New ITR forms for AY 2023-24: The Income Tax Department has notified Income Tax Return forms (ITR 1-6) and Income Tax verification form (ITR V) for the assessment year 2023-24. These forms will be used for return filing for income made in FY 2022-23.
The last date for ITR filing for AY 2023-24 is July 31. The tax department has notified the ITR forms for AY 2023-24 early compared to previous years. Last year, the CBDT notified the forms for AY 2022-23 on March 30. Let’s look at the most important points, including what’s new, in the ITR forms.
Separate schedule for Crypto/VDA income
If you made any income from crypto and other virtual digital assets in FY 2022-23 then you will have to report such income in a separate schedule provided in the new ITR forms. The details that you need to provide include finer points like the date of acquisition, date of transfer and head under which income to be taxed (capital gain). If you received crypto/VDA as a gift, then you will have to provide the details of the amount on which tax has been paid for the transfer of the asset.
“The new ITR 1 and 2 forms notified by the CBDT are broadly similar to that of the previous year with some additional details required to be filed in for VDA assets. There is a separate schedule for VDA that requires details like date of acquisition, date of transfer head under which income to be taxed (Capital Gain), cost of acquisition (In case of gift; a. Enter the amount etc to be filled in by a person who is in receipt of amounts) for transfer of VDA. Other minor tweaks are in the general info section and TCS
No significant change for individual/salaried taxpayers
Apart from the separate schedule for crypto/VDAs, there is no major change in the ITR forms for AY 2023-24.
There are some minor tweaks in the new ITR forms:
- There is now an option to disclose turnover and income from intra-day trading in the trading accounts.
- An option for disclosure for individuals who opted for the New Tax Regime under Section 115BAC of the Income Tax Act has also been added to the new forms.
Taxpayers will have to disclose whether they are foreign institutional investors or foreign portfolio investors.
Early notification, a welcome move
Tax experts say that the early notification of ITR forms is a welcome move as it will help taxpayers with ample time to prepare for relevant disclosures.
“CBDT has released tax return forms for the financial year 2022-23 on 10 February 2023. ITR forms have been notified well in advance this year, a very welcome move and a step further towards ease of compliance. This will help taxpayers to be well prepared on the disclosures and reporting requirements in the tax return forms,” said Saraswathi Kasturirangan, Partner Deloitte India.
No common return form
The tax department has not yet made the expected announcement of a common ITR form proposed in the Union Budget 2023-24.
What are the notified ITR forms?
- ITR-1 or Sahaj: For individuals with a total income of up to Rs 50 lakh
- ITR-2: For individuals and HUFs with income from profits and gains of business or profession
- ITR-3: For individuals and HUFs having income from profits and gains of business or profession
- ITR- 4 or Sugam, ITR-5 and ITR-6.
Calculate your Tax Liability for AY 2023-24
The new ITR forms will come into effect from April 1, 2023.