This article will comprehensively review the ITR forms available for the AY 2022-23 or FY 2021-22. Readers are requested to check them out to build up awareness of the given issue.
If you are a salaried professional or a business entrepreneur, filing a return related to Income Tax remains the mandate. However, one should be able to file the return properly in accordance with the norms as laid down by the Indian Government.
We request you to note that this is a regular affair at the end of each financial year, failing which a fine can be imposed on the concerned individual. Lately filled income tax return formats are known as belated ITRs. A late fee can be imposed in such cases, and the individual might have to pay extra money to get the return filed.
ITR Forms For The AY 2022-23 Or FY 2021-22
The Income-tax (Fourth Amendment) Rules, 2022, have been published by the Central Board of Direct Taxes (CBDT) in a Notification dated March 30, 2022. The CBDT announced five income tax return (ITR) forms with this revision for the assessment year 2022–23, which is relevant to the fiscal year (FY) 2021–22.
The new ITR forms for the fiscal year 2022–2023 request more information from taxpayers, such as information about investments in unincorporated entities and income from foreign retirement benefit accounts. Please continue to read the blog, in order to find out more.
Income-Tax (Fourth Amendment) Rules, 2022: A Summary
ITR Forms SAHAJ ITR-1, ITR-2, ITR-3, SUGAM ITR4, ITR-5, ITR-6, ITR-V, and ITR-Ack for the Assessment Year 2022–23 have been made public by the CBDT. by the 2022 Income-tax (Fourth Amendment) Rules.
Except for a few to include the changes or alterations made by the Finance Act of the relevant year to integrate the changes or modifications in the Finance Act of the applicable year, the notified ITR forms do not contain any significant amendments or changes compared to the previous year.
Financial Statement (ITR)
The Income Tax Return (ITR) is a document that taxpayers use to report information about the money they’ve made and the taxes that need to be paid to the IRS. Financial statements are drawn regularly in every business, which considers every point of income and gives a clear computation of debts within the business framework. Income tax returns can be filled up based on the total income of the business entity or the individually salaried persons.
ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 are the seven different forms the department has yet to announce. Therefore, every taxpayer must submit their ITR by the deadline, if not earlier.
Late filing of income tax returns might call for a heavy penalty for the individual taxpayer. However, the applicability of ITR forms varies according to the taxpayer’s sources of income, the amount of money produced, and the taxpayer’s classification, such as individual, HUF, firm, etc.
ITR Form 1 or SAHAJ
ITR 1 Sahaj Form and Form 4 (Sugam), which are straightforward forms, are used by many small- and medium-sized taxpayers. SAHAJ is applicable if you are a resident (other than one who is not typically a resident) and have a total annual income of up to ₹50 lakh, net income from salaries, one primary residence, other sources (such as interest), and up to ₹5000 from agriculture.
This form is not relevant to directors of companies, who had investments in unlisted equity shares, had TDS deducted under section 194N, or had income tax on ESOP postponed.
SAHAJ Or ITR Form 1 For The AY 2022–2023
The ITR-1 form remained almost unchanged from the previous year; the only change was the addition of income from retirement benefit accounts kept in foreign countries to calculate net salary.
Section 89A of the Income Tax Act also inquires whether the retirement mentioned above benefits account was kept in a nation that had been notified. Additionally, under section 89A, taxpayers are exempt from paying taxes on this income.
Form ITR 2
This form is for salaried individuals and HUFs who derive their income from sources other than their place of business. In other words, taxpayers who do not fall under the business income category may file the ITR 2 form.
Form ITR 3
Taxpayers who get income from other businesses or professions may file Form ITR-3. In order to know more on this, one has to log in to the concerned portals floated by the Indian income tax department in order to understand the intricacies. However, we suggest that you might require professional help in this regard, and there is no harm in it.
Form 4 ITR or Sugam
Individuals, HUFs, and companies with a total income of up to Rs. 50 lakh and with income from other companies and professions computed by sections 44AD, 44ADA, or 44AE of the Income Tax Act may file an ITR Form Sugam 4.
- Taxpayers in the influential company income group who can provide a fictitious estimate of their annual turnover may use this form.
- It does not apply to anyone who is a firm director, has invested in unlisted equity shares, has income tax deferred on an ESOP, or earns more than ₹5000 from agriculture.
Form ITR 5
A corporation or limited liability partnership may file the ITR-5 (LLP). Please understand the specified norms as laid down by the Government.
Form ITR 6
For corporations registered under a different section than 11, ITR form 6 is relevant. Please understand the norms laid down by the Government.
Amendment To Rule 12: ITR Filing Procedure
The process for filing ITR Forms has stayed the same from the previous year. CBDT has included the modifications about ITR forms for the AY 2022–23 under Rule 12 of the Income Tax Rules,1962.
The procedure for filing an income tax return in an ITR is outlined in Rule 12 of the Income Tax Rules of 1962. For the AY 2022–2023, the ITR forms ITR-1 to ITR-6 have the following changes announced.
- To make the amendments valid for AY 2022–23, the year 2022′ is swapped out for the number ‘2021’ in Rule 12(1).
- To make the ITR forms relevant for the AY 2021–2022 or earlier assessment years that were notified for corresponding years, the year 2021′ is substituted for the figure ‘2020’ in Rule 12(5).
- The first day of April 2022 will mark the effective date of this modified regulation.
- For the AY 2022–2023, new ITR Forms SAHAJ ITR-1, ITR-2, ITR-3, SUGAM ITR-4, ITR-5, ITR-6, and ITR-V have been introduced.
When filling out the Nature of Employment section of the old ITR forms, a person receiving a pension was required to select “Pensioners.” The following choices have been added for seniors on the new ITR forms: Pensioners from the CG, SC, PSU, and other pensioner categories.
This article will provide insightful knowledge on ITR forms. Most legal experts suggest that filing an income tax return is not easy, and you must have careful documentation in place. For more information, reach out to the experts of Vakilsearch, one of the most reputed legal firms in the country.