Salaried Individuals for AY 2023-24: Returns and Forms Applicable for Salaried Individuals for AY 2023-24
| 1. ITR-1 (SAHAJ) – Applicable for Individual |
|---|
| This return is applicable for a Resident (other than Not Ordinarily Resident) Individual having Total Income from any of the following sources up to ₹ 50 lakh |
| Salary / Pension | One House Property | Salary / Pension One House Property Other sources (Interest, Family Pension, Dividend etc.) |
Agricultural Income up to ₹ 5,000 |
| Note: ITR-1 cannot be used by a person who: (a) is a Director in a company (b) has held any unlisted equity shares at any time during the previous year (c) has any asset (including financial interest in any entity) located outside India (d) has signing authority in any account located outside India (e) has income from any source outside India (f) is a person in whose case tax has been deducted u/s 194N (g) is a person in whose case payment or deduction of tax has been deferred on ESOP (h) who has any brought forward loss or loss to be carried forward under any head of income |
2. ITR-2 – Applicable for Individual and HUF
This return is applicable for Individual and Hindu Undivided Family (HUF)
| Not having Income under the head Profits and Gains of Business or Profession | Who is not eligible for filing ITR-1 |
3. ITR-3- Applicable for Individual and HUF
This return is applicable for Individual and Hindu Undivided Family (HUF)
| Having Income under the head Profits and Gains of Business or Profession | Who is not eligible for filing ITR-1, ITR-2 or ITR-4 |
4. ITR-4 (SUGAM) – Applicable for Individual, HUF and Firm (other than LLP)
This return is applicable for an Individual or Hindu Undivided Family (HUF), who is Resident other than Not Ordinarily Resident or a Firm (other than LLP) which is a Resident having Total Income up to ₹ 50 lakh and having income from Business or Profession which is computed on a presumptive basis (u/s 44AD / 44ADA / 44AE) and income from any of the following sources:
| Salary / Pension | One House Property | Other sources (Interest, Family Pension, Dividend etc.) | Agricultural Income up to ₹ 5,000 |
Note:
ITR-4 cannot be used by a person who:
(a) is a Director in a company
(b) has held any unlisted equity shares at any time during the previous year
(c) has any asset (including financial interest in any entity) located outside India
(d) has signing authority in any account located outside India
(e) has income from any source outside India
(f) is a person in whose case payment or deduction of tax has been deferred on ESOP
(g) who has any brought forward loss or loss to be carried forward under any head of income
Please note that ITR-4 (Sugam) is not mandatory. It is a simplified return form to be used by an Assessee, at his option, if he is eligible to declare Profits and Gains from Business or Profession on presumptive basis u/s 44AD, 44ADA or 44AE.
1. Form 12BB – Particulars of claims by an employee for deduction of tax (u/s 192)
| Provided by | Details provided in the form |
| An Employee to his Employer(s) | Evidence or particulars of HRA, LTC, Deduction of Interest on home loan, Tax Saving Claims / Deductions on eligible payments or investments for the purpose of calculating Tax to be Deducted at Source (TDS) |
2. Form 16 – Certificate of Tax Deducted at Source on Salary (U/s 203 of the Income Tax Act, 1961)
| Provided by | Details provided in the form |
| An Employer(s) to his Employee at the end of the financial year | Income of employee, Deductions / Exemptions and Tax Deducted at Source for the purpose of Computing Tax Payable / Refundable |
3. Form 16A – Certificate u/s 203 of the Income Tax Act, 1961 for TDS on Income other than Salary
| Provided by | Details provided in the form |
| Deductor to Deductee | Form 16A is a Tax Deducted at Source (TDS) Certificate issued quarterly that captures the amount of TDS, Nature of Payments and the TDS Payments deposited with the Income Tax Department |
4. Form 67- Statement of Income from a country or specified territory outside India and Foreign Tax Credit
| Submitted by | Details provided in the form |
| Taxpayer on or before the due date specified for furnishing the ITRs u/s 139(1) | Income from a country or specified territory outside India and Foreign Tax Credit claimed |
5. Form 26AS
| Provided by | Details provided in the form |
| Income Tax Department (It is available on e-Filing Portal: Login > e-File > Income Tax Return > View Form 26AS) |
Tax Deducted / Collected at Source. |
Note: Information (Advance Tax/SAT, Details of refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M, TDS defaults) which were available in 26AS will now be available in AIS mentioned below.
6. AIS- Annual Information Statement
| Provided by | Details provided in the form |
| Income Tax Department (It can be accessed in Services menu after logging on to Income Tax e-Filing portal) | Tax Deducted / Collected at Source SFT Information Payment of taxes Demand / Refund Other information (like Pending/Completed proceedings, GST Information, Information received from foreign government etc) |
7. Form 15G – Declaration by resident taxpayer (not being a Company or Firm) claiming certain receipts without deduction of tax
| Submitted by | Details provided in the form |
| A Resident Individual less than 60 years or HUF or any other Person (other than Company / Firm) to Bank for not deducting TDS on Interest Income, if the income is below basic exemption limit | Estimated Income for the FY |
8. Form 15H – Declaration to be made by a resident individual (who is 60 years age or more) claiming certain receipts without deduction of tax
| Submitted by | Details provided in the form |
| A Resident Individual, 60 years or more to Bank for not deducting TDS on Interest Income | Estimated Income for the FY |
9. Form 10E – Form for furnishing particulars of Income for claiming relief u/s 89(1) when Salary is paid in arrears or advance
| Provided by | Details provided in the form |
| An Employee to the Income Tax Department | Arrears / Advance Salary Gratuity Compensation on Termination Commutation of Pension |
Tax Slabs for AY 2023-24
Individuals and HUFs can opt for the Old Tax Regime or the New Tax Regime with lower rate of taxation (u/s 115 BAC of the Income Tax Act)
The taxpayer opting for concessional rates in the New Tax Regime will not be allowed certain Exemptions and Deductions (like 80C, 80D, 80TTB, HRA) available in the Old Tax Regime. However, the deductions under section 80CCD(2), 80CCH(2) and 80JJAA shall be available in the New Tax Regime.
For Individual (resident or non-resident) less than 60 years of age anytime during the previous year:
| Old Tax Regime | Old Tax Regime | New Tax Regime u/s 115BAC | New Tax Regime u/s 115BAC |
| Income Tax Slab | Income Tax Rate | Income Tax Slab | Income Tax Rate |
| Up to ₹ 2,50,000 | Nil | Up to ₹ 2,50,000 | Nil |
| ₹ 2,50,001 – ₹ 5,00,000 | 5% above ₹ 2,50,000 | ₹ 2,50,001 – ₹ 5,00,000 | 5% above ₹ 2,50,000 |
| ₹ 5,00,001 – ₹ 10,00,000 | ₹ 12,500 + 20% above ₹ 5,00,000 | ₹ 5,00,001 – ₹ 7,50,000 | ₹ 12,500 + 10% above ₹ 5,00,000 |
| Above ₹ 10,00,000 | ₹ 1,12,500 + 30% above ₹ 10,00,000 | ₹ 7,50,001 – ₹ 10,00,000 | ₹ 37,500 + 15% above ₹ 7,50,000 |
| ₹ 10,00,001 – ₹ 12,50,000 | ₹ 75,000 + 20% above ₹ 10,00,000 | ||
| ₹ 12,50,001 – ₹ 15,00,000 | ₹ 1,25,000 + 25% above ₹ 12,50,000 | ||
| Above ₹ 15,00,000 | ₹ 1,87,500 + 30% above ₹ 15,00,000 |
For Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year:
| Old Tax Regime | Old Tax Regime | New Tax Regime u/s 115BAC | New Tax Regime u/s 115BAC |
| Income Tax Slab | Income Tax Rate | Income Tax Slab | Income Tax Rate |
| Up to ₹ 3,00,000 | Nil | Up to ₹ 2,50,000 | Nil |
| ₹ 3,00,001 – ₹ 5,00,000 | 5% above ₹ 3,00,000 | ₹ 2,50,001 – ₹ 5,00,000 | 5% above ₹ 2,50,000 |
| ₹ 5,00,001 – ₹ 10,00,000 | ₹ 10,000 + 20% above ₹ 5,00,000 | ₹ 5,00,001 – ₹ 7,50,000 | ₹ 12,500 + 10% above ₹ 5,00,000 |
| Above ₹ 10,00,000 | ₹ 1,10,000 + 30% above ₹ 10,00,000 | ₹ 7,50,001 – ₹ 10,00,000 | ₹ 37,500 + 15% above ₹ 7,50,000 |
| ₹ 10,00,001 – ₹ 12,50,000 | ₹ 75,000 + 20% above ₹ 10,00,000 | ||
| ₹ 12,50,001 – ₹ 15,00,000 | ₹ 1,25,000 + 25% above ₹ 12,50,000 | ||
| Above ₹ 15,00,000 | ₹ 1,87,500 + 30% above ₹ 15,00,000 |
For Individual (resident or non-resident) 80 years of age or more anytime during the previous year:
| Old Tax Regime | Old Tax Regime | New Tax Regime u/s 115BAC | New Tax Regime u/s 115BAC |
| Income Tax Slab | Income Tax Rate | Income Tax Slab | Income Tax Rate |
| Up to ₹ 5,00,000 | Nil | Up to ₹ 2,50,000 | Nil |
| ₹ 5,00,001 – ₹ 10,00,000 | 20% above ₹ 5,00,000 | ₹ 2,50,001 – ₹ 5,00,000 | 5% above ₹ 2,50,000 |
| Above ₹ 10,00,000 | ₹ 1,00,000 + 30% above ₹ 10,00,000 | ₹ 5,00,001 – ₹ 7,50,000 | ₹ 12,500 + 10% above ₹ 5,00,000 |
| ₹ 7,50,001 – ₹ 10,00,000 | ₹ 37,500 + 15% above ₹ 7,50,000 | ||
| ₹ 10,00,001 – ₹ 12,50,000 | ₹ 75,000 + 20% above ₹ 10,00,000 | ||
| ₹ 12,50,001 – ₹ 15,00,000 | ₹ 1,25,000 + 25% above ₹ 12,50,000 | ||
| Above ₹ 15,00,000 | ₹ 1,87,500 + 30% above ₹ 15,00,000 |
Note:
1. The rates of Surcharge and Health & Education cess are same under both the tax regimes
2. Rebate u/s 87A: Resident Individual whose Total Income is not more than ₹ 5,00,000 is also eligible for a Rebate of up to 100% of income tax or ₹ 12,500, whichever is less. This Rebate is available in both tax regimes.
Surcharge, Marginal Relief and Health & Education Cess
What is Surcharge?
Surcharge is an additional charge levied for persons earning Income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates
- 10% – Taxable Income above ₹ 50 lakh – up to ₹ 1 crore
- 15% – Taxable Income above ₹ 1 crore – up to ₹ 2 crore
- 25% – Taxable Income above ₹ 2 crore – up to ₹ 5 crore
- 37% – Taxable Income above ₹ 5 crore
- Maximum rate of Surcharge on Income by way of Dividend or Income under the provisions of Sections 111A, 112, and112A is 15%
What is Marginal Relief?
Marginal relief is a Relief from Surcharge, provided in cases where the Surcharge payable exceeds the additional income that makes the person liable for Surcharge. The amount payable as Surcharge shall not exceed the amount of income earned exceeding ₹ 50 lakh, ₹ 1 crore, ₹ 2 crore or ₹ 5 crore respectively
What is Health and Education cess?
Health & Education cess @ 4% shall also be paid on the amount of income tax plus Surcharge (if any)
Investments / Payments / Incomes on which I can get tax benefit
Section 24(b) – Deduction from Income from House Property on interest paid on housing loan & housing improvement loan. In case of self- occupied property, the upper limit for deduction of interest paid on housing loan is ₹ 2 lakh. However, this deduction is not available for person opting for New Tax Regime.
Interest on loan u/s 24(b) allowable is tabulated below:
| Nature of Property | When loan was taken | Purpose of loan | Allowable (Maximum limit) |
| Self-Occupied | On or after 1/04/1999 | Construction or purchase of house property | ₹ 2,00,000 |
| On or after 1/04/1999 | For Repairs of house property | ₹ 30,000 | |
| Before 1/04/1999 | Construction or purchase of house property | ₹ 30,000 | |
| Before 1/04/1999 | For Repairs of house property | ₹ 30,000 | |
| Let Out | Any time | Construction or purchase of house property | Actual value without any limit |
Tax deductions specified under Chapter VIA of the Income Tax Act
These deductions will not be available to a taxpayer opting for the New Tax Regime u/s 115BAC, except for deduction u/s 80CCD (2), 80CCH which will be applicable for New Tax Regime as well.
Section 80C, 80CCC, 80CCD (1)
Deduction towards payments made to
80C
- Life Insurance Premium
- Provident Fund
- Subscription to certain equity shares
- Tuition Fees
- National Savings Certificate
- Housing Loan Principal
- Other various items
Combined deduction limit of ₹ 1,50,000
| Section 80CCD(1B) | |
|---|---|
| Deduction towards payments made to Pension Scheme of Central Government, excluding deduction claimed under 80CCD (1) |  Deduction limit of ₹ 50,000 |
| Section 80CCD(2) |
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| Deduction towards contribution made by an employer to the Pension Scheme of Central Government If the Employer is a PSU or Others Deduction limit of 10% of salaryIf the Employer is Central or State Government Deduction limit of 14% of salary |
Section 80CCH
Deduction in respect of contribution to Agnipath Scheme
| Where an assessee, being an individual enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund on or after the 1st day of November, 2022, has in the previous year paid or deposited any amount in his account in the said fund | Allowed a deduction in the computation of total income, of the whole of the amount so paid or deposited |
| Where the Central Government makes any contribution to the account of an assessee in the Agniveer Corpus Fund | Allowed a deduction in the computation of total income of the whole of the amount so contributed |
Section 80D
Deduction towards payments made to Health Insurance Premium & Preventive Health check up
| For Self / Spouse or Dependent Children | ₹ 25,000 (₹ 50,000 if any person is a Senior Citizen) ₹ 5,000 for preventive health check up, included in above limit |
| For Parents | ₹ 25,000 (₹50,000 if any person is a Senior Citizen) ₹ 5,000 for preventive health check up, included in above limit |
Deduction towards Medical Expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverage
| For Self/ Spouse or Dependent Children | Deduction limit of ₹ 50,000 |
| For Parents | Deduction limit of ₹ 50,000 |
Section 80DD
| Deduction towards payments made towards maintenance or medical treatment of a Disabled Dependent or Paid / Deposited any amount under relevant approved scheme | Flat deduction of ₹ 75,000 available for a person with Disability, irrespective of expense incurredThe deduction is ₹ 1,25,000 if the person has Severe Disability (80% or more).= |
Section 80DDB
| Deduction towards payments made towards Medical treatment of Self or Dependant for specified diseases | Deduction limit of ₹ 40,000 (₹ 1,00,000 if Senior Citizen) |
| Section 80E | |
|---|---|
| Deduction towards interest payments made on loan for higher education of Self or relative | Total amount paid towards interest on loan taken |
| Section 80EE | |
|---|---|
| Deduction towards interest payments made on loan taken for acquisition of residential house property where the loan is sanctioned between 1st April 2016 to 31st March 2017 | Deduction limit of ₹ 50,000 on the interest paid on loan taken |
Section 80G
Deduction towards Donations made to prescribed Funds, Charitable Institutions, etc. Donation are eligible for deduction under the below categories
| Without any limit | 100% deduction 50% deduction |
| Subject to qualifying limit | 100% deduction 50% deduction |
Section 80GG
Deduction towards rent paid for house & applicable to only those who are self-employed or for whom HRA is not part of Salary
Least of the following shall be allowed as deduction
| Rent paid reduced by 10% of Total Income before this deduction | ₹ 5,000 per month | 25% of Total Income (excluding long term capital gains, short term capital gains under section 111A or income under section 115A or 115D) |
Note: Form 10BA to be filled for claiming this deduction.
Section 80GGA
Deduction towards Donations made for Scientific Research or Rural Development
Donation are eligible for deduction under the below categories:
| Research Association or University, College or other Institution forScientific ResearchSocial Science or Statistical Research |
| Association or Institution for Rural DevelopmentConservation of Natural Resources or for Afforestation |
| PSU or Local Authority or an association or institution approved by the National Committee for carrying out any eligible project |
| Funds notified by Central Government forAfforestationRural Development |
| National Urban Poverty Eradication Fund as setup and notified by Central Government |
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Note: No deduction shall be allowed under this Section in respect of donation made in cash exceeding ₹ 2000/- or if Gross Total Income includes income from Profit / Gains of Business / Profession |
Section 80GGC
| Deduction towards Donations made to Political Party or Electoral Trust | Deduction towards Donations made to Political Party or Electoral Trust |
Section 80TTA
| Deduction on interest received on saving bank accounts by Non-Senior Citizens | Deduction limit of ₹ 10,000/- |
Section 80TTB
| Deduction on interest received on deposits by Resident Senior Citizens | Deduction limit of ₹ 50,000/- |
Section 80U
| Deductions for a resident individual taxpayer with Disability | Flat ₹ 75,000 deduction for a person with Disability, irrespective of expense incurredFlat ₹ 1,25,000 deduction for a person with Severe Disability (80% or more), irrespective of expense incurred |