Different forms of returns are prescribed for different classes of taxpayers.
The Central Board of Direct Taxes (CBDT) had notified ITR forms 1-6, as well as ITR-V (verification form) and ITR acknowledgement form in advance. It will give taxpayers enough time to prepare for relevant disclosures and reporting requirements.
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Income tax return forms have been notified for Assessment Year 2023-24 (for income earned in FY2022-23).
Different forms of returns are prescribed for different classes of taxpayers. The return forms are known as ITR forms (Income Tax Return Forms).
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There are no substantial changes in the six income tax return forms catering to individuals, professionals and businesses, notified by the CBDT.
Here are the key things to know about ITR forms;
The taxpayers filing ITRs 1 to ITR 4, to have an option to file individual tax forms or the common ITR form as per their choice.
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In November 2022, in order to simplify the filing of ITR, the CBDT issued a draft proposal to introduce a common income tax return (ITR) form to replace ITR 1-6. The proposed draft ITR takes a relook at the return filing system in tandem with international best practices and proposes to introduce a common ITR.
ITR-1 and ITR-4 are simpler forms that cater to a large number of small and medium taxpayers.
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ITR-1 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, Hindu Undivided Families (HUFs) and firms with total income up to Rs 50 lakh and having income from business and profession.
While ITR-2 is filed by people having income from residential property and having income above Rs 50 lakh, ITR-3 is filed by professionals. ITR-5 and ITR-6 are filed by LLPs and businesses. ITR-7 is for taxpayers including companies that are a charitable or religious trust, political party, research association, news agency or similar organizations specified in the Act.
What Is The Appropriate ITR Form To Use?
If you are not sure which ITR to file, you may select ‘Help me decide which ITR Form’ on the e-filing portal (https://www.incometax.gov.in/iec/foportal/) while filing ITR and click ‘Proceed’. Here the system helps you determine the correct ITR, then you can proceed with filing your ITR.
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In case you are not aware which ITR or schedules are applicable to you or income and deductions details, your answers in response to a set of questions will guide in determining the same and help you in correct / error free filing of ITR.
