Income Tax Department releases offline ITR 1, ITR 4 forms: Know who should use it and other key details
- April 28, 2023
- CA Chandan Agarwal's Office
Choosing the correct ITR form is crucial while filing the Income Tax Return. Using the wrong ITR form can result in a defective filing, and the tax authorities will send a notice to file a revised ITR
The Income Tax Department has recently released the ITR-1 and ITR-4 offline forms for the financial year 2022-23 (Assessment Year 2023-24). Taxpayers who meet the eligibility criteria for these forms can now access the forms through the Income Tax Department’s website to file their Income Tax Returns (ITR) offline.
“Excel utilities for ITR 1 & 4 for AY 2023-24 have been enabled. Please refer to the live ticker on the e-filing portal: http://incometax.gov.in,” the I-T Department informed taxpayers in a tweet.
Individuals with a total income of up to Rs 50 lakh can use ITR-1, while ITR-4 is for individuals, Hindu Undivided Families (HUFs), and firms earning from businesses. These forms were introduced in February this year along with ITR 2, ITR 3, ITR 5, ITR 6, and ITR 7.
Taxpayers can download the forms, fill them out manually, and submit them offline or fill out the income and deduction-related details and upload them on the Income Tax e-filing portal.
Choosing the correct ITR form is crucial while filing the Income Tax Return. Using the wrong ITR form can result in a defective filing, and the tax authorities will send a notice to file a revised ITR. While ITR-1 and ITR-4 cater to many small and medium taxpayers, those with income from sources such as capital gains, house property, or foreign assets must use other forms like ITR-2 or ITR-3.
It is important to note that most salaried individuals require Form 16 from their employers to file their ITRs. The Form-16 for salaried taxpayers can be obtained from employers.
Finance Minister Nirmala Sitharaman announced in this year’s Budget speech that the new Income Tax regime would act as the default tax regime from April 1, 2023. Taxpayers can select their regime or have the Income Tax calculated according to the new tax regime.
The maximum surcharge rate under the new regime is 25 percent, lower than the maximum surcharge rate under the old regime of 37 percent. Taxpayers under the new regime have to forgo exemptions such as leave travel allowance, house rent allowance, children’s education allowance, interest on housing loans, and deductions on specified investments.
In contrast, under the old regime, more than 70 exclusions and deductions are available, including HRA and LTA, which can lower taxable income and the tax amount to be paid. Section 80C is the most popular deduction under the old regime, under which the taxpayers can claim exemptions up to Rs 1.5 lakh.
Taxpayers should carefully evaluate their options before choosing the best suitable regime. The deadline for filing ITR for the financial year 2022-23 for taxpayers, who don’t need a financial audit, is July 31, 2023.
Source: https://www.cnbctv18.com/personal-finance/income-tax-department-releases-offline-itr-1-itr-4-forms-know-who-should-use-it-and-other-key-details-16517421.htm
