The Central Board of Direct Taxes (CBDT) has announced the new income tax return (ITR) forms for the financial year 2022-23, or assessment year 2023-24. The CBDT made the announcement through a notification a few days ago, on February 10, 2023.
As of now, there are seven income tax return forms. These include ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7.
Though there are no major changes in these forms, the notification was issued at least two months earlier than usual. Typically, the government issues a notification regarding the ITR forms either at the end of the financial year, in which case it would have been around the end of March 2023, or at the start of the new financial year, i.e., at the beginning of April 2023.
As of now, resident individuals whose income (from salary, single house, bank interest, and dividend) does not exceed Rs 50 lakh can use ITR-1, also known as Sahaj to file their annual income tax return. Those resident individuals with agricultural income up to Rs 5,000 can also file their income tax return through Sahaj.
Individuals and Hindu Undivided Families (HUF) having income from business or profession can file their returns using ITR-3.
ITR-2 can be used by individuals or Hindu undivided families (HUFs) who do not have income from business or profession. These would include income from sale of assets such as shares, mutual funds or even income from more than one house. Individuals serving as director in a company or holding unlisted equity shares also have to file their return using ITR-2.
The other forms, namely ITR-4, which is also known as Sugam, ITR-5, ITR-6, and ITR-7 are for other categories of taxpayers. These include entities, such as companies, limited liability partnerships and HUFs, as well as individuals under other categories not falling into any of the previous categories.
Firms and companies can use ITR-5, ITR-6 and ITR-7 to file their income tax returns.
The last date for filing of income tax return for individuals whose accounts are not required to be audited is July 31 of the same year. For FY 2022-23, it is July 31, 2023.
