Arjun (Fictional Character): Krishna, new ITR forms have been notified by CBDT on 10/02/2023 and 14/02/2023, what is your view on that?
Krishna (Fictional Character): Arjuna, Every Year, CBDT notifies new ITR-1 to ITR-7which are consequential to the amendments made in the Finance Act and Other Laws, and taxpayer should know about the changes in ITR forms as compared to previous year forms.
Arjun (Fictional Character): Krishna, what is the impact of new Schedule VDA inserted in the ITR Forms?
Krishna (Fictional Character): Arjuna, in the new ITR forms a new Schedule VDA [Virtual Digital Assets for E.g. Cryptocurrency, NFT’s etc.] has been added where details like Date of acquisition, Date of transfer, Head under which income is to be taxed, Cost of acquisition, Consideration received, and Net Income received from transfer of Virtual Digital Assets is required to be disclosed. The above change has been brought after the government has decided to Tax VDA’s at 30% tax rate and applicable to all taxpayers dealing with Virtual Digital Assets.
Arjun (Fictional Character): Krishna, what are the changes in ITR forms for disclosure of TCS credit?
Krishna (Fictional Character): Arjuna, a new Change has been made in the table of TCS [Tax Collection at Source] where an option has been provided to taxpayer to disclose the details of TCS credit which is collected in hands of the other person but the same is claimed by the Taxpayer in his ITR. This change shall be applicable to all assesses whose TCS has been collected and it helps to correct errors and Mis-match in TCS.
Arjun (Fictional Character): Krishna, which additional information is asked relating to new tax regime?
Krishna (Fictional Character): Arjuna, a new questionnaire in ITR-3 and ITR-4 is inserted which enquires whether you have opted out of the New Tax Regime in the earlier years. This questionnaire is added to check whether the taxpayer is eligible to opt for the New Tax Regime. This change is applicable to Individuals and HUF’s.
Arjun (Fictional Character): Krishna, which additional disclosures are required for taxpayer dealing in Intraday Trading?
Krishna (Fictional Character): Arjuna, a new option has been added in the ITR forms where the taxpayer can disclose separately the Turnover and Income from Intraday Trading Activities. This change is applicable for taxpayers filing return under Form ITR-3.This change has been brought as many individual taxpayers are doing this Intraday trading by opening Demat account on platforms like Zerodha, Upstox Etc.
Arjun (Fictional Character): Krishna, what are the changes for taxpayer filing return u/s 153C?
Krishna (Fictional Character): Arjuna, in the New ITR form a new option for section 153C has been added where the taxpayer can select the same if return is filed in response to proceedings under section 153C (for e.g., Search, Survey). This option is available for all assesses undergoing Proceedings under 153C of the Income Tax act.
Arjun (Fictional Character): Krishna, whether the CBDT has notified any details of the Common ITR Form?
Krishna (Fictional Character): Arjuna, CBDT has not released the Form for Common ITR. In November 2022the Central Board of Direct Taxes (CBDT) proposed the introduction of a common income tax return (ITR) form. The common ITR form is supposed to merge all the ITR forms except ITR-7. But for FY 2022-23 the CBDT has notified all the Forms from ITR 1 to ITR 7 except Common ITR. Hence question for applicability of Common ITR for FY 2022-23 does not arise now.
Arjun (Fictional Character): Krishna, what should the taxpayer learn from this?
Krishna (Fictional Character): Arjuna, by notifying ITR Forms in Advance the department is trying to give time to Taxpayers to understand and collect the details to be submitted in the ITR. Last Year Department has shown that they are not in favour of Due Date Extension, hence the Taxpayer and Tax Professionals should prepare themselves well before the due date of Income Tax Return filing to avoid any last-minute problems.
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