The income-tax department has notified forms for filing IT returns by individuals as well as businesses for 2022-23, which has a separate schedule to disclose income from virtual digital assets such as crypto currency.

The forms also allow individuals against whom search and seizure operations were carried out by the IT authorities to file revised income tax return in ITR-1 form for assessment year (AY) 2023-24.

Tax experts said there are no substantial changes in the six income tax return forms catering to individuals, professionals and businesses, notified by the Central Board of Direct Taxes (CBDT) on February 10. The forms will come into effect from April 1, a CBDT notification said.

This year, CBDT has notified ITR forms 1-6 as well as ITR-V (verification form) and ITR acknowledgement form in advance, a move that will give taxpayers enough time to prepare for relevant disclosures. The IT department earlier used to notify ITR forms for the relevant financial year either by March or April.

The forms have been notified for assessment year 2023- 24 (for income earned in 2022- 23).

Ved Jain, former president of the Institute of Chartered Accountants of India, said these forms are for various classes of taxpayers. This is not in line with the finance minister’s proposal in Budget 2023 for a next-generation common ITR for all taxpayers.

Nirmala Sitharaman had said: “It has been the constant endeavour of the IT department to improve taxpayers’ services by making compliance easy and smooth...average processing period reduced from 93 days in financial year 13-14 to 16 days now; and 45 per cent of the returns were processed within 24 hours. We intend to further improve this, roll out a next-generation common IT return form and also plan to strengthen the grievance redressal mechanism.”

“While the CBDT had released common ITR form for public consultation in November 2022, the new forms notified are separate ITR forms and one would need to wait for common ITR forms.

“No significant changes have been made to tax return forms notified this year. A separate “schedule — VDA” has been added to report income from virtual digital asset such as crypto currency. Tax provisions for taxation of VDAs were introduced from FY 2022- 23 hence the addition of the new schedule is in line with the expectation,” said Saraswathi Kasturirangan, partner, Deloitte India.