign markets or have invested in mutual funds, then this information will also have to be given. There is a provision of notice and penalty in case of default.

Give gift information

According to the rules of income tax, if you have received a gift of more than 50 thousand rupees in a year, then tax will have to be paid on it. It has to be mentioned in ITR filing. There is also a provision for filing a revised return if it is not given or forgotten. But, there is a possibility of getting a notice in case of lapse.

Match income details from Form 26AS

You can get information about your income or TDS deducted from Form 26AS or Tax Credit Statement. It is necessary to give this information in the income tax return. For claiming tax refund, it is necessary that your income details match. Before filing the tax return, match the details of income from Form 26AS and Form 16/16A. In case of any mistake in tax calculation, return will not be filed and there is a possibility of getting notice.

Choose the correct option between new and old regime

Taxpayers get two options to file income tax return. A new option was added from 1st April 2020. By the way, taxpayers choose their tax regime as soon as the financial year starts. But, its selection is also necessary while filing income tax return. ITR will not be filed if the information is not given in the return.

verify tax return

After filing the return, the last step is to verify the ITR. Verification is very important after filing tax return. You can e-verify your tax return from your income tax e-filing portal or can also get it verified by sending it to CPC-Bangalore by speed post.

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