The income tax department of India has notified new ITR forms for the financial year 2022-23, which also seek details of income from overseas retirement benefit accounts from taxpayers. Like last year, ITR1 can be filed by individuals having a total income up to Rs 50 lakh. The source of such income can include: salaries, income from one house property, and other sources such as interest income, dividends, etc., and agricultural income up to Rs 5,000. ITR forms 1-5 have been notified by the Central Board of Direct Taxes (CBDT). ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler forms that cater to a large number of small and medium taxpayers. Sahaj can be filed by an individual having income up to Rs 50 lakh and who receives income from salary, one house property and other sources (interest, etc).
ITR-4 can be filed by individuals, HUFs and firms with total income up to Rs 50 lakh and having income from business and profession.
ITR-3 is filed by people having income as profits from a business/ profession, while ITR-5 is filed by a corporate body limited liability partnership (LLP).
While the ITR-1 form has been kept broadly the same as last year, the new addition to the form was the inclusion of income from a retirement benefits account maintained in a foreign country for the calculation of net salary.
ITR-6 is for companies other than those claiming exemption under section 11 of the Income-tax Act. ITR-7 is yet to be notified by the government.
Other Income Tax Changes From April 1
Also, April 1 marks the beginning of a new financial year, and this means that several rules in the finance front are usually changed during this period. This year, many changes related to income tax, including crypto tax, revised TDS and TCS rates, ITR filing rules and others, have become applicable.
During the Budget 2022, the government has announced that if taxpayers do not file income tax returns for the previous year, a higher TDS and TCS will be applicable from the next financial year. It should also be noted that this rule will not be effective if the source of income is salary, provident fund — but will come into effect if the same is interest income, dividend income under the provisions of the Income Tax Act.
Another announcement that was made during the Budget 2022 was that senior citizens above the age of 75 years will not be required to file their income tax returns anymore starting from April 1. This was one of the big income tax rules changes announced in this year’s budget. However, this is subject to certain conditions.
Additionally, from today, the government will relax provisions under Section 80DD that offers tax breaks for differently-abled people. Under this, if an individual buys a life insurance policy meant for someone with disabilities, then they can claim deductions under Section 80DD even if the policy benefits come into effect while the individual is alive.
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