Returns and Forms Applicable to Individual having Income from Business / Profession for AY 2022-2023  

Disclaimer: The content on this page is only to give an overview and general guidance and is not exhaustive. For complete details and guidelines, please refer to the Income Tax Act, Rules and Notifications.

2. ITR-4 (SUGAM) – Applicable for Individual, HUF & 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 and Profession which is computed on a presumptive basis (under section 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, or (b) has held any unlisted equity shares at any time during the previous year, or (c) has any asset (including financial interest in any entity) located outside India, or (d) has signing authority in any account located outside India, or  (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 Form ITR-4 (SUGAM) is not mandatory. It is a simplified return form to be used by an assessee, at his / her option, if he / she is eligible to declare Profits and Gains from Business or Profession on presumptive basis under Section 44AD, 44ADA or 44AE.

Forms Applicable

Tax Slabs for AY 2022-23

Individuals & HUFs can opt for the existing 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 existing tax regime. The option can be exercised for every previous year where the Individual or the HUF has no Business Income.    

For a person having Business Income, once the option to be taxed under the new tax regime has been exercised for a previous year, shall be valid for that previous year and all subsequent years till the business continues to exist.
 

For Individual (Resident or Non-Resident) less than 60 years of age anytime during the previous year: Existing Tax Regime 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: Existing Tax Regime 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 ₹ 1,12,500 + 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

Individual (Resident or Non-Resident) 80 years of age or more anytime during the previous year: Existing Tax Regime 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 87-A 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 surcharge on income by way of dividend or income under the provisions of 111A, 112A and 115AD 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 crores respectively. What is Health and Education cess? Health and 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 and housing improvement loan. In case of self-occupied property, the upper limit for deduction of interest paid on housing loan is ₹ 2 lakhs. However, this deduction is not available for persons 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 Interest  (Maximum Limit)
Self-occupied	On or after 01/04/1999	Construction or Purchase of House Property	₹ 2,00,000
	On or after 01/04/1999	For Repairs of House Property	₹ 30,000
	Before 01/04/1999	Construction or purchase of House Property	₹ 30,000
	Before 01/04/1999	For Repairs of House Property	₹ 30,000
Let Out	Any time	Construction or purchase of House Property	No maximum limit

 

Tax deductions specified under Chapter VI-A of the Income Tax Act

These deductions will not be available to a taxpayer opting for the new tax regime u/s 115 BAC, except for deduction under Section 80CCD(2)  and 80JJAA  which will be allowable under new tax regime as well.

80C, 80CCC, 80CD(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 and Other various items 80CCC Annuity plan of LIC or other Insurer towards Pension Scheme 80CD(1) Pension scheme of Central Government	Combined deduction limit of ₹ 1,50,000

 

80CCD(1B)
Deduction towards payments made to Pension scheme of Central Government, excluding deduction claimed under 80CCD (1)	Deduction Limit of ₹ 50,000

 

80CCD (2)
Deduction towards Contribution made by an employer to the Pension Scheme of Central Government: If employer is a PSU, State Government or Others Deduction of 10% of salary If employer is Central Government Deduction of 14% of salary

 

80D

Deduction towards payments made to Health Insurance Premium and Preventive Health check-up: For self / spouse or dependent children   Deduction limit is  ₹ 25,000 (₹50,000 if any person is a senior citizen) ₹ 5,000 for preventive health check-up, included in above limit For parents Deduction limit is  ₹ 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 is ₹ 50,000 For parents Deduction limit is ₹ 50,000

 

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 incurred.  The deduction is ₹ 1,25,000 if the person has severe disability (80% or more).

 

Note: Dependent should not claim deduction u/s 80U to claim this deduction.

 

80DDB
Deduction towards payments made towards medical treatment of self or dependent for specified disease	Deduction limit of ₹ 40,000 (₹ 1,00,000 if senior citizen)

 

80E
Deduction towards interest payments made on loan for higher education of self or relative	Total amount paid towards interest on loan taken

 

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

 

80EEA
Deduction available only to individuals  towards interest payments made on loan taken for acquisition of residential house property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 and deduction should not have been claimed u/s 80E	Deduction limit of ₹1,50,000 on the interest paid on loan taken

 

80EEB
Deduction towards interest payments made on loan for purchase of electric vehicle where the loan is sanctioned between 1st April 2019 to 31st March 2023	Deduction limit of ₹ 1,50,000 on the interest paid on loan taken

 

80G
Deduction towards Donations made to prescribed funds, charitable institutions, etc. Donation are eligible for deduction under the below categories Subject to qualifying limit 100% deduction 50% deduction Without any limit 100% deduction 50% deduction     Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000

 

80GGC
Deduction towards donations made to Political Party or Electoral Trust	Deduction of total amount paid through any mode other than cash

 

80GG

Deduction towards rent paid for house and applicable only for 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 (excluding long term capital gains, short term capital gains under section 111A or income under section 115A or 155D) ₹ 5,000 per month 25% of total income before this deduction    Note: Form 10BA to be filed for claiming this deduction.

 

80IA

Undertaking engaged in developing, maintaining and operating any infrastructure facility (only Indian Company), Industrial Parks (any Undertaking), any Power Undertaking, Reconstruction or Revival of Power Generating Plants (Indian Company) shall be entitled to claim deduction (subject to certain conditions)

100% of profit for 10 consecutive AYs falling within a period of 15  AY beginning with the AY in which assessee develops / begins operating and maintaining infrastructure facility.   No deduction shall be allowed to any enterprise which starts the development or operation and maintenance of the infrastructure facility on or after the 1st day of April, 2017. (No deduction shall be allowed if development, operation, etc. started after specified dates for specified business)

 

80IAB
Deduction in respect of Profits and Gains by an Undertaking or an Enterprise Engaged in Development of Special Economic Zone (Subject to certain conditions)	100% of profit for 10 consecutives AY out of 15 AY beginning from the year in which a Special Economic Zone has been notified by the Central Government No deduction to an Assessee, where the development of Special Economic Zone begins on or after 1st April 2017

 

80IB

Deduction towards Profits and Gains from specified industrial undertakings other than infrastructure development undertakings- 100% of profit for 10 years from the AY in which it is approved by prescribed authority (if approved after 31st March 2000 but before 1st April 2007). The deduction under this section is available to an assessee whose Gross Total Income includes any Profits and Gains derived from the business of: Industrial Undertaking including an SSI in J&K; Commercial Production and Refining of Mineral Oil; Processing, Preservation and Packaging of Fruits or Vegetables, Meat and Meat Products or Poultry or Marine or Dairy Products; Integrated Business of Handling, Storage and Transportation of Food Grains Indian Company with Scientific and Industrial Research and Development as its main object and approved by prescribed authority shall be entitled to claim deductions (Subject to certain conditions)   100% / 25% of profit for 5 / 10 / 7 years as per conditions specified for different types of undertakings from the AY in which it is approved by prescribed authority (if approved before 1st April 1999).

 

80IBA
Profit and Gains derived from Developing and Building Housing Projects	100% of profit subject to various conditions specified

 

80IC
Deduction in respect of certain Undertakings in Himachal Pradesh, Sikkim, Uttaranchal and North-Eastern states (subject to certain conditions)	100% of profits for first 5 AY and 25% (30% for a company) for next 5 AY to manufacture or produce specified article or thing

 

80IE
Deduction to certain Undertakings set up in North- Eastern states (subject to certain conditions)	100% of profits for 10 AY subject to various conditions specified

 

80JJA
Deduction in respect of Profits and Gains from Business of Collecting and Processing of Biodegradable Waste (subject to certain conditions)	100% of profits from activity of collecting, processing and treating bio degradable waste for 5 consecutive AYs

 

80JJAA
Deduction in respect of Employment of New Workers / Employees, applicable to assessee to whom Section 44AB applies (subject to certain conditions)	30% of additional employee cost for 3 AY, subject to certain conditions

 

80QQB
Deduction in respect of Resident Authors of certain Books other than Textbooks	Income derived by way of Royalty by an Author / Joint Author up to a maximum of ₹ 3 lakh, subject to other conditions

 

Note: Deduction claimed here cannot be claimed elsewhere in the Income Tax Act.

 

80RRB
Deduction for Resident Individuals in respect of Royalty on Patents	First Inventor / Co-owner under the Patents Act, 1970 earning income by way to Royalty up to the amount of Royalty or ₹ 3 lakh (whichever is lesser)

 

Note: Deduction claimed here cannot be claimed elsewhere in the Income Tax Act.

 

80TTA
Deduction on Interest Received on Saving Bank Accounts by Non-Senior Citizens	Deduction limit of ₹ 10,000/-

 

80TTB
Deduction on Interest Received on Deposits by Resident Senior Citizens	Deduction limit of ₹ 50,000/-

 

80U
Deductions for a Resident  Individual Taxpayer with Disability	Flat ₹ 75,000/- deduction for a person with disability, irrespective of expense incurred Flat ₹ 1,25,000/- deduction for a person with severe disability (80% or more), irrespective of expense incurred