Income Tax Forms: These are the modifications made to I-T forms. Details can be found here.

 Income Tax Forms: These are the modifications made to I-T forms. Details can be found here.

The Central Board of Direct Taxes (CBDT) recently released the fiscal year 2022-23 tax forms. The release of forms in February is seen as a positive move because taxpayers will be able to file their tax returns on time. Previously, these forms were notified in the months of March or April.

The deadline to file a tax return for AY 2023-24 is July 31, 2023.

"The early release of AY2023-24 Income Tax Forms provides taxpayers with ample time to file their returns. To make compliance even easier, the CBDT has stated that only changes to incorporate Income Tax Act amendments have been made in the forms since last year."

The forms include a separate schedule for cryptocurrency income.

Furthermore, a new questionnaire has been added to the ITR-3 and ITR-4 to determine whether the taxpayer previously opted out of the new tax regime. However, there is no discernible difference in the forms for salaried taxpayers.

Let us find out what other changes have been made to these income tax (I-T) forms.

These are the key points to remember in relation to the new tax forms:

1. Tax on virtual digital assets (VDA): There is now a cryptocurrency tax schedule (virtual digital assets). So, if you earned any income from cryptocurrencies (virtual digital assets) during fiscal year 2022-23, you must report it in a separate schedule provided in the tax form.

As previously stated, tax provisions for taxation of virtual digital assets were introduced in 2022-23, and thus taxation has followed.

There is a separate schedule for virtual digital assets that requires information such as the date of acquisition, the transfer head under which income will be taxed (capital gain), and the cost of acquisition.

2. Old versus new tax regime: A new questionnaire in ITR-3 and ITR-4 has been added to determine if the taxpayer has previously opted out of the new tax regime.

3. Salaried individuals: Aside from that, there is no discernible difference for individual or salaried taxpayers.

4. Common tax form: It is also worth noting that the tax department has yet to make the anticipated announcement of the proposed common ITR form in the Union Budget 2023. -24.

5. Intraday trading disclosure: The income tax (I-T) form now includes the option to disclose turnover and income from intraday trading in trading accounts.

Different ITR forms: ITR-1 is filed by an individual with an income of up to 50 lakh from salary, one house property, and other sources such as interest.

The ITR-2 is filed by taxpayers with residential property income, whereas the ITR-3 is filed by professionals.

Individuals, Hindu Undivided Families (HUFs), and firms with a total income of up to 50 lakh and income from business and profession can file the ITR-4.

LLPs and businesses file the ITR-5 and ITR-6.