Income Tax Return: The deadline for filing income tax returns for the financial year 2022-23 is 31st July 2023. It is crucial to file your ITR on time to avoid penalties. You can conveniently file your returns through the official website of the Income Tax Department. However, there have been some changes introduced by the department compared to the previous year.
Though these changes are not major, it's important to familiarize yourself with them if you are planning to file your ITR. Being aware of these updates can be beneficial for you. Let's take a look at the changes related to the income tax return form.
1. Income from Virtual Digital Assets (VDA): The Income Tax Act now includes provisions to tax income generated from virtual digital assets from 1st April 2022. Transactions involving cryptocurrencies will attract TDS under section 194S. The ITR form has been modified to include the necessary disclosures for income from VDA. Taxpayers will need to provide complete details of their income from VDA, including the date of purchase, date of transfer, cost, and sale proceeds.
2. ARN Details for Claiming 80G Deduction: Individuals who made donations during the financial year 2022-23 are eligible for deductions under section 80G. In the ITR form, the ARN number of the donation must be provided. This is applicable for donations where a 50% deduction is allowed.
3. Tax Collection at Source (TCS) and Relief under Section 89A: Taxpayers can claim Tax Collected at Source (TCS) against their income tax liability. Additionally, if a taxpayer has previously claimed relief under section 89A and subsequently becomes a non-resident, they must provide details of taxable income from that relief in the ITR form.
4. Disclosure of Income on 89A Relief: Indian residents have the option to defer tax on income earned from Foreign Retirement Benefit Accounts until withdrawal. Section 89A provides tax relief on such income, and individuals claiming this relief must provide details in the salary section of the ITR form.
5. Foreign Institutional Investor (FII) Information: In the ITR form for FY 2022-23, there are additional requirements, such as providing information in the balance sheet for ITR-3 and sharing the SEBI registration number for taxpayers registered as Foreign Institutional Investors (FII) or Foreign Portfolio Investors (FPI) with SEBI.
6. Disclosure on Intraday Trading: The newly introduced 'Trading Account' section in the ITR form necessitates reporting turnover and income from intraday trading.
Stay updated with these changes while filing your income tax return to ensure compliance with the latest requirements and regulations.
Read more: Income Tax Return: What is defective ITR and how can it make you pay a hefty fine
