The Central Board of Direct Taxes (CBDT) has notified the income tax return forms for the current financial year 2022-23 (AY 2023-24). The IT forms were notified on February 10, 2023. There are no major changes in the IT forms. However, the ITR forms have been notified almost two months earlier. Usually, the government notified the ITR forms at the end of the financial year or the start of the new financial year. Do note that the last date for filing ITR for FY 2022-23 for individuals (whose accounts are not required to be audited) is July 31, 2023.
There is no change in eligibility criteria regarding who can file the ITR-1 form. ITRI, also known as Sahaj, is applicable for individuals who are resident individuals, whose total income does not exceed Rs 50 lakh. The sources of income must be salary income, one house property, other sources such as interest income, dividend income etc. and agricultural income up to Rs 5,000.
Do note that IT forms cannot be filed by individuals who are either directors in a company or holding unlisted equity shares. Individuals whose tax has been deducted under section 194N TDS on cash withdrawal from banks) or have income tax liability for ESOPs are barred from using ITR-1 form for filing tax returns. Hindu Undivided Families (HUFs) cannot use ITR-1 to file their tax return for FY 2022-23.
Similarly, ITR-2 will be used by individuals or Hindu Undivided Families (HUFs) provided they do not have income from business or profession. This means that any individual having capital gains or losses from sale of assets such as equity shares, mutual funds, house property etc., then such gains or losses will be reported to tax department via ITR-2. Similarly, if the taxpayer has more than one house property or his/her status is non-resident, then ITR-2 will be used to file a tax return.
Further, if an individual is a director in a company or holding unlisted equity shares, then ITR-2 will be used for income tax return filing.
ITR-3 is used by individuals or HUFS having income from businesses or professions. If an individual has opted for a new tax regime in the previous financial years, then they are required to provide the financial year in which the new tax regime was exercised and the acknowledgement number for Form 10E.
According to income tax laws, if an individual opts for a new tax regime, then they will have to continue with the same tax regime. Unlike salaried individuals, they do not have the option to choose tax regime as per their choice in every financial year.
ITR-4 forms is for individuals having businesses and profession and has opted for the presumptive scheme under the Income-tax Act, 1961. As per the notified ITR form, ITR form can be used by individuals, HUFs, firms (other than Limited Liability Partnership firms), having total income up to Rs 50 lakh, and having income from businesses and professions which is computed under section 44AD, 44ADA, 44AE.
ITR-4, also known as Sugam, cannot be used by individuals who is either director in a company or has invested in unlisted equity shares or has deferred income tax on ESOPs or has agricultural income exceeding R$ 5,000. Further, nonresidents cannot use ITR-4 to file their tax returns.
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ITR-5 is applicable for taxpayers other than individuals, HUFs, companies or those filing ITR-7. ITR-5 is usually used by LLPs, cooperative societies and so on. ITR-6 is used by companies.