The Indian tax authorities have filed new ITR forms for fiscal year 2022-23, which also request information on income from foreign taxpayers’ retirement accounts. Like last year, ITR1 can be filed by persons with total income up to Rs 50 lakh. The source of such income can be: salaries, single house income and other sources such as interest income, dividends, etc., and farm income up to Rs 5,000. ITR forms 1-5 have been notified by the Central Council for Direct Taxes (CBDT). ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler forms suitable for a large number of small and medium-sized taxpayers. Sahaj can be filed by a person who has an income up to Rs 50 lakh and who receives income from salary, a house property and other sources (interest, etc.).
ITR-4 can be filed by individuals, HUFs and corporations with a total income of up to Rs 50 lakh and having income from business and profession.
ITR-3 is filed by people who have income as profits from a business/profession while ITR-5 is filed by a limited liability company (LLP).
While the ITR-1 form has been kept broadly the same as last year, the new addition to the form was the inclusion of income from a retirement benefit account abroad for the purpose of calculating net pay.
ITR-6 is for businesses other than those claiming exemption under Section 11 of the Income Tax Act. ITR-7 has yet to be notified by the government.
Other income tax changes from April 1
Also, April 1 marks the beginning of a new fiscal year, and this means that several rules on the financial front are usually changed during this period. Many changes related to income tax have come into effect this year, including crypto tax, revised TDS and TCS rates, ITR filing rules, and others.
During the 2022 Budget, the government announced that if taxpayers do not file an income tax return for the previous year, a higher TDS and TCS will apply from next financial year. It should also be noted that this rule will not be effective if the source of income is salary, provisioning fund, but will come into effect if the same is interest income, dividend income under the provisions of the Income Tax Act.
Another announcement made during the 2022 budget was that seniors over the age of 75 will no longer be required to file income tax returns from April 1. This was one of the major changes to income tax rules announced in this year’s budget. However, this is subject to certain conditions.
In addition, as of today, the government will relax provisions under Section 80DD that provides tax benefits for people with disabilities. Under this, if a person purchases a life insurance policy intended for someone with a disability, he or she can claim deductions under Section 80DD even if the policy benefits take effect while the person is alive.
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