New ITR Forms Released By Income Tax Department - Check Out The List Of Changes

The Central Board of Direct Taxes (CBDT) has just released the new income tax return (ITR) forms for the financial year 2023-24. Usually, the government notifies about changes in the ITR forms during the end or beginning of a financial year. This early notification of ITR forms provides taxpayers plenty of time to do their filing soon after the financial year ends. The new ITR forms cater to a wide range of taxpayers, from individuals to businesses and LLPs. In this article, we will discuss the changes in the new ITR forms.

As per the new ITR forms introduced by the CBDT, ITR Form 1 can be filed by an individual having income up to ₹50 lakh and who receives income from salary, property, or other sources (such as interest, etc.). ITR-2 is filed by people having income above ₹50 lakh and having income from residential property. ITR-3 is for those individual(s) that get their income as profits from business/profession. ITR Form 4 are a wide range of forms that cater to a number of small and medium taxpayers. ITR-5 is filed by Limited Liability Partnerships (LLPs) and businesses, and ITR-6 is filed by businesses respectively.

Taxpayers should be aware that there are no major changes in the ITR forms. However, there are a few distinct changes that the taxpayers should know: 

No Changes in ITR-1

There have been no changes in the ITR-1 form. It remains identical to before and can be filed by individuals who have an income of up to ₹50 lakh and those who receive income from salary, property, or other sources.

Reporting Income From Virtual Digital Assets

A new system for reporting Income from Virtual Digital Assets has been included under the section on Capital Gains in the remaining ITR forms. This new system requires taxpayers to report the date of acquisition, date of transfer, cost of acquisition, and proceeds received on the sale of VDAs. It is also important to note that income from VDAs must be reported quarterly. 

Additional Questions Related To Selection Of The New Tax Regime Added

Apart from the changes mentioned above, changes have been made to the ITR forms to include questions related to the selection of the new tax regime. The new ITR form requires taxpayers to select if they have opted for the new regime in the last assessment year and also select the assessment year in which the new regime was opted for.  Another question has been added asking whether taxpayers have opted out of the New Regime in any of the previous years. 

In conclusion, the early notification of new ITR forms for the assessment year 2023-24 will give taxpayers ample time to do their filing soon after the financial year ends. There are no major changes in the ITR forms, but the inclusion of new schedules for reporting income from virtual digital assets and additional questions relating to the selection of the new tax regime is important to note. Taxpayers are advised to keep these changes in consideration while filing their ITR.

Also Read: Big Income Tax Relief Under New Regime