IT division permits offline format of ITR-1 and ITR-4 for AY 2023-24: Who is required to file?

What are ITR 1 & 4 varieties?

Gopal Bohra, Partner, N.A. Shah Associates said CBDT has launched excel utilities for submitting ITR 1 & 4, for AY 2023-24 on twenty fifth April, 2023. ITR 1 (Sahaj), one of the best of all differing types, will likely be filed by a resident explicit particular person, whose full income does not exceed Rs. 50 lakh and earns income from wage, 1 residence property and completely different sources whereas, ITR 4 (Sugam) will likely be filed by resident individuals having full income upto Rs. 50 lacs and having income from enterprise/ profession computed on presumptive basis u/s 44AD, 44ADA & 44AE.

Nikhil Vikamsey, Partner Alpha Capital said the Income Tax Department has launched the excel utilities for ITR 1 and ITR 4 lots prematurely and method sooner than last quarter’s TDS value deadline. The IT Department is however to launch Java utilities that will work in most pc programs nevertheless are anticipated to launch shortly,

Just a number of changes have been made to the ITR-1 and 4 varieties to alter between outdated vs new tax-regime, additional circumstances for submitting income tax returns equal to turnover from enterprise exceeding ₹60 lakh throughout the earlier fiscal yr, turnover from profession exceeding ₹10 lakh throughout the earlier fiscal yr, and the TDS deducted throughout the earlier fiscal yr, which might be launched in ITR 1 and ITR 4

Overall, we predict that quite a lot of the tax base is predicted to prepare and file taxes throughout the months of May and June compared with earlier years.

How offline utility for the ITR Forms 1 and 4 will revenue taxpayers?

Dr. Suresh Surana, Founder, RSM India said considering that the Income tax division has launched the excel utilities for Income tax varieties (ITR 1 and ITR 4) correctly sooner than prematurely, it might permit in simple facilitation of furnishing of return by the taxpayers.

A taxpayer can file the related income tax returns each immediately on the e-filing portal or by way of offline mode. In offline mode, assessee shall get hold of the excel/ java utilities and after submitting the obligatory income and deduction related income on the utility sort, add the an identical on the income tax e-filing portal. The income tax division yearly releases the offline utility for ITR Forms.

As the division has already launched excel utility for ITR Forms 1 and 4 with respect to financial yr 2022-2023 (AY 2023-24), the Java utilities for the same are anticipated to be launched shortly as correctly.

Filing income tax returns by way of offline mode is no doubt among the finest and useful method of submitting returns as on-line ITR submitting might exposes the taxpayer to the hazard of lack of awareness as a consequence of assorted causes equal to session time out, taxpayers failure to click on on on the Save draft alternative.

To whom ITR 1 and ITR 4 is related

Suresh Surana said the Central Board of Direct Taxes (CBDT) by means of Notification No. 04/2023, dated 10 February 2023, and Notification No. 05/2023, dated 14 February 2023, has notified the Forms for furnishing the income-tax returns for the financial yr 2022-23 (AY 2023-24).

Among all the on the market ITR Forms, ITR-1 and ITR-4 are basically probably the most typically used ITR varieties as a result of the ITR-1, additionally known as Sahaj, is related for resident and ordinarily resident individuals whose full income is upto ₹50 lakh. The sources of income must be wage income, income from one residence property and completely different sources equal to curiosity income, dividend income and agricultural income (not exceeding Rs. 5,000) and so forth. However, it is pertinent to note that ITR-1 cannot be filed by individuals who’re each directors in a company or holding unlisted equity shares and folks whose tax has been deducted u/s 194N of Income Tax Act, 1961(herein after referred to as ‘IT Act’) or have deferred tax obligation for ESOPs obtained from eligible start-up, has launched forward or carried forward loss, and so forth.

The ITR-4 sort, additionally known as Sugam, will be utilized by individuals, HUFs, corporations (except for Limited Liability Partnership corporations), having full income as a lot as ₹50 lakh, and having income from corporations and professions which is computed u/s 44AD, 44ADA, 44AE of IT Act.

However, the an identical cannot be utilized by individuals who’re each directors in a company or have invested in unlisted equity shares or have deferred income tax on ESOPs obtained from eligible start-up, have agricultural income exceeding ₹5,000, any income provide exterior India, and so forth.

CA Viral S Vora, Partner, Vora Vora and Associates (Chartered Accountants) said the Income Tax Department Issues Income Tax Return (ITR) varieties for submitting of returns every fiscal yr. This yr too, the Central Board of Direct Taxes (CBDT) vide Notification No. 04/2023, dated 10 February 2023, and Notification No. 05/2023, dated 14 February 2023, has notified the Forms for furnishing the income-tax returns for the Financial Year 2022-23, much like the Assessment Year 2023-24.

In this regard, the Income Tax Department launched the offline utility for ITR Forms 1 and 4 on 25 April 2023.

ITR-1 is related toResidents (except for not ordinarily residents) explicit particular person taxpayersHaving income from salaries or pension, one residence property, income beneath the highest completely different sources (excluding lotteries, betting, and enjoying nevertheless along with income from retirement revenue accounts maintained exterior India), and agricultural income as a lot as ₹5,000, which together mustn’t exceed ₹50,00,000.ITR-4 is related toWider class of Resident taxpayers, i.e., individuals, HUFs, and Firms (except for LLP)Having income from presumptive enterprise, profession or income from gadgets or carriage which is computed beneath sections 44AD, 44ADA or 44AE, respectively, furthermore the category of income specified beneath ITR-1, which together mustn’t exceed ₹50,00,000.NOTABLE CHANGES 

Just a number of changes have been made to the ITR-1 and 4 varieties to alter between the outdated vs new tax regime, additional circumstances for submitting income tax returns equal to turnover from enterprise exceeding ₹60 lahks throughout the earlier fiscal yr, turnover from profession exceeding ₹10 lahks throughout the earlier fiscal yr, and the TDS deducted throughout the earlier fiscal yr, which might be launched in ITR 1 and ITR 4.

How to acquire ITR 1 & 4?

CA Manish Mishra, Virtual CFO said the Income Tax Department of India has launched offline varieties for Income Tax Return (ITR) 1 and ITR 4 ahead of schedule for the financial yr 2022-23. This will give taxpayers ample time to prepare their tax returns sooner than the due date.

ITR 1 is designed for individuals with an income of as a lot as ₹50 lakh who’ve only one residence property and no capital good factors. The due date for submitting ITR 1 for the financial yr 2022-23 is thirty first July 2023.

On the other hand, ITR 4 is meant for individuals, Hindu Undivided Families (HUFs) and corporations with an entire income of as a lot as ₹50 lakh who’ve opted for the presumptive taxation scheme. The due date for submitting ITR 4 for the financial yr 2022-23 is thirty first October 2023.

The offline varieties will likely be downloaded from the Income Tax e-filing portal. The varieties will be present in every Excel and Java utility codecs, making the tax-filing course of additional accessible and user-friendly.

The early launch of the offline varieties is a constructive switch that is susceptible to make tax-filing a lot much less worrying for taxpayers, giving them further time to prepare and file their returns sooner than the respective due dates.

Changes in new ITR varieties

Vivek Jalan, Partner, Tax Connect Advisory, a multi-disciplinary tax consultancy company said this yr the Government has notified the ITRs lots before March itself and subsequently the taxpayers will get sufficient time to prepare for amendments throughout the returns. However, the returns will likely be filed solely as quickly as the web format to file the an identical will be discovered. This on-line format referred to as “ITR utility”. Excel utility is no doubt one of many utilities. The Excel-based utility for submitting ITR-1 Sahaj and ITR-4 Sugam for AY 2023-24 is obtainable for get hold of from the Income Tax Department’s official website.  These two ITRs are one of the best of ITRs and there is not lots change within the an identical vis-a-vis last yr and presumably the rationale why the CBDT has chosen to make these utilities reside. I’m sure the others will observe swimsuit shortly.

However, there’s one important change in ITR-4 utility which assesses ought to concentrate to.  In the case of the assessee having income from enterprise or profession, the selection to go for the model new Income Tax regime, as quickly as exercised, is allowed to be withdrawn solely as quickly as in a lifetime.  The new ITR varieties search particulars if the assessee has ever opted out of the model new regime in earlier years. If the assessee has opted out, he is required to supply particulars of the Assessment Year by means of which said alternative is opted out, Date of submitting and Acknowledgement number of Form 10-IE. 

The assesses ought to concentrate to this transformation and assure they file accordingly.

How to file IT return?

Suresh Surana, Founder, RSM India said because the model new analysis yr begins, taxpayers may be required to file the related income tax returns for the sooner fiscal yr i.e. FY 2022-23 (AY 2023-24). The last date for submitting income tax returns with respect to AY 2023-24 is thirty first July 2023 for explicit particular person taxpayers, Hindu-undivided family (HUF), Association of people (AOP) and Body of Individuals (BOI), provided their books of accounts won’t be required to be audited. As talked about above in response to question 1, a taxpayer can file income tax returns each immediately on the e-filing portal or by way of offline mode. An overview of such course of with respect to every such methods has been talked about beneath:

Offline mode:

Step 1: In order to file ITR using XML methodology, the assessee may be required to acquire each the excel utility or the Java utility from https://www.incometax.gov.in/

Step 2: Extract the downloaded utility ZIP file and fill the related and compulsory fields of the ITR Form.

Step 3: Validate all the tabs of the ITR sort and calculate the Tax

Step 4: Generate and save the XML file

Step 5: Lastly, the assessee may be required to attach the XML file on the “income tax return” link and validate the same using any of the specified options

(Login to e-filing portal< click on “e-file” menu < click on on on “income tax return” link< select the submission mode as “Upload XML”)

Online mode:

Step 1: Login to https://www.incometax.gov.in/iec/foportal/ using PAN and password

Step 2: Click on “e-file” menu< “Income Tax return” hyperlink< Select the submission mode as “Prepare and submit on-line”

Step 3: Carefully fill out all the applicable and mandatory fields of the ITR form

Step 4: Lastly, choose the appropriate verification option in the “Taxes paid and Verification” tab and submit the form.

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