7 Key Changes in New Income Tax Returns forms for FY 2022-23 / AY 2023-24
The tax department has notified the ITR forms for AY 2023-24 early compared to previous years. Last year, the CBDT notified the forms for AY 2022-23 on March 30.
1) Separate schedule for Crypto/VDA income
If you made any income from crypto and other virtual digital assets in FY 2022-23 then you will have to report such income in a separate schedule Tax provisions for taxation of VDAs was introduced from FY 2022-23 hence the addition Separate schedule for VDA that requires details like date of acquisition, date of transfer head under which income to be taxed (Capital Gain), cost of acquisition (In case of gift; a. Enter the amount etc to be filled in by a person who is in receipt of amounts).
2) Intraday Trading Disclosure There is now an option to disclose turnover and income from intra-day trading in the trading accounts.
3) Old vs New tax regime A new questionnaire in ITR 3 and ITR 4 has been added to determine if the taxpayer has opted out of the New Tax Regime in previous years.
4) Foreign Institutional Investor Disclosure Foreign institutional investors (FII/FPI) must provide their SEBI registration number as an additional disclosure measure.
5) Balance Sheet Reporting Advances received from individuals specified in Sec 40A(2)(b) of the Income Tax Act and others must be reported under the ‘Advances’ heading in Source of Funds
6) No significant change for individual/salaried taxpayers Apart from the separate schedule for crypto/VDAs, there is no major change in the ITR forms for AY 2023-24.
7) No common return form The tax department has not yet made the expected announcement of a common ITR form proposed in the Union Budget 2023-24.
Taxpayers can start working to estimate tax liability and disclosure required in ITR forms.
With the timely release of income tax return forms taxpayers can expect to do their filing soon after the financial year ends and don’t expect 31 July date to be extended
Sources:
