The Indian government has notified ITR forms, ITR 1 to ITR 6 for the F.Y. 2022-2023 (A.Y. 2023-2024) on 10th Feb 2023 and ITR 7 on 14 Feb 2023. There are no major changes in the Forms, but they have been notified approximately 2 months earlier than usual. Netizens are applauding this move as it will help the taxpayers be prepared for the reporting requirements before income tax e-filing and is a great step towards simplifying taxes.
By keeping abreast of the latest updates in tax laws, you can avoid penalties and increase tax-saving opportunities. This article provides the latest updates on income tax return forms for the current financial year, providing an overview of the changes that taxpayers need to be aware of.
Latest Updates on Income Tax Return Forms for the Current F.Y.
Here are the latest updates in the Income Tax Returns as announced by the Indian Government in the current F.Y. –
- Proposed a Common ITR Form: The Finance Minister, Mrs. Nirmala Sitharaman, clearly mentioned her intention to introduce a common ITR Form to simplify the ITR filing process and to strengthen the grievance redressal system. The CBDT proposed to merge all ITR forms and introduce a common ITR Form, except ITR 1, ITR 4, and ITR 7. However, CBDT has already notified the ITR Forms for the current F.Y., and it does not include the common ITR Form. The Forms notified include ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR V and ITR acknowledgment. If you are in a dilemma about which ITR form to choose, leave your dilemma behind and rely on your CAs for the best advice. Since a common ITR Form was not introduced, it is expected that the government is still working on it, and it might get notified next year. Now that the ITR Forms are available, you file your ITR at nominal charges on various portals.
- ITR Forms Notified in Advance: In a very welcome move by the Income Tax Department, the CBDT released the Income Tax Return Forms well in advance. This will make it easier to file ITR. It will also help you stay up-to-date and ready with the data needed for reporting and disclosures. No major changes have been introduced in the ITR Forms. Even though the draft common ITR form was released in November 2022, the current notification of ITR forms indicates that taxpayers will have to wait for the common ITR Form. All CA assisted ITR filing services further simplify the tax filing process by assisting you throughout each step of the ITR filing process.
- Income from Virtual Digital Asset (VDA): A separate schedule has been added to the existing ITR forms to allow taxpayers to report their income from Virtual Digital Assets like Cryptocurrencies and NFTs. This addition was quite predictable and is in line with the introduction of tax provisions for Virtual digital assets (VDAs) in FY 2022-2023. Hire an eCA and ensure accurate reporting of VDA income in the ITR.
Hurry! The last date for ITR filing is approaching, and if you are an individual who is not required to get your accounts audited, then you have to file your ITR by 31st July 2023 to avoid penalties and late fees. Remember to choose the right ITR form for your needs and be aware of all the reporting and disclosure requirements before filing your ITR. If you are still confused about which ITR Form to choose or need any assistance in ITR filing, hire an eCA and relax while you get the best ITR filing service.
(This article is for general information purpopse, please confirm with your CA or Financial Advisor, we are no way responsible for any problems whatsoever)