In 2023, tax payers in Goa and Pune need to be aware of certain changes and updates when filing their Income Tax Return (ITR). Staying informed about these changes is crucial to ensure accurate filing and maximize available benefits and deductions.

Taking reference of an article published in Business Today, filing an ITR with incorrect or outdated information can lead to errors, triggering tax audits or investigations by the tax authorities. This can cause additional scrutiny, stress, and potential financial liabilities. Keeping track of changes helps avoid errors and ensures accurate filing to fulfill tax obligations.

While there aren’t many changes this year, there are still significant aspects to consider when filing your ITR. Here are five changes you should know while filing your ITR for 2022-23, as explained by Tarun Kumar Madaan, Tax Head at Coherent Advisors:

1. Reporting of income from virtual digital assets (VDA):
   VDA includes crypto assets, and income generated from their transfer is subject to taxation at a rate of 30% along with applicable surcharge and cess. It’s important to note that deductions for expenses, except for the cost of acquisition if applicable, cannot be availed when calculating tax payers’ income.
   Schedule VDA requires details such as acquisition date, transfer date, category of income for taxation, acquisition cost (in case of a gift), and consideration received. If you have income from VDA, ITR-1 or ITR-4 cannot be used. Instead, report such income on form ITR-2 or ITR-3, under the head of business income or capital gains.
2. Details of opting out of New Tax Regime:
   Individuals or Hindu Undivided Families (HUFs) have the option to choose an alternative tax regime under Section 115BAC. If you have income from business or profession, you can exercise this option but can withdraw it only once for a previous year, excluding the year it was initially exercised. Once the option is withdrawn, you’re no longer eligible to exercise it again unless there’s no income from business or profession. To opt out of the regime, electronically submit Form 10-IE through the e-filing portal.
   In this year’s ITR form, provide details if you have ever opted out of Section 115BAC in earlier years. If you have opted out, include details of the Assessment Year in which the option was opted out, the date of filing, and the acknowledgment number of Form 10-IE.
3. Details of ARN (Donation Reference Number) to claim 80G deduction:
   To claim a deduction under Section 80G, have the donation receipt and the donation certificate in Form 10BE readily available. Provide details of donations in the applicable ‘Schedule 80G’ in the ITR form.
   Ensure that donation information is entered correctly in the designated table. In this year’s ITR form, a new column has been added to ‘Table D’, requiring disclosure of the ARN (Donation Reference Number) for donations made to entities where a 50% deduction is allowed, subject to the qualifying limit. Obtain the ARN from the donation certificate issued in Form 10BE by the donee institutions and include it in the ITR.
4. Reporting of turnover from intraday trading:
   Profit or loss from intraday trading, considered a speculative transaction, is subject to taxation under the category of business income rather than capital gains. This year’s ITR form includes a specific section, Part A–Trading Account, where individuals need to provide separate information on their intraday trading activities. Details such as turnover from intraday trading and income from intraday trading transferred to the Profit and Loss account should be provided.
5. Disclosure of income on which Section 89A relief is claimed:
   Section 89A offers tax relief on income from retirement benefit accounts held in specified countries. If you have claimed such relief, provide the relevant information in Schedule Salary.

These changes are important to consider when filing your ITR in Goa and Pune. Staying updated and accurately reporting your income and deductions will help ensure compliance with tax regulations and maximize the benefits available to you.

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