INCOME TAX RETURNS

For every assessment year any person who crosses the threshold limit is to file income tax return.  There are seven income tax returns available for the purpose of filing the same by various assessees.  Every year the income tax returns meet changes in its contents as well as in the format. 

This year the CBDT has notified the income tax return for the assessment year 2023-24 vide Notification No. 04/2023 dated 10.02.2023 and 05/2023 dated 14.02.2023.  These forms came into effect from 01.04.2023.  The income tax returns have been notified well in advance in order to enable filing of returns from the beginning of the ensuing Assessment Year.  No significant changes have been made to the ITR Forms in comparison to last year’s ITR Forms.  Only the bare minimum changes necessitated due to amendments in the Income-tax Act, 1961 have been made.  The notified ITR Forms will be available on the Department’s website at www.incometaxindia.gov.in. 

ITR - 1

The ITR - 1 form is otherwise called as SAHAJ.  This return is to be filed by individuals being a resident, other than not ordinarily resident and where the total income includes income chargeable to income tax, under the head-

• ‘Salaries’ or income in the nature of family pension as defined in the Explanation to clause (iia) of section 57; or
•  ‘Income from house property’, where assessee does not own more than one house property and does not have any brought forward loss or loss to be carried forward under the head; or
• ‘Income from other sources’, except winnings from lottery or income from race horses and does not have any loss under the head.

Filing this return shall not apply to a person who,-

• has assets (including financial interest in any entity) located outside India-

• has signing authority in any account located outside India;
• has income from any source outside India;
• has income to be apportioned in accordance with provisions of section 5A;
• has claimed deduction under section 57, other than deduction claimed under clause (iia) thereof;
•  is a director in any company;
• has held any unlisted equity share at any time during the previous year;
• is assessable for the whole or any part of the income on which tax has been deducted at source in the hands of a person other than the assessee;

•  has claimed any relief of tax under sections 90 or 90A or deduction of tax under section 91; 
• has agricultural income, exceeding Rs.5000/-;
• has total income, exceeding Rs.50 lakhs;
• has income taxable under section 115BBDA; 
• has income of the nature referred to in section 115BBE;
• is a person in whose case tax has been deducted under section 194N; or
• is a person in whose case payment or deduction of tax has been deferred under sub-section (2) of section 191 or sub-section (1C) of section 192.

The new changes incorporated in the new form are-

•  Income from retirement benefits account maintained in a notified country under Section 89A.
• Income from retirement benefits account maintained in a country other than notified country under Section 89A.

The assessee may opt for old tax regime which allows deductions under various sections of the Act as exempted income or the new tax region which has the reduced rate of tax than that of the old tax regime but without any exemptions.

ITR - 2

This return is to be filed by individuals (not being individuals who are liable to file ITR - 1 return) and Hindu Undivided Family not having income from profits and gains of business or profession.

ITR - 3

This return is to be filed by individuals and Hindu Undivided Family having income from profits and business or gain or business.

ITR - 4

This return is also called as SUGAM.  This return is to be filed by the individuals, Hindu Undivided Family and firms other than LLP being a resident having a total income up to Rs.50 lakhs and having income from business and profession which is computed under-

• Section 44AD - Special provision for computing profits and gains of business on presumptive basis;
• Section 44ADA - Special provision for computing profits and gains of business on presumptive basis;
• Section 44AE - Special provision for computing profits and gains of business of plying, hiring or leasing goods carriages.

This form cannot be filed by an individual who is either Director in a company or has invested in unlisted equity shares or if income tax is deferred on ESOP or has agricultural income more than Rs.5000/-.

This will not be applicable to a person who-

• has assets (including financial interest in any entity) located outside India-

• has signing authority in any account located outside India;
• has income from any source outside India;
• has income to be apportioned in accordance with provisions of section 5A;
• is a director in any company;
• has held any unlisted equity share at any time during the previous year;
•  has total income, exceeding fifty lakh rupees;
• owns more than one house property, the income of which is chargeable under the head “Income from house property”;
•  has any brought forward loss or loss to be carried forward under any head of income;
• is assessable for the whole or any part of the income on which tax has been deducted at source in the hands of a person other than the assesse;

• has claimed any relief of tax under sections 90 or 90A or deduction of tax under section 91
• has agricultural income, exceeding five thousand rupees;
• has income taxable under section 115BBDA;
• has income of the nature referred to in section 115BBE;
• has income of the nature specified in clause (vi) of sub-section (2) of section 17 on which tax is payable or deductible, as the case may be, under sub-section (2) of section 191 or sub-section (1C) of section 192;

ITR - 5

This return is to be filed by persons other than-

• Individual;
• Hindu Undivided Family;
• Company;
• Person filing form ITR - 7.

ITR - 6

In the case of a company not being a company to which requires filing ITR - 7 shall be in Form No. ITR - 6 and be verified in the manner indicated therein;

ITR - 7

This return is to be filed by the persons including companies required to furnish returns under-

• Section 139 (4A) - trusts; or
• Section 139 (4B) - political parties; or
• Section 139 (4C) - research association, news agency, mutual fund, securitization trust etc.; or
• Section 139 (4D) - Every University, College and other educational institutions.

ITR - V

This form is a verification form.  Where the data of the Return of Income in Forms SAHAJ (ITR-1), ITR-2, ITR-3, SUGAM (ITR-4), ITR-5, ITR-7 filed but NOT verified electronically. 

Acknowledgement

Where the data of the Return of Income in Forms SAHAJ (ITR-1), ITR-2, ITR-3, SUGAM (ITR-4), ITR-5, ITR-7 filed and verified. 

Attachment

Any of the above return shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax, if any, claimed to have been deducted or collected at source or the advance tax or tax on self-assessment, if any, claimed to have been paid or any document or copy of any account or form or report of audit required to be attached with the return of income under any of the provisions of the Act.

Where an assessee is required to furnish a report of audit specified under-

•  sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10,
•  section 10A, 
•  section 10AA,
• clause (b) of sub-section (1) of section 12A, 
• section 44AB, 
• section 44DA, 
• section 50B,
• section 80-IA, 
• section 80-IB, 
• section 80-IC, 
• section 80-ID, 
• section 80JJAA, 
• section 80LA, 
• section 92E, 
• section 115JB,
• section 115JC; or
• section 115VW; or
• to give a notice under clause (a) of sub-section (2) of section 11] of the Act,

he shall furnish the same electronically.

Manner of furnishing the return

Any return may be filed in any of the following ways-

• Electronically under digital signature;
• Transmitting the data electronically in the return under electronic verification code; 
• Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V;
• Paper form.

In respect of all companies return is to be filed electronically under digital signature.  No other mode is applicable to the Companies.

In respect of individuals who attains the age of 80 years they may opt to file return in any of the four modes.

In all other cases the return may be filed in any of the first three modes.

New compliance

Now the income tax department is asking for complete details of Chartered Accountant, TRP or professional who filed the income tax return. The Department is also asking for confirmation whether assessee has submitted documentary evidence for claiming deduction and signed the return himself or not.