Income taxpayers must take note that new ITR forms have been notified by the finance ministry for the Assessent Year 2022-23. The Central Board of Direct Taxes (CBDT) has notified the forms ITR-1 to ITR-5. The ITR forms seek additional information with regard to overseas retirement benefits and interest accrual on provident fund deposits exceeding Rs 2.5 lakh a year.
The ITR Form 1-Sahaj and ITR Form 4-Sugam are forms that cater to a large number of small and medium taxpayers, the CBDT said. The notification gives enough time to assessees to file timely returns, it said. “It is one of those unusual occurrences when the CBDT has notified all the ITR forms (except the form for charitable trust) on the first day of the relevant year (AY 2022-23). The just notified ITR forms have additional particulars of disclosures to provide more information at the time of filing of return of income itself,” said Om Rajpurohit, director, AMRG & Associates.
ITR 1 SAHAJ
The ITR-1 Sahaj form needs to be filled by individuals having income up to Rs 50 lakh.
“For individuals being a resident (other than not ordinarily resident) having total income upto Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest etc.), and agricultural income upto Rs.5 thousand,” the CBDT said.
The form has been kept broadly the same as last year. However, the assessee will have to provide information about income from overseas retirement fund while calculating net salary.
The assessee will have to disclose whether the overseas retirement fund is in a notified country.
The ITR-2 form seeks information regarding the interest accrued in the provident fund on contributions exceeding Rs 2.5 lakh per annum.
In order to tax high-value depositors in the Employees’ Provident Fund (EPF), the government last year said interest on employee contributions to the provident fund over Rs 2.5 lakh per annum would be taxed from April 1, 2021.
This form is filed by individuals and Hindu Undivided Family (HUF) not having income from business and profession.
The assessee would be required to provide additional information on dividend income, and dividend income chargeable at Double Taxation Avoidance Agreement (DTAA) rates.
ITR-3 is filed by people having income as profits from business/ profession.
“For individuals and HUFs having income from profits and gains of business or profession,” the CBDT stated.
ITR 4 SUGAM
ITR-4 can be filed by individuals, HUFs and firms with total income up to Rs 50 lakh and having income from business and profession.
ITR-4 Sugam is for Individuals, HUFs and Firms (other than LLP) being a resident having total income upto Rs 50 lakh and having income from business and profession which is computed under sections (44AD, 44ADA or 44AE.)
This is not for an individual who is either Director in a company or has invested in unlisted equity shares.
ITR-5 is filed by Limited Liability Partnership (LLPs).
For persons other than- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7, according to the CBDT.
CRYPTOCURRENCY TAX ITR
AKM Global Partner- Tax, Sandeep Sehgal, said some changes that have been introduced in the forms include a column for relief to be claimed under section 89A for retirement account maintained overseas by Indian residents as well as a separate column with respect to the dividend received by FIIs, according to PTI report.
“The forms do not mention about taxation for cryptocurrencies at all. Hence, there is still ambiguity about how the incomes from cryptos shall be reported for FY 2021-22,” Sehgal added.