IT department enables offline format of ITR-1 and ITR-4 for AY 2023-24: Who needs to file?

What are ITR 1 and 4 forms?

Gopal Bohra, partner, NA Shah Associates, said the CBDT has released Excel utilities for filing ITR 1 and 4 for AY 2023-24 on April 25, 2023. ITR 1 (Sahaj), the simplest of all other forms, can be filed by one. Resident individual, whose total income does not exceed Rs. 50 lakh and earns income from salary, 1 house property and other sources while ITR 4 (Sugam) can be filed by resident individuals having total income up to Rs. 50 lakh and income from business/profession is computed on presumptive basis under section 44AD, 44ADA and 44AE.

Nikhil Vikamse, Partner Alpha Capital said that the Income Tax Department has released the Excel utilities for ITR 1 and ITR 4 much before the TDS payment deadline for the previous quarter. IT department has not yet released the java utilities which can work in most of the computers but it is expected to be released soon,

Some changes have been made in ITR-1 and 4 forms to switch between the old vs new tax-regime, additional conditions for filing income tax returns such as turnover from business 60 lakhs in the last financial year, turnover more than profession 10 lakhs in the previous financial year, and TDS deducted in the previous financial year, which are furnished in ITR 1 and ITR 4

Overall, we anticipate that a greater proportion of the tax base than in prior years is expected to prepare and file taxes in the months of May and June.

How will the offline utility for ITR Form 1 and 4 benefit taxpayers?

Dr. Suresh Surana, Founder, RSM India said that the Income Tax Department has introduced Excel utilities for income tax forms (ITR 1 and ITR 4) much earlier, which will make it easier for taxpayers to file their returns. ,

A taxpayer can file the applicable Income Tax Return either directly on the e-filing portal or through offline mode. In offline mode, the assessee shall download the Excel/Java utilities and upload the same on the Income Tax e-filing portal, after entering the required income and deductible income on the utility form. Income tax department releases offline utility for ITR form every year.

As the department has already released Excel utility for ITR Form 1 & 4 in respect of Financial Year 2022-2023 (Age 2023-24), Java utilities for the same are also expected to be released soon.

Filing income tax return through offline mode is the most efficient and convenient way of filing return as online ITR filing may expose the taxpayer to the risk of loss of data due to various reasons such as session timeout, clicks by taxpayers etc. Failure in the Save Draft option.

To whom ITR 1 and ITR 4 is applicable

Suresh Surana said that the Central Board of Direct Taxes (CBDT) vide Notification No. 04/2023, dated 10th February 2023 and Notification No. 05/2023, dated 14th February 2023, has notified the forms for furnishing Income Tax Returns. Financial Year 2022-23 (Age 2023-24).

Among all the available ITR forms, ITR-1 and ITR-4 are the most commonly used ITR forms, as ITR-1, also known as SAHAJ, is applicable to resident and ordinarily resident individuals whose total income is up to 50 lakhs. The sources of income should be salary income, income from one house property and other sources such as interest income, dividend income and agricultural income (not exceeding Rs. 5,000) etc. However, it is pertinent to note that ITR-1 cannot be filed by persons who are either directors or holding unlisted equity shares in a company and persons who are taxable under the provisions of the Income Tax Act, 1961 (hereinafter ‘ The tax liability for ESOPs received has been deducted or deferred under section 194N of the IT Act). from eligible start-ups, brought forward or loss carried forward, etc.

ITR-4 form, also known as Sugam, can be used by individuals, HUFs, firms (other than Limited Liability Partnership firms) whose total income 50 lakhs, and having income from businesses and professions which is computed under section 44AD, 44ADA, 44AE of the IT Act.

However, it cannot be used by individuals who are either directors in a company or have invested in unlisted equity shares or deferred income tax on ESOPs received from eligible start-ups whose agricultural income exceeds Is 5,000, any income source outside India, etc.

CA Viral S Vora, Partner, Vora Vora & Associates (Chartered Accountants) said that the Income Tax Department issues Income Tax Return (ITR) forms for return filing every financial year. This year also, the Central Board of Direct Taxes (CBDT) has notified the forms for furnishing Income Tax Return vide Notification No. 04/2023, dated 10th February 2023 and Notification No. 05/2023, dated 14th February 2023. For the financial year 2022-23, corresponding to the assessment year 2023-24.

In this regard, the Income Tax Department had issued an offline utility for ITR Form 1 and 4 on 25 April 2023.

ITR-1 is applicable

• Resident (other than not ordinarily resident) individual taxpayer
• Income from salary or pension, one house property, income under other sources (excluding lottery, betting and gambling but including income from retirement benefit accounts maintained outside India), and agricultural income 5,000, which should not exceed in the aggregate 50,00,000.

ITR-4 is applicable

• Broader category of resident taxpayers, i.e., individuals, HUFs and firms (other than LLPs)
• Income from presumptive business, profession or goods or conveyance, other than the category of income specified under ITR-1, as computed under section 44AD, 44ADA or 44AE respectively, which in the aggregate shall not exceed 50,00,000.

significant change

Some changes have been made in ITR-1 and 4 forms to switch between old vs new tax regime, additional requirements for filing income tax returns such as turnover from business 60 lakhs in the last financial year, turnover more than profession 10 lakhs in the previous financial year, and TDS deducted in the previous financial year, which are furnished in ITR 1 and ITR 4.

How to download ITR 1 & 4?

CA Manish Mishra, Virtual CFO said that the Income Tax Department of India has released the offline forms for Income Tax Return (ITR) 1 and ITR 4 for the financial year 2022-23 ahead of schedule. This will give enough time to the taxpayers to prepare their tax returns before the due date.

ITR is designed for individuals with income up to 1 50 lakhs who have only one house property and no capital gains. The due date for filing ITR 1 for the financial year 2022-23 is 31 July 2023.

On the other hand, ITR 4 is for individuals, Hindu Undivided Families (HUFs) and firms, whose total income is up to 50 lakhs who have opted for the presumptive taxation scheme. The due date for filing ITR 4 for the financial year 2022-23 is 31 October 2023.

Offline forms can be downloaded from the Income Tax e-filing portal. The forms are available in both Excel and Java utility formats, making the tax-filing process more accessible and user-friendly.

The early issuance of offline forms is a positive step that is likely to make tax-filing less stressful for taxpayers, giving them more time to prepare and file their returns before the respective due dates.

Changes in new ITR form

Vivek Jalan, partner, Tax Connect Advisory, a multi-disciplinary tax consultancy firm, said this year the government has notified ITRs much earlier than March and hence taxpayers will get enough time to prepare for revision of returns. However, the return can be filed only after the online return filing format is made available. This online format is called “ITR Utility”. Excel is one of the utility utilities. Excel-based utility for filing ITR-1 SAHAJ and ITR-4 SUGAM for AY 2023-24 is available to download from the official website of the Income Tax Department. These two ITRs are the simplest ITRs and have not changed much as compared to last year and this is probably the reason why CBDT has chosen to make these utilities live. I’m sure others will soon follow suit.

However, there is one important change in the ITR-4 utility that taxpayers should take note of. In the case of an assessee having income from business or profession, the option to opt for the new income-tax regime, once exercised, is allowed to be withdrawn only once in a lifetime. The details are sought in the new ITR form whether the assessee has opted out of the new regime in earlier years. In case the assessee has exercised the option, he has to give the details of the assessment year in which the said option is exercised, the date of filing and the acknowledgment number of Form 10-IE.

Assessees should take note of this change and ensure that they file accordingly.

How to file IT return?

RSM India founder Suresh Surana said that as soon as the new assessment year begins, taxpayers will have to file income tax returns applicable for the previous financial year i.e. FY 2022-23 (age 2023-24). The last date for filing income tax return in respect of assessment year 2023-24 is 31 July 2023, for individual taxpayers, Hindu-Undivided Family (HUF), association of persons (AOP) and body of individuals (BOI), provided their accounts No need to audit the books of As mentioned above in answer to question 1, a taxpayer can file income tax return either directly on the e-filing portal or through offline mode. An overview of such process with respect to both such methods is discussed below:

offline mode:

Step 1: To file ITR using XML method, assessee needs to download either Excel utility or Java utility https://www.incometax.gov.in/

Step 2: Extract the downloaded utility zip file and fill in the applicable and mandatory fields of the ITR form.

Step 3: Validate all the tabs in the ITR form and calculate tax

Step 4: Generate and Save the XML File

Step 5: Finally, the assessee will be required to attach the XML file at the “Income Tax Return” link and validate it using any of the specified options

(Login to e-filing portal < Click on “e-File” menu < Click on “Income Tax Return” link < Select submission mode as “Upload XML”)

online mode:

Step 1: Log in https://www.incometax.gov.in/iec/foportal/ Using PAN and Password

Step 2: “e-File” menu < click on the “Income Tax Return” link < select the mode of submission as “Prepare and Submit Online”

Step 3: Fill all the applicable and mandatory fields of the ITR form carefully

Step 4: Finally, choose the appropriate verification option in the “Tax Paid & Verification” tab and submit the form.