ITR forms undergo changes for the AY 2023-24. Here are the latest updates

Date : 20/02/2023
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Changes in ITR forms for AY 2023-24

The Central Board of Direct Taxes (CBDT) keeps making changes to the income tax rules and other aspects pertaining to tax filing. The CBDT updated the Income Tax Return (ITR) forms used for tax filing. These include ITR – 1 Sahaj, ITR – 2, ITR – 3, ITR – 4 Sugam, ITR – 5, ITR – 6, and ITR – V. Changes have also been made to the ITR Acknowledgement form.

The changed forms will come into effect from 1^st April 2023. Here’s a look at the changes –

Disclosure in reporting retirement income

There’s a new disclosure under the ‘Income from retirement benefits account’. If you receive taxable income on which you claimed exemption under Section 89A in the previous years, you will have to disclose the income.

Cryptocurrency or Virtual Digital Asset (VDA)

There ITR has introduced another section called the VDA. If you earn any profit from cryptocurrency or VDA, you have to report it under the section. Moreover, if the income from VDA is considered a capital gain, you must give quarterly reports under the Capital Gains Schedule. Each VDA transaction should also be reported along with the respective dates.

Disclosure about intraday trading

Another new section has been added called the ‘Trading Account’. In this section, income and turnover from intraday trading should be recorded.

Choosing the tax regime

In ITR3 and ITR 4, a new questionnaire asks the taxpayer about the selected tax regime.

FII Disclosure

This is with respect to Foreign Institutional Investors. They have been mandated to furnish their SEBI registration number in the ITR.

Reporting of Balance Sheet

There are changes in the reporting of the balance sheet. Advances received from individuals defined under Section 40A (2)(b) of the Act should be reported under ‘Advances’ under ‘Source of Funds’.

As a taxpayer, you should know about these changes so that the newly introduced sections can be filled out duly. Incorrect ITR filing might impact your returns and result in a penalty. So, be an informed taxpayer and pay your taxes timely. The deadline for filing your returns for the financial year 2022-23 is 31^st July 2023. Pay on time to reduce hassles.