Income Tax return: New ITR forms explained

A comparison of the new ITR forms

In this post, we will discuss the newly declared Income Tax Return (ITR) forms ITR-1 to ITR-7 for the assessment year 2022-23 for filing the return of income earned in the financial year 2021-22.


The Central Board of Direct Taxes (CBDT) has notified the ITR-1 to ITR-7 forms for AY 2022-23, which are available on the Income Tax website.
Keep in mind, that an assessment year (AY) is the year that immediately follows the financial year (FY) in which the income was earned. ie, Income of FY 2021-22 will be accessed in AY 2022-23.
All ITR forms will seek additional information with regard to overseas retirement benefits and interest accrual on provident fund deposits exceeding Rs 2.5 lakh a year.
This year, almost all the ITR forms have been kept unchanged from the last year, except few small changes as detailed here-under:

ITR 1-Sahaj

It is for salaried individuals (excluding non-residents) having a total income of up to Rs 50 lakh for the financial year 2021-22.
Also, you can file if you earn from other sources such as interest from bank deposits, single house property, and agricultural income up to Rs.5000.
It does not apply to individuals who are either director in a company or invest in unlisted equity shares, or if TDS has been deducted u/s 194N or if income tax is deferred under an employee stock ownership plan.

Pension recipients who receive pension from accounts in foreign countries and file ITR-1 in India will be required to provide additional information. Under section 89A, they will need to provide details of retirement benefit accounts held in notified countries and those held in non-notified countries.


You have to file ITR-2 if your salary income exceeds Rs 50 lakhs.
Similarly, If you have income from more than one house property, or if you earn foreign income or own foreign assets, ITR-2 needs to be filed.
For Individuals and HUFs(hindu undivided family) not having income from profits and gains of business or profession, return can be filed through ITR-2.

The ITR-2 form has been modified to collect additional information. When it comes to stock option benefits provided by eligible startups, taxation occurs at the time of sale. There is now a separate schedule to capture details of such deferment. The interest earned on PF contributions beyond specified limits is taxable. Similarly, tax return forms attempt to capture interest accrued as well.


ITR-3 is filed by individuals and HUFs having income from profits and gains of business or profession (who do not earn a salaried income). This ITR can also be used if you are a partner of the firm.

ITR 4-Sugam

It is to be filed by resident individuals, partnership firms and HUFs who had income either from the profession or business income under sections 44AD, 44ADA or 44AE.

It does not apply to people who are directors in companies or have unlisted equity shares, or if their ESOP is deferred or they have agriculture income higher than RS 5000.


It is for Persons other than an individual, a HUF, a company, or a person filing ITR-7.


Except for companies exempted under section 11, for all others who are registered as companies.


The form is for persons and companies required to file returns under section 139(4A) or 139(4B) or 139(4C) or 139(4D).

This post on newly notified ITR forms has come to an end. Share your views and opinion with us in the comment section below.