New ITR Forms released for AY 2023-24 | What Has Changed?

This document covers

1. What are the changes to ITR Forms for AY 2023-24?
2. When to choose ITR-1
3. When to choose ITR-2
4. When to choose ITR-3
5. When to choose ITR-4

1. What are the changes to ITR Forms for AY 2023-24?

1. Salaries:
   There is a new disclosure for the income from retirement benefit account under schedule salary. Income taxable during the previous year on which relief u/s 89A was claimed in any of the earlier previous years should be reported
2. Other Sources:
   If the retirement benefit account is treated as other income, there is a new disclosure requirement under Other Sources. Income taxable during the previous year on which relief u/s 89A was claimed in any of the earlier previous years should be reported
3. Old / New Tax Regime:
   There is a new questionnaire in ITR 3 and ITR 4 that whether you have opted out of New Tax Regime in earlier years
4. Cryptos / VDA:
   New VDA schedule has been incorporated and It is interesting to see that the profits from VDS needs to be reported under corresponding schedules like Business and Capital gains where as VDA is taxable @ 30%
5. Cryptos / VDA:
   If VDA is treated as capital gains, we need to provide quarterly breakup under Capital Gains Schedule
6. Cryptos / VDA:
   Every transaction of VDA needs to be reported along with Date of sale and date of purchase
7. Additional Disclosure to safeguard:
   If you are a foreign institutional investors (FII/FPI), SEBI registration number needs to be provided
8. Additional Disclosure:
   There is a slight change in Balance sheet reporting. As per New ITR forms released, Advances received from persons specified in Sec 40A(2)(b) of income tax act and other persons needs to be reported under Advances in Source of Funds
9. Additional Disclosure:
   As per new income tax forms released, turnover and income from Intraday trading needs to be reported under Trading Account. These are new fields introduced.

2. When to choose ITR-1

1. For Individuals being a resident (other than not ordinarily resident) having a total income up to Rs. 50 Lakh
2. having Income from Salaries, one house property (single ownership), interest income, Family pension income etc.
3. Agricultural income up to Rs. 5000/-
4. Not a director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head " from House Property".
5. Do not use this form if you have a sale of Cryptos / VDAs

3. When to choose ITR-2

1. For Individuals, HUF being a resident, RNOR or NRI
2. Having Income above Rs 50 lakhs
3. Having Multiple Properties including the properties outside India
4. Agriculture Income of more than Rs 5000
5. Being a Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head "Income from House Property", "Income from Capital Gains".
6. Have sold a property or shares or mutual funds.
7. Having foreign assets
8. NEW   Profit or loss derived from the sale of Cryptos / VDAs, excluding crypto derivatives (F&Os)
9. NEW   Gifts received in the form of VDAs / Cryptos needs to be reported under ITR2/3 (based on applicability)

4. When to choose ITR-3

1. For Individuals, HUF being a resident, RNOR or NRI having Salary, House property, other sources, foreign income, Capital Gain and Business or Professional Income
2. Having Income above Rs 50 lakhs
3. Having Multiple Properties including the properties outside India
4. Agriculture Income of more than Rs 5000
5. Being a Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head "Income from House Property", "Income from Capital Gains".
6. Have sold a property or shares or mutual funds
7. Having foreign Assets
8. Being a Partner in a Firm/LLP
9. NEW  Profit or loss derived from the sale of Cryptos / VDAs, including crypto derivatives (F&Os)
10. NEW  Gifts received in the form of VDAs / Cryptos needs to be reported under ITR2/3 (based on applicability)

5. When to choose ITR-4

1. For Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 Lakh
2. having one house property (single ownership)
3. having income from business and profession which is computed under sections 44AD, 44ADA or 44AE or Interest Income, Family pension etc
4. Agricultural income up to Rs. 5000/-
5. Not a Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head "Income from House Property".
6. Do not use this form if you have a sale of Cryptos / VDAs