For the financial year 2022-2023, the Income-Tax Department has sent notices regarding the forms for filing income tax returns for individuals and businesses: forms 1-6, ITR-V (verification form), and ITR acknowledgment form availability were notified by the Central Board of Direct Taxes (CBDT) on February 10.
The early notification of income tax return forms for Assessment Year 2023–24 (income earned in 2022-23) would help taxpayers prepare their returns as soon as possible, according to Rajat Mohan, Senior Partner at AMRG & Associates.
Compared to last year, when the forms were announced in the first week of April, this year’s early announcement gives all parties plenty of time to prepare, including the e-filing system, outside software providers, taxpayers, and tax professionals. Software providers can use this additional time to install third-party ITR filing software and Excel utilities.
The streamlined ITR-1 and ITR-4 forms are designed for use by a large number of small and medium-sized taxpayers. ITR-1 is for people whose annual income is up to Rs 50 lakh and comes from a salary, one residential property, and other sources like interest.
Hindu Undivided Families (HUFs), businesses, and individuals with a combined annual income of up to Rs 50 lakh are required to file Form ITR-4. Other types, such as ITR-2, ITR-3, ITR-5, and ITR-6, are made for certain groups of people, like individuals who make money from residential real estate, professionals, LLPs, and businesses.
Excel utilities for ITR-1 and ITR-4 for AY 2023–24 are now accessible for filing on the e-filing income tax portal, but the JSON utility for these forms has not yet been made available. The tax administration has yet to distribute additional income tax return forms.
Currently, those who want to file an ITR must download the program from the income tax e-filing website. The utility form must be uploaded on the income tax e-filing portal after the information regarding income and deductions has been filled out on it.
Individuals can simply submit their information on the internet form on the e-filing income tax portal for online filing. It is crucial to keep in mind that after the ITR form has been submitted, whether offline or online, the taxpayer must verify it before the income tax department may process it.
Although the income tax agency has made offline forms available, many salaried persons need Form 16 from their employers to make ITR filing simple. Employers must give employees Form 16 by June 15. For FY 2022–2023 (AY 2023–2024), the ITR reporting date for taxpayers whose accounts do not require auditing is July 31, 2023.
The CBDT distributed the income tax return forms in February rather than its customary April window, breaking with tradition. Other than the addition of a section mandating taxpayers to report information on cryptocurrency and virtual digital asset transactions, the income tax return forms have not undergone any significant modifications this year. As stated in Budget 2022, the government changed the income tax legislation to include crypto and other virtual digital assets as taxable income starting on April 1, 2022.