Application of ITR in Assessment Year -2022-2023

CBDT (Central Board of Direct Taxes) on 30th march 2022 by Notification has informed the Income-tax (Fourth Amendment) Rules, 2022. CBDT informed about five income tax return (ITR) forms for the assessment year 2022-23. In this blog, we will discuss the Application of ITR in Assessment Year -2022-2023 as per the notification.

Income Tax Return (ITR)

ITR (Income Tax Return) is a form in which the taxpayers file information about the income they got and the tax applicable to the income tax department. 

The income tax department has informed 7 various IRT forms like ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7. ITR applicability differs as per the:

• Sources of income of the taxpayer
• The amount of the income they get, and
• On the category of the taxpayer like individuals, HUF, company, etc.

Outline of Income-tax (Fourth Amendment) Rules, 2022

The new ITR forms for the financial year 2022-23 try to find details of:

• more disclosures,
• details of investment in unincorporated entities, and
• income from overseas retirement benefit accounts from taxpayers.

CBDT for the Assessment Year 2022-23 by Income-tax (Fourth Amendment) Rules, 2022 has informed the following ITR Forms:

• SAHAJ ITR-1
• ITR-2
• ITR-3
• SUGAM ITR4
• ITR-5
• ITR-6
• ITR-V
• and ITR- Ack

The notified ITR forms do not contain any major amendments or changes compared to the preceding year except a few to incorporate the changes or amendments made by the Finance Act of the relevant year to incorporate the changes or amendments in the Finance Act of the relevant year

Application of ITR in Assessment Year -2022-2023

Following are the applicability of ITR-forms for Assessment Year -2022-2023 as per the notification CBDT.

ITR Form 1 or SAHAJ  

This form is the same as last year, only the attachment of income from retirement benefits accounts kept in a foreign country for the calculation of net salary is newly added.

Further, it also tries to find details on whether or not the said benefits account was kept in the knowledge of the country under section 89A of the Income Tax Act,1961. However, the taxpayers can also claim relief from taxation as per section 89A on this income

ITR form 2

ITR-2 form applies to HUFs and Individuals who are remunerated and have income from other sources but not from business. In simple words, taxpayers other than the business income category can file this ITR 2 form.

ITR form 3

The taxpayers having income as profits from other businesses or professions can file this form. 

ITR Form 4 or Sugam

Individuals, HUFs, and firms with total income up to Rs 50 lakh and having income from other businesses and professions which is added under sections 44AD, 44ADA, or 44AE of the Income Tax Act, 196, can file this form.

Further, the ITR-4 form is applicable for large business income group taxpayers who can give a convincing figure of their annual turnover in this form.

However, this is not applicable for an individual who is either Director in a company or has invested in unpublished equity shares or if income tax is overdue on ESOP or has agricultural income more than Rs. 5000.

ITR Form 5

A corporate body limited liability partnership (LLP) can file this form.

ITR form 6

This form is applicable for companies registered other than Section 11.

Amendment in Rule 12 – Manner of filing ITR

There is no modification in the manner of filing ITR Forms compared to last year. Central Board of Direct Taxes to incorporate the changes related to ITR forms for the AY 2022-23 has amended rule 12 of the income tax rules, 1962.

Rule 12 of Income Tax Rules, 1962 proposes the manner of filing the income tax return in ITR. The following amendments are for the ITR forms ITR-1 to ITR-6 for the AY 2022-23

• In Rule 12(1), the year ‘2022’ is swapped for the figure ‘2021’ to make the changes applicable for Assessment Year 2022-23.
• In Rule 12(5), the year ‘2021’ is swapped for the figure ‘2020’ to make the ITR forms applicable for the Assessment Year 2021-22 or earlier assessment years which were notified for respective years.

However, the amended rule has come into force from the 1st day of April 2022. Although ITR forms for the AY are notified, no utility on the e-filing portal is yet given for the online filing of the return.

Conclusion

Therefore, it is clear from the above discussion that the Central Board of Direct Taxes to incorporate the changes related to ITR forms for the AY 2022-23 has amended rule 12 of the income tax rules, 1962.