28 days left for FY 2022-23 ITR filing, check new form changes

The tax return forms have undergone modifications to accommodate necessary disclosures regarding income from Virtual Digital Assets (VDAs). Taxpayers are now required to provide details about their VDA income and specify whether it falls under the category of business income or capital gains. These details must be included under the relevant head of income in the tax return forms. Additionally, taxpayers are advised to keep relevant information handy, such as the date of acquisition, date of transfer, cost of acquisition, sale proceeds, and other related details for smooth filing of tax returns in case of income from cryptocurrencies during the financial year 2022-23.

Since April 1, 2022, the Income Tax Act has introduced specific provisions for taxing income related to Virtual Digital Assets. Under section 194S, Tax Deducted at Source (TDS) liability applies to payments received for crypto transactions. To ensure compliance, taxpayers are encouraged to verify that income from digital assets subject to TDS under section 194S is included in their return of income by referring to Form 26AS and AIS.

Furthermore, if any donations are eligible for deduction under Section 80G during FY 2022-23, taxpayers are required to provide the Donation Reference Number (ARN) in the Income Tax Return (ITR) forms. This applies to donations made to organizations where a 50 percent deduction is allowed, subject to qualifying thresholds.

Taxpayers have the option to claim Tax Collected at Source (TCS) as a credit against their income tax liability. Additionally, if individuals have previously claimed relief under Section 89A and later become non-residents, the ITR forms now require them to provide details of taxable income from such relief.

For Indian residents earning income from foreign retirement benefits accounts, tax deferral until withdrawal is available. Section 89A provides tax relief on income from retirement benefit accounts held in specific countries specified by the Income Tax (I-T) department. Taxpayers claiming relief under Section 89A need to furnish relevant details in the Schedule Salary section of the ITR forms.

Other changes introduced in the ITR forms for FY 2022-23 include the requirement to provide additional information about advances in the Balance Sheet for ITR-3 and the disclosure of the SEBI registration number for taxpayers who are Foreign Institutional Investors (FIIs) or Foreign Portfolio Investors (FPIs) registered with SEBI.

Moreover, the new ITR forms feature a dedicated section called 'Trading Account' where taxpayers should report turnover and income from intraday trading.

Taxpayers are advised to familiarize themselves with these changes and ensure accurate and timely filing of their income tax returns before the deadline of July 31, 2023, for individuals whose accounts do not require auditing.