Important Updates for Taxpayers: 5 Changes to Know Before Filing Income Tax Return (ITR)

The Income Tax Department has introduced several changes and updates that taxpayers need to be aware of before filing their Income Tax Return (ITR) this year.

Staying updated with the latest information is crucial to ensure a seamless and error-free filing process and avoid potential problems in the future.

1. Income from Digital Currency: Income earned from the transfer of digital currency, such as cryptocurrencies, will now be taxed at a rate of 30 percent, along with applicable surcharge and cess. It’s important to note that no deductions can be claimed against this income. Taxpayers cannot file ITR-1 or ITR-4 for such income and must use the ITR-2 or ITR-3 forms.
2. Optional Tax Regime: Taxpayers now have the option to choose the new tax regime under Section 115BAC. In the recent budget announcement for the year 2023, Finance Minister Nirmala Sitharaman provided relief to taxpayers under the new tax regime. However, no changes were made to the old tax regime by the government.
3. Claiming Deduction under Section 80G: To claim a deduction under Section 80G, taxpayers must have the donation receipt and donation certificate in Form 10BE. The taxpayer needs to provide details of their donations in the applicable “Schedule 80G” in the ITR form, ensuring that the information is entered correctly in the designated table. A new column has been added to “Table D” in the current financial year.
4. Intraday Trading Turnover Information: Taxpayers involved in intraday trading must now provide information about their profits or losses in a specific section called “Part-A Trading Account” in the ITR form. Details such as turnover from intraday trading and income derived from it need to be provided accurately.
5. Claiming Section 89A Relief: Section 89A provides relief from taxes on income from retirement benefit accounts held in specified countries. If a taxpayer has claimed such relief, they must provide correct information in the salary schedule of the ITR form.

Staying updated with these changes and incorporating them correctly in your ITR will help ensure a smooth and accurate filing process.