Change in ITR Forms in F.Y. 2023-24

1. Changes in ITR 3 Form for FY 2023-24

ITR-3 Form Revisions

• FPI/FII: Should reveal the SEBI registration number in their respective schedule.
• Reporting of income from Virtual Digital Assets (VDA)/crypto added under Capital Gains schedule. Likewise, the quarterly breakdown is also required to be provided in the Capital Gain Schedule.
• Advances received from specified individuals and others are to be reported as per section 40A(2)(b) under the “Advance” Category in Source of Fund.
• Turnover and income through intraday trading are to be reported under the ‘Trading Account’ section.
• Section 80U deduction needs information on the nature of the disability, details of filing of Form 10-IA, and its acknowledgement number along with the amount of deduction claimed.

2. Additional Changes Related to ITR Forms for FY 2023-24

• The individual & HUF can verify tax audit reports through an electronic verification code in the case of ITR-3.
• The assessee, filing ITR- 3,5,6 will enter the deadline for the income return filing from the drop-down menu.
• Provide the acknowledgement number for the Audit Report and UDIN (ITR 3,5,6).
• Show the sum subjected to be paid to MSME beyond the mentioned time limit (ITR 3,5,6)
• Provide broad data such as assets acquired/ amount utilised out of CGAS related to the capital gains accounts scheme (ITR 2,3,5 & 6)
• Under Schedule 80GGC, it is mandatory to provide the information for the contribution to political parties such as transaction reference number, eligible amount of contribution, IFSC code etc. (ITR 2,3,5,6).
• Schedule Tax Deferred on ESOP asks for the data as AY, the amount of deferred tax brought forward, the amount of tax liable to get paid in the current financial year, etc. The PAN and DPIIT registration numbers of eligible start-ups need to be shown. (ITR 2,3)
• Schedule OS included the declaration of bonus payment under LIC policies, receipt information of dividends from IFSC units (ITR 2,3,5,6)
• Startups under Section 80-IAC- The schedule asks for the information date of incorporation, nature of business, certificate number obtained from Inter-ministerial Board, First AY-when deduction claimed, and amount of deduction availed for current AY (ITR 5 & 6)
• MSME Registration particulars are needed such as registration status, and registration number as allotted MSME (ITR 5 & 6).

3. Different Kinds of Income Tax Return (ITR) Forms

• ITR 1: For individuals, assessee being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest etc.), and agricultural income up to Rs.5 thousand.
• ITR 2: For Individuals and HUFs not having income from profits and gains of business or profession. The form is to be furnished via people who possess an income exceeding Rs 50 lakh and carrying income from residential property.
• ITR 3: For individuals and HUFs having income from profits and gains of business or profession. All the assessees have income as profits from business/ profession required to file the same.
• ITR 4: For Individuals, HUFs and Firms (other than LLP) being a residents having total income up to Rs.50 lakh and having income from business and profession which is computed under secঞons 44AD, 44ADA or 44AE. Form 4 is an easy form that serves a lot of small and medium taxpayers.
• ITR 5: Partnership firms & LLPs need to file ITR-5 forms.
• ITR 6: This ITR form needs to be filed by companies other than companies claiming exemption under section 11.

Taxcellent assists you in the preparation of tax computation & filing of ITR.