5 Important Changes to Income Tax Return Filing for FY 2022-23

The deadline for filing your income tax return for the financial year 2022-23 is 31st July 2023.

It is crucial to file your ITR on time to avoid penalties.

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You can conveniently file your return through the official website of the Income Tax Department.

However, it’s important to note that some changes have been introduced this year compared to the previous year.

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Here’s a quick overview of the changes related to the ITR form.

Changes to Be Aware of When Filing Your Income Tax Return

To ensure a smooth filing process, it is essential to be aware of the changes in the ITR form.

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Let’s take a closer look at these changes and understand their implications.

Income from Virtual Digital Assets (VDA)

Starting from April 1, 2022, the Income Tax Act includes provisions for taxing income from virtual digital assets.

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Transactions related to cryptocurrency will be subject to TDS under section 194S. The ITR form for reporting income from VDA has been updated.

Taxpayers will need to provide details such as the date of purchase, date of transfer, cost, and sale proceeds.


ARN Details Required for Claiming 80G Deduction

If you have made donations during the financial year 2022-23 and are eligible for a deduction under section 80G, you must provide the ARN (Acknowledgement 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: Key Information for Taxpayers

Taxpayers can now claim Tax Collection at Source (TCS) against their payable income tax.

Additionally, if a taxpayer has claimed relief under section 89A and subsequently becomes a non-resident, they must disclose details of taxable income from that relief in the ITR form.

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Foreign Institutional Investor (FII) Information: New Requirements for ITR Form

For the financial year 2022-23, there are additional reporting requirements in the ITR form, specifically related to Foreign Institutional Investors (FII).

Taxpayers filing ITR-3 are mandated to provide their balance sheet information, and registered taxpayers must share their SEBI registration number.

Intraday Trading Disclosure: A Must-Know for Taxpayers

The newly introduced ‘Trading Account’ section in the ITR form now requires reporting of turnover and income from intraday trading.

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It is crucial to be aware of this requirement before filing your ITR. Keep these changes in mind to ensure accurate reporting.


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