ITR Filing: The Income Tax Department has issued ITR Form 1 and 4 for AY 2023-24. Through this, job professionals and small businessmen will be able to file income tax returns.
ITR Filing: If you are employed then this is important news for you. The Income Tax Department has started the facility of Form 1 and 4 for individuals, professionals and small businessmen to file Income Tax Return (ITR) for the financial year 2022-23. The department has written on Twitter that facilities for other income tax returns/forms will be started soon. The department said in response to a person’s tweet, “The facility of filling online ITR 1 and 4 for the assessment year (AY) 2023-24 has been started on the e-filing portal.”
In the case of those whose accounts are not required to be audited for the financial year 2022-23, the last date for filing income tax returns is 31 July. ITR 1 is filed by salaried individuals and other individuals including senior citizens. Whereas, ITR 2 is filled by companies and professionals. This is for units that have opted for presumptive taxation and whose annual income does not exceed Rs.50 lakh.
New tax regime will be default
While filing ITR, remember that this time the new tax regime has been kept in default. Means it will be automatically selected. If you have to file ITR under Old Tax Regime, then you will have to change it yourself. Significantly, there are very limited options for getting tax exemption in the new tax regime. However, income up to Rs 7 lakh has been effectively made tax free. At the same time, the tax exemption limit has not been increased in the old tax regime. But there you can claim tax exemption through various government schemes, investment and other methods.
Dear @Simply_Sense,
ITR 1 and 4 for A.Y. 2023-24 are enabled for filing in online mode at the e-filing portal. Earlier, excel utilities for ITR 1, 2 & 4 for A.Y. 2023-24 had already been enabled. The software/utilities for preparing other ITRs/ Forms will be enabled shortly.…
— Income Tax India (@IncomeTaxIndia) May 23, 2023
Benefits in choosing which regime
According to Archit Gupta, founder of Income Tax Portal Clear, a general answer cannot be given whether the new tax system is better for the income tax payer or the old tax system is correct. He said that the answer depends on the income, investment habit and expenditure of the taxpayer. They say that some will get benefit from the new tax regime and some from the old system.
Then what to do
if your annual salary is within Rs 7.50 lakh, then the new tax regime will be best for you. This is because tax rebate is available on income up to Rs 7 lakh. Along with this, a standard deduction of Rs 50,000 is being available. That is, in total, you will not have to pay any tax on your income up to Rs 7.5 lakh. If the income tax payer chooses the old tax system, then he will have to show investment in different places to get tax exemption. Otherwise his tax of about Rs 52000 will be deducted.
