As the deadline for filing income tax returns for the financial year 2022-23 approaches on July 31, 2023, it is crucial to be aware of the latest updates to avoid penalties.
You can file your return through the official website of the Income Tax Department, but this year, several changes have been introduced compared to the previous year.
Let’s take a quick look at the modifications related to the ITR form.
Income from Virtual Digital Assets (VDA)
Starting April 1, 2022, the Income Tax Act has provisions to tax income generated from virtual digital assets (VDA).
Transactions related to cryptocurrencies will attract TDS under section 194S.
The ITR form has been revised to include information about income from VDA, such as the purchase date, transfer date, cost, and sale proceeds.
ARN Details for Claiming 80G
Donors who are eligible for deductions under section 80G for donations made during the financial year 2022-23 must now provide the ARN (Application Reference Number) of the donation in the ITR form.
This requirement applies to donations where a 50% deduction is allowed.
TCS and Relief under Section 89A
Taxpayers can claim Tax Collection at Source (TCS) against their payable income tax.
Additionally, if a taxpayer has claimed relief under section 89A and subsequently ceases to be a resident, they must provide details of the taxable income associated with that relief in the ITR form.
Foreign Institutional Investor (FII) Information
For FY 2022-23, more information needs to be provided in the ITR form, such as balance sheet details for ITR-3, and it is mandatory for registered taxpayers categorized as Foreign Institutional Investors (FII) to share their SEBI registration number.
Disclosure on Intraday Trading
The newly introduced ‘Trading Account’ section in the ITR form requires reporting of turnover and income from intraday trading.
Before filing your ITR this year, make sure to familiarize yourself with these changes.
If any of these updates are applicable to you, remember to include the relevant information while filing your income tax return.
Stay informed and ensure a smooth and hassle-free tax filing process.
