The Income Tax Department has recently released ITR Forms 1 and 4 for
the assessment year 2023-24, enabling job professionals and small
businessmen to file their income tax returns. This announcement is
especially significant for employed individuals, as it provides them with
the necessary tools to fulfill their tax obligations.
The Income Tax Department took to Twitter to share this news and mentioned
that the facility for other income tax returns/forms will be made available
soon. In response to a tweet, the department stated, “The facility to file
online ITR 1 and 4 for the assessment year (AY) 2023-24 has been initiated
on the e-filing portal.”
For individuals whose accounts do not require auditing in the financial
year 2022-23, the deadline for filing income tax returns is July 31.
Salaried individuals and other individuals, including senior citizens,
should file ITR 1, while companies and professionals should file ITR 2.
Additionally, businesses that have opted for presumptive taxation and have
an annual income below Rs. 50 lakhs should also file ITR 2.
By when should we expect the java utility for itr 2 be available to download for AY 23- 24 please ? Kindly do let us know.
— Basant (@Simply_Sense) May 22, 2023
It is important to note that the new tax regime will be the default option
during the filing process. If individuals prefer to file under the Old Tax
Regime, they must manually select this option. The new tax regime offers
limited opportunities for tax exemptions, although income up to Rs. 7 lacks
has effectively been made tax-free. In contrast, the old tax regime allows
for tax exemption through government schemes, investments, and other
methods.
Determining which regime is more beneficial depends on factors such as
income, investment habits, and expenses. According to Archit Gupta, founder
of the Income Tax Portal Clear, there is no definitive answer as to whether
the new tax system or the old tax system is better. It varies depending on
each taxpayer’s circumstances.
For individuals with an annual salary below Rs. 7.5 lakh, the new tax
regime is generally more advantageous. This is because tax rebates are
available for incomes up to Rs. 7 lakh, and a standard deduction of Rs.
50,000 is applicable. In total, individuals earning up to Rs. 7.5 lakh will
not have to pay any taxes.
On the other hand, opting for the old tax system would require
demonstrating investments in various areas to claim tax exemptions. Failure
to do so may result in a tax deduction of approximately Rs. 52,000.