New ITR form for 2022-23. All you need to know

ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) cater to a large number of small and medium taxpayers of India.

The income tax department has notified new ITR forms for 2022-23. These also seek additional information about overseas retirement benefit accounts from taxpayers. The Central Board of Direct Taxes (CBDT) has notified ITR Form1 to ITR Form 5. The ITR forms for corporates and trusts (ITR 6 and 7) will be notified later.

Let’s take a look at what each of these forms means for taxpayers:

Also Read: Did You Know Being Charitable Can Help Save Taxes?

ITR Form 1 (Sahaj): ITR Form 1 is a simple form that caters to a large number of small and medium taxpayers in India. This has to be filled by salaried individuals with an annual income of less than Rs 50 lakh. It also seeks information about income from the overseas retirement funds to calculate net salary. This form has been more or less kept the same as last year. The only new addition is income from a retirement benefit account maintained in a foreign country. It also asks for details on whether the retirement benefit account is maintained in a notified country under section 89A of the I-T Act. Taxpayers can also claim relief from taxation under section 89A on this income.

ITR Form 2: This form is for individuals with annual income of more than Rs 50 lakh. It also captures income other than that from profit and gains from business and profession. This includes Short-term (STCG) and Long-term capital gains (LTCG) from investments, income from house property, etc. The IT Department has added high value deposits towards Employees Provident Fund (EPF) to the list. Interest accrued on deposits exceeding Rs 2.5 lakh per annum will have to be specified under ITR Form 2, which has been modified to capture the changes.

Also Read: What Is The Pink Tax And Are You Paying It?

ITR Form 3: This form is to be filed by those people who have income from business or profession. 

ITR Form 4 (Sugam): This form is for individuals, Hindu Undivided Families (HUFs) and firms with total income up to ₹50 lakh and having income from business and profession.

ITR Form 5: This is for taxpayers who earn from a partnership firm. This is essentially designed for corporate body Limited Liability Partnerships (LLPs).

Also Read: What Documents To Keep Ready While Filing Your ITR?

As per a report by Business Standard, AMRG & Associates Senior Partner Rajat Mohan said that the notification of ITR forms will pave the way for the government technology team to develop Excel utility well in time, helping the taxpayers for early filings.