The following are some of the major changes to the ITR form for the fiscal year 2022-23:
Changes to ITR-1 for the fiscal year 2022-23
While calculating their net salary, this form requires them to provide information about their income from overseas retirement funds.
Changes to ITR-2 for the fiscal year 2022-23
The following changes have been made to ITR-2 for AY 2022-23:
While calculating their net salary, assesses must provide information about income from overseas retirement funds.
- Details such as the amount of tax-deferred in previous years, the date of specified securities, the date of employment termination, the amount of tax payable in the current year, the balance amount of tax-deferred c/f in the following year, and so on should be as per the new section introduced for reporting of the tax-deferred on ESOP received from an eligible start-up under 80IC.
- Separate disclosure is required for interest and dividend income from bonds and GDR obtained in foreign currency that is taxable under Section 115AC.
- The assessor must determine the FMV of capital assets transferred via slum sale and the fair market rate of consideration received or accruing as a result of the transfer via slum sale.
- Assessors must disclose foreign asset details on a calendar year basis, that is, until December 2021, rather than a fiscal year basis, which begins in March.
Changes to ITR-3 for the fiscal year 2022-23
The following changes have been made to ITR-3 for AY 2022-23:
While calculating their net salary, assesses must provide information about income from overseas retirement funds.
- Separate disclosure is required for interest and dividend income from bonds and GDR obtained in foreign currency that is taxable under Section 115AC.
- Details such as the amount of tax-deferred in previous years, the date of specified securities, the date of employment termination, the amount of tax payable in the current year, the balance amount of tax-deferred c/f in the following year, and so on should be as per the new section introduced for reporting of the tax-deferred on ESOP received from an eligible start-up under 80IC.
- The assesses will reveal the details of tax on secondary adjustments under section 92CE (2A), which is the number of primary adjustments on which option was exercised, the amount not repatriated, the amount payable, and the challan payment.
- Assessors must disclose foreign asset details on a calendar year basis, that is, until December 2021, rather than a fiscal year basis, which begins in March.
- The assessor must determine the FMV of capital assets transferred via slum sale and the fair market rate of consideration received or accruing as a result of the transfer via slum sale.
Changes to ITR-4 for the fiscal year 2022-23
The following changes have been made to ITR-4 for AY 2022-23:
While calculating their net salary, assesses must provide information about income from overseas retirement funds.
- The assesses will disclose the aggregate of payments arising from the transaction or transactions during the previous year, as specified in Explanation 2A(a) of Section 9(1)(i) of the Information Technology Act, 2000, as well as the number of users in India, as specified in Explanation 2A(b) of Section 9(1)(i) of the IT Act. This disclosure, however, will be made only if a non-resident person has Special Economic Presence in India.
Changes to ITR-5 for the fiscal year 2022-23
The following changes have been made to ITR-5 for the fiscal year 2022-23:
Separate disclosure is required for interest and dividend income from bonds and GDR obtained in foreign currency that is taxable under Section 115AC.
- The assesses will disclose the aggregate of payments arising from the transaction or transactions during the previous year, as specified in Explanation 2A(a) of Section 9(1)(i) of the Information Technology Act, 2000, as well as the number of users in India, as specified in Explanation 2A(b) of Section 9(1)(i) of the IT Act.
- This disclosure, however, will be made only if a non-resident person has Special Economic Presence in India.
- Assessors must disclose foreign asset details on a schedule year basis, which runs until December 2021, rather than a fiscal year basis, which runs from March to March.
- The assessor must determine the FMV of capital assets transferred via slum sale and the fair market rate of consideration received or accruing as a result of the transfer via slum sale.
- The assesses will reveal the details of tax on secondary adjustments under section 92CE (2A), which is the number of primary adjustments on which option was exercised, the amount not repatriated, the amount payable, and the challan payment.
Changes to ITR-6 for the fiscal year 2022-23
The following changes have been made to ITR-6 for the fiscal year 2022-23:
Separate disclosure is required for interest and dividend income from bonds and GDR obtained in foreign currency that is taxable under Section 115AC.
- The assesses will disclose the aggregate of payments arising from the transaction or transactions during the previous year, as specified in Explanation 2A(a) of Section 9(1)(i) of the Information Technology Act, 2000, as well as the number of users in India, as specified in Explanation 2A(b) of Section 9(1)(i) of the IT Act. This disclosure, however, will be made only if a non-resident person has Special Economic Presence in India.
- The assesse must now disclose investment made in an unincorporated company, such as the entity’s name, type, audit liability, PAN, 92E liability, profit share in the entity, capital balance, and number of shares.
- The assesses will disclose the details of tax on secondary adjustments under section 92CE (2A), which is the number of primary adjustments, option exercised, amount not repatriated, amount payable, and challan payment.
- The assessor must determine the FMV of capital assets transferred via slum sale and the fair market rate of consideration received or accruing as a result of the transfer via slum sale.
- Assessors must disclose foreign asset details on a calendar year basis, that is, until December 2021, rather than a fiscal year basis, which begins in March.
Changes to ITR-7 for the fiscal year 2022-23
The following changes have been made to ITR-7 for the fiscal year 2022-23:
Assessors must disclose foreign asset details on a calendar year basis, that is, until December 2021, rather than a fiscal year basis, which begins in March.
The assessors will also provide information on funds invested on the previous year’s last day.
Conclusion
As a result, the preceding discussion focuses on the major changes in the ITR forms for the fiscal year 2022-23. ITR contains information about an individual’s income and the taxes owed on it during the fiscal year.