Income Tax Return (ITR) Applicability for AY – 2022-2023

The CBDT has notified new ITR forms for the current assessment year 2022-23 and Financial Year 2021-22 and there are not many new changes. As of now, the due date for filing is July 31, 2022, for taxpayers who are not required to be audited. The other taxpayers will have a filing due date of October 31, 2022. If the taxpayer has entered into a specified domestic or international transaction, the return filing due date is November 30, 2022.

With the amendments in the new Finance Act, some changes have been made to ITR forms:

• Form ITR-1 specifically seeks specific income details for retirement benefits accounts in other countries. The CBDT has notified ‘Canada’, ‘United States of America’, and ‘United Kingdom of Great Britain & Northern Ireland’ for Section 89A. Retirement benefit accounts maintained in a notified country should be added in net salary. Also, the relief amount to be reduced from the taxation needs to be mentioned under the said section.
• PF contributions over Rs 2.5 lakh should be reported in ITR-2 and ITR-3 as “income from other sources.” You must mention the interest accrued on contributions under “Schedule OS- Income from Other Sources”.
• The new tax regime that was opted for in the previous year must be disclosed. In ITR-3, the taxpayer must disclose whether they have chosen to switch or continue with their status under Section 115BAC, while Form 10-IE is filed in FY 2020-21. In addition, the taxpayer can choose to switch back and forth, or opt out of switching completely in FY 2021-22.
• Additional disclosures for capital gains: In ITR-2, ITR-3, ITR-5, and ITR-6 in terms of year-wise data of improvement cost, in any. Also, a separate disclosure of the acquisition cost and indexed acquisition cost.
• A new Schedule: Tax-Deferred on ESOPs has been inserted in ITR-2 and ITR-3. A separate disclosure of ESOPs provided by the eligible startups is required to be disclosed as taxation is deferred to actual sale of these shares.