ITR Form 1 can be filed by an individual having income up to ₹50 lakh and who receives income from salary, one house property/other sources (interest etc).
ITR-2 is filed by people having income above ₹50 lakh, and having income from residential property
ITR-3 by people having income as profits from business/ profession,
ITR Form 4 are simpler forms that cater to a large number of small and medium taxpayers.
ITR-5 is filed by LLPs and businesses
ITR- 6 is filed by businesses respectively
ITR-6 is filed by LLPs and businesses.
Changes in the new ITR forms?
1) Taxpayers will be relieved that there are no changes in ITR-1.
2) In the remaining forms a new schedule for reporting Income from Virtual Digital Assets has been included under the head Capital Gains.
3) This new schedule requires taxpayers to report the date of acquisition, date of transfer as well as cost of acquisition and the proceeds received on sale of VDAs. Income from VDA must be reported quarterly.
“Tax provisions for taxation of VDAs was introduced from FY 2022-23 hence the addition of new schedule is in line with the expectation,” Deloitte India Partner Saraswathi Kasturirangan said
4) Besides the above, the forms have been amended to include additional questions relating to selection of the new tax regime.
5) The form requires the taxpayer to report whether the filer has opted for the new regime in the last assessment year, and also select the assessment year in which it was opted.
6) Additionally, another question has been inserted asking whether taxpayers have opted out of New Regime in any of the previous year and is also expecting the taxpayer to mention the 10IE details for both selections.
