New Income Tax Return (ITR) Forms for AY 2023-24

The Central Board of Direct Taxes (CBDT) announced the new Income Tax Return (ITR) forms for the Assessment Year (AY) 2023-24. These forms include ITR-1 Sahaj, ITR-2, ITR-3, ITR-4 Sugam, ITR-5, ITR-6, and ITR-7. CBDT introduced only minimal changes that are required by amendments to the Income-tax Act, 1961. Through this CBDT aims to facilitate taxpayers and improve the ease of filing ITR.

ITR Forms and their eligibility

Form ITR-1 Sahaj:

ITR-1 Sahaj is designed for resident individuals (excluding those who are not ordinarily residents) with a total income of up to Rs. 50 lakh. It is suitable for individuals earning income from salaries, one house property, other sources (such as interest), and agricultural income up to Rs. 5,000. However, individuals who are directors of a company, invested in unlisted equity shares, subject to TDS under section 194N, or have deferred income tax on ESOP are not eligible to use this form.

Form ITR-2:

ITR-2 is applicable to individuals and Hindu Undivided Families (HUFs) who do not derive income from business or profession profits and gains. Individuals falling under this category can utilize ITR-2 to file their returns.

Form ITR-3:

ITR-3 is not meant for individuals and HUFs with income from the profits and gains of a business or profession. It is important to choose the appropriate form based on the source of income to ensure accurate filing.

Form ITR-4 Sugam:

ITR-4 Sugam is designed for resident individuals, HUFs, and firms (excluding LLPs) with a total income of up to Rs. 50 lakh, including income from business and profession. This form is specifically for those whose income is computed under sections 44AD, 44ADA, or 44AE. Similar to ITR-1, certain individuals are not eligible to use ITR-4 Sugam if they are directors of a company, have investments in unlisted equity shares, have deferred income tax on ESOP, or possess agricultural income exceeding Rs. 5,000.

Form ITR-5:

ITR-5 is applicable to individuals other than individuals themselves, HUFs, companies, and individuals filing Form ITR-7. This form caters to a diverse range of entities, including partnership firms and LLPs.

Form ITR-6:

ITR-6 is meant for companies that do not qualify for exemption under Section 11 of the Income Tax Act, 1961. Companies claiming exemption under Section 11 should file their returns using Form ITR-7.

Form ITR-7:

ITR-7 is specifically designed for entities such as section 25 or section 8 companies, which are required to file their income tax returns under sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act. It is important to note that companies formed for charitable purposes and claiming exemption under section 11 must file their returns using Form ITR-7.

Form ITR-V

ITR-V is used in cases where the data of the Return of Income in Forms ITR-1 Sahaj, ITR-2, ITR-3, ITR-4 Sugam, ITR-5, and ITR-7 is filed but not e-verified (i.e., not verified electronically)

Conclusion

The newly notified ITR forms for AY 2023-24 by the CBDT aim to simplify the income tax return filing process for taxpayers. While there are no significant changes from the previous year's forms, it is essential to select the appropriate form based on the source and nature of income to ensure accurate and compliant filing.