Submission of income tax return (ITR): India’s income tax department has announced new ITR forms for the financial year 2022-23, which also seeks information on income from foreign pension accounts from taxpayers. The Central Board of Direct Taxes (CBDT) has in a recent circular announced the new ITR forms from 1 to ITR form 6.
Explain the income tax department’s new announcement; SEBI-registered tax and investment expert Jitendra Solanki said: “CBDT has kept the ITR forms unchanged and therefore there is no change in the ITR application forms and rules.” The rules come into force today, ie. on April 1, 2022.
Solanki explained what these ITR forms from 1 to 6 mean for taxpayers. Here we list it one by one:
ITR Form 1 or SAHAJ: This is for the serving individuals who are paid and have no other income such as long-term capital gain, etc and their annual income is less than ₹50 lakh.
ITR Form 2: This is for those who are paid and have income from another source but not from companies. In other words, non-corporate income taxpayers can submit this ITR 2 form.
ITR for 3: Those with business income would submit this form.
ITR Form 4: This is for income groups for large companies that can give a presumptive figure on their annual turnover in this form.
ITR Form 5: This is for the taxpayers who earn from a partnership.
ITR Form 6: This is for companies that are registered other than section 11.
While the ITR-1 form has been kept largely the same as last year, the new addition to the form was the inclusion of income from a pension account kept in a foreign country for the purpose of calculating net salary.
It also seeks information on whether the said pension account was maintained in a notified country in accordance with section 89A of the IT Act. Taxpayers can also request relief from taxation under section 89A on this income.
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