CBDT has notified new Income Tax Return (ITR) Forms in respect of Assessment Year (AY) 2023-24, i.e. ITR-1 Sahaj, ITR-2, ITR-3, ITR-4 Sugam, ITR-5, ITR-6 and ITR-7, vide Notifications 4/2023 and 5/2023.
According to the CBDT press release, no significant changes have been made in the new ITR Forms applicable for AY 2023-24 in comparison to the ITR Forms applicable for AY 2022-23 notified last year, in order to facilitate taxpayers and improve filing ease. Only the bare minimum changes required by amendments to the Income-tax Act, 1961 have been made in the new ITR forms; however, there are no changes in the manner in which these returns are filed.
The Common ITR Form was released for public comment in November 2022, but it appears that CBDT has postponed implementation until after AY 2023-24.
ITR Forms 1 (Sahaj) and 4 (Sugam) are simpler forms that serve a large number of small and medium-sized taxpayers. A resident individual with an income of up to Rs. 50 lakh from salary, one house property, other sources (interest, etc.), and agricultural income of up to Rs. 5 thousand can file a Sahaj. Individuals, Hindu Undivided Families (HUFs), and firms (other than Limited Liability Partnerships (LLPs)) who are residents and have a total income of up to Rs. 50 lakh and income from business and profession computed under sections 44AD, 44ADA, or 44AE can file Sugam.
Individuals and HUFs who do not have income from business or profession (and are not eligible to file Sahaj) can file ITR Form 2, while those who do have income from business or profession can file ITR Form 3. People other than individuals, HUFs, and companies, such as partnership firms, LLPs, and so on, can file ITR Form 5. Companies other than companies claiming exemption under section 11 can file ITR Form 6. Trusts, political parties, charitable institutions, and so on, can file ITR Form 7.
CBDT Income Tax Notification 4/2023 dt. 10/02/2023: New ITR Forms for AY 2023-24 (ITR 1 Sahaj, 2, 3, 4 Sugam, 5, 6)
CBDT Income Tax Notification 8/2023 dt. 28/02/2023: Corrigendum to Notification 4/2023 for making various modifications in the revised ITR Forms notified for AY 2023-24
G.S.R 91(E).- In exercise of the powers conferred by section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. Short title and commencement.-
(1) These rules may be called the Income-tax (First Amendment) Rules, 2023.
(2) They shall come into force with effect from the 1st day of April, 2023.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 12,-
(a) in sub-rule (1), in the opening portion, for the figures “2022”, the figures “2023” shall be substituted.
(b) in sub-rule (5), for the figures “2021”, the figures “2022” shall be substituted.
3. In the principal rules, in Appendix-II, for Forms ITR-1 SAHAJ, ITR-2, ITR-3, ITR-4 SUGAM, ITR-5, ITR-6, ITR-V and Indian Income Tax Return Acknowledgement, the following Forms shall, respectively, be substituted, namely:- (please refer above attachment for detailed formats of new ITR Forms)
[F. No. 370142/51/2022-TPL]
Note : The principal rules were published vide Notification S.O. 969 (E), dated the 26th March, 1962 and last amended vide Notification G.S.R. 769(E), dated the 7th October, 2022.
CBDT Income Tax Notification 5/2023 dt. 14/02/2023: New Income Tax Return Form ITR-7 for AY 2023-24
G.S.R 95(E).- In exercise of the powers conferred by section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. Short title and commencement-
(1) These rules may be called the Income-tax (Second Amendment) Rules, 2023.
(2) They shall come into force with effect from 1st day of April, 2023.
2. In the Income-tax Rules, 1962, in Appendix-II, for Form ITR-7, the following Form shall be substituted, namely:- (please refer above attachment for detailed formats of new form ITR-7)
[F. No. 370142/2/2023-TPL]
Note: The principal rules were published vide notification S.O. 969(E), dated the 26th March, 1962 and last amended vide notification G.S.R. 91(E), dated the 10th February, 2023.
Form ITR-1 Sahaj
ITR-1 SAHAJ is for resident individuals (other than those who are not ordinarily residents) with a total income of up to Rs. 50 lakh. This includes income from salaries, one house property, other sources (interest, etc.), and agricultural income of up to Rs. 5,000.
ITR-1 SAHAJ is not to be used by an individual who is either a director of a company or has invested in unlisted equity shares, or in cases where TDS has been deducted u/s 194N or if income tax is deferred on ESOP.
Form ITR-1 Sahaj AY 2023-24 | Instructions
Form ITR-2
ITR-2 is intended for individuals or Hindu Undivided Families (HUF) who cannot use Form ITR-1 (Sahaj) and do not have any income from business or profession.
Form ITR-2 AY 2023-24 | Instructions
Form ITR-3
ITR-3 is to be used by individuals or Hindu Undivided Families who earn income from business or profession and cannot use Form ITR-1, ITR-2 or ITR-4.
Form ITR-3 AY 2023-24 | Instructions
Form ITR-4 Sugam
ITR-4 SUGAM is meant for resident individuals, HUFs, and firms (other than LLPs) with total income up to Rs. 50 lakh, including income from business and profession, which is computed under Sections 44AD, 44ADA, or 44AE.
ITR-4 SUGAM is not to be used by an individual who is either a director of a company or has invested in unlisted equity shares, if income tax is deferred on an ESOP, or who has agricultural income greater than Rs. 5,000.
Form ITR-4 Sugam AY 2023-24 | Instructions
Form ITR-5
This form can be used by various entities such as individuals, firms, Limited Liability Partnerships (LLPs), Associations of Persons (AOPs), Bodies of Individuals (BOIs), Artificial Juridical Persons (AJPs), local authorities, representative assesses, Primary Agricultural Credit Societies, Co-operative Banks, Cooperative Agricultural and Rural Development Banks, other cooperative societies, societies registered under Societies Registration Act, 1860 or any other state law, trusts (such as Private Trusts/Private Discretionary Trusts), estates of deceased persons or insolvents, business trusts, investment funds and any other AOP/BOI.
However, the persons who are required to file their income tax returns under section 139(4A), 139(4B), 139(4C) or 139(4D) should not use this form, i.e. ITR-5 is intended for persons other than individuals, HUFs, companies, etc. who are required to file Form ITR-7.
Form ITR-5 AY 2023-24 | Instructions
Form ITR-6
ITR-6 is meant for companies other than those claiming exemption under Section 11 of the Income Tax Act, 1961.
Form ITR-6 AY 2023-24 | Instructions
Form ITR-7
ITR-7 is meant for persons including section 25 or section 8 companies who are required to furnish their return of income only under sections 139(4A), 139(4B), 139(4C) or 139(4D) of the Income Tax Act.
It may be noted that the companies formed under section 8 or section 25 for charitable purposes and claiming exemption under section 11 must file their returns in Form ITR-7 because Form ITR-6 cannot be used.
Form ITR-7 AY 2023-24 | Instructions
Form ITR-V
To be 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).
Form ITR-V AY 2023-24
Form ITR-Acknowledgement AY 2023-24
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It has been a long time since the CBDT published the ITR Forms so early or ahead of schedule. I am unable to recall the last time when they did so. Outstanding advancement!
Early notification by Income Tax Department about the new ITR forms applicable for the Assessment Year 2023–24 would give adequate leverage to all of the stakeholders, including the taxpayers, tax professionals, and the e-filing portal. Even companies that sell or provide software have the opportunity to make use of this additional time in order to begin an early implementation of an Excel utility or third-party software for the purpose of filing ITRs.
Lots of improvement in the functioning of the Income Tax Department. The early release of ITR forms helps all tax payers to organise well. The department has also refunded Income Tax where ever applicable, very very expeditiously. Kudos!
There appears to be an inadvertent error unless something has changed wrt to ITR 3 where it says that ITR 3 is NOT to be used by … see below?
“”ITR-3 is not to be used by individuals and HUFs with income from the profits and gains of a business or profession”
Grateful for your feedback. Error rectified, the word ‘NOT’ removed.