Money9: The last date for filing Income Tax Return (ITR) for the assessment year 2022-23 is July 31. With the new e-filing portal along with the existing Form 26AS, access to Tax Information Summary i.e. TIS and Annual Information Statement i.e. AIS has become easier. This has also made ITR filing easier. As a result Chaitanya is feeling much more relaxed this time than last few years. But there is one thing, which bothers Chaitanya about the ITR form and that is the tedious process of filling the form every year.
So many changes in the new form
The change in the form is aimed at covering different income groups in the tax structure. Around 30 changes have been made in the new ITR form. However, not all of these changes will apply to you. But there are some changes that Chaitanya and you need to know before filing ITR.
ITR-1
First of all let’s talk about ITR-1 i.e. Sahaj..This form is filled by persons with total income up to 50 lakh rupees from sources other than salary, pension, residential property, lottery, but person with income from lottery and agricultural income of more than 5,000 rupees cannot fill this form. Now from this year salary income has to be shown in ITR 1 separately divided into salary, special benefits and allowances. The taxpayer will also have to fill the information of income from retirement benefit accounts in countries like Canada, UK, US and Northern Ireland in the ITR form this year.
A new section 115-BAC has been added to this, According to which if you have opted for the new tax regime then select Yes option in the new ITR form. Option of new tax regime under section 115-BAC, option of section 139 (1) will be valid only till the due date of filing of ITR. If the ITR-1 is filled completely online on the new income tax portal. Most of the information is already filled in then. However, the information already filled should be cross-checked and if any error is noticed, it should be corrected.
Additional information must be provided
Taxpayers will also have to provide additional information this time. This time there have been 9 changes, which you have to keep in mind while filing ITR. In the Nature of Employment drop-down menu, pensioners have to select one of several options. If you are a central government pensioner then select Pensioners – CG, if you are a state government pensioner then select Pensioners – SC, if you are getting pension from a public sector company then select Pensioners – PSU and remaining pensioners select Pensioners – Others, including EPF pension is involved.
You will have to pay tax on the interest earned on contributions of more than Rs 2.5 lakh in any one year to EPF. You have to declare this interest in the ITR form. Failure to do so may also get you a notice from the IT department. This time, while filing ITR, if you have purchased any land or building, it is also necessary to inform about it. If expenditure has been incurred on renovation and improvement of the building then the information has to be given every year. Till now only index cost had to be shown while reporting capital gains. But from this year you have to show original cost along with index cost.
Must show residential status
You need to show your residential status while filing ITR. This year if you are filling ITR-2 or Form-3 you have to select the required option to support the residential states. In it you will get many options, in which you have to show how long you have been staying in India. Not only do you have to disclose that you are abroad, but you also have to show if you have sold any assets outside the country. If you have assets abroad or have earned dividends or interest on any assets from abroad, it is necessary to report the same in ITR Form-2 and Form-3.
Choosing the right form for filing ITR from ITR Form 1 to ITR Form 7 depends on various factors. Like Taxpayer’s source of income, total earnings during the relevant assessment year, Taxpayer’s status etc..If you fill wrong form by mistake then Income Tax Officer can treat Taxpayer’s return as defective under Section 139 (9) of Income Tax Act. The taxpayer will be given an option to correct his mistake within a specified time and re-file the return using the appropriate form.
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