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Income Tax

Some significant changes have been incorporated in the ITR forms in line with the amendment in Finance Act, 2022, which taxpayers should keep in mind while filing their returns. 

Major changes in ITR-1

The assesses will have to provide information about income from overseas retirement funds while calculating their net salary.

Major changes in ITR-2

  • The assesses will have to provide information about income from overseas retirement funds while calculating their net salary.
  • Separate disclosure is required of interest and dividend incomes taxable under Section 115AC of bonds and GDR purchased in foreign currency.
  • The assesses has to FMV of capital assets transferred by way of slum sale and fair market value of the consideration received or accruing due to transfer by way of slum sale.
  • The assesses has to disclose the foreign asset detail on a calendar year basis that is till December 2021 instead of a financial year basis in March.
  • A new section has been inserted for reporting the tax-deferred on ESOP received from the employer being an eligible start-up under 80IC. The details such as the amount of tax-deferred in earlier AY, date of specified securities, date of employment ceased, amount of tax payable in current AY, Balance amount of tax-deferred c/f in next AY, weather 48 months lapsed from the date sweat equity shares allotted.

Major changes in ITR-3

  • The assesses will have to provide information about income from overseas retirement funds while calculating their net salary.
  • Separate disclosure is required of interest and dividend incomes taxable under Section 115AC of bonds and GDR purchased in foreign currency.
  • A new section has been inserted for reporting the tax-deferred on ESOP received from the employer being an eligible start-up under 80IC. The details such as the amount of tax-deferred in earlier AY, date of specified securities, date of employment ceased, amount of tax payable in current AY, Balance amount of tax-deferred c/f in next AY, weather 48 months lapsed from the date sweat equity shares allotted.
  • The assesses have to disclose the details of tax on secondary adjustments as per section 92CE (2A) which is the amount of primary adjustments on which option exercised an amount not repatriated, amount payable, and challan payment.
  • The assesses has to disclose the foreign asset detail on a calendar year basis that is till December 2021 instead of a financial year basis in March.
  • The assesses has to FMV of capital assets transferred by way of slum sale and fair market value of the consideration received or accruing due to transfer by way of slum sale.

Major changes in ITR-4

  • The assesses will have to provide information about income from overseas retirement funds while calculating their net salary.
  • In the case of a non-resident person having a Special Economic Presence in India the assesses has to disclose the aggregate of payments arising from the transaction or transactions during the previous year as referred in Explanation 2A(a) to Section 9(1)(i) of the IT Act and Number of users in India as referred in Explanation 2A(b) to Section 9(1)(i) of the IT Act.

Major changes in ITR-5

  • In case of non resident person having Special Economic Presence in India the assesses has to disclose the Aggregate of payments arising from the transaction or transactions during the previous year as referred in Explanation 2A(a) to Section 9(1)(i) of the IT Act and Number of users in India as referred in Explanation 2A(b) to Section 9(1)(i) of the IT Act.
  • Separate disclosure is required of interest and dividend incomes taxable under Section 115AC of bonds and GDR purchased in foreign currency.
  • The assesses has to disclose the details of tax on secondary adjustments as per section 92CE (2A) which is amount of primary adjustments on which option exercised and amount not repatriated, amount payable and challan payment.
  • The assesses has to disclose the foreign asset detail on calendar year basis that is till December 2021 instead of financial year basis March.
  • The assesses has to FMV of capital assets transferred by way of slum sale and fair market value of consideration received or accruing due to transfer by way of slum sale.

Major changes in ITR-6

  • In the case of a non-resident person having a Special Economic Presence in India the assesses has to disclose the aggregate of payments arising from the transaction or transactions during the previous year as referred in Explanation 2A(a) to Section 9(1)(i) of the IT Act and Number of users in India as referred in Explanation 2A(b) to Section 9(1)(i) of the IT Act.
  • Separate disclosure is required of interest and dividend incomes taxable under Section 115AC of bonds and GDR purchased in foreign currency.
  • The assesses has to disclose the details of tax on secondary adjustments as per section 92CE (2A) which is amount of primary adjustments on which option exercised and amount not repatriated, amount payable and challan payment.
  • The assesses has to now make disclosure of investment made in unincorporated entity such name of entity, type of entity, PAN, audit liability of entity, 92E liability of entity , share of profit in entity, amount of share in entity, capital balance.
  • The assesses has to disclose the foreign asset detail on calendar year basis that is till December 2021 instead of financial year basis March.
  • The assesses has to FMV of capital assets transferred by way of slum sale and fair market value of consideration received or accruing due to transfer by way of slum sale.

Major changes in ITR-7

  • The assesses has to disclose the foreign asset detail on a calendar year basis that is till December 2021 instead of a financial year basis in March.
  • The assesses has to provide details of funds invested on the last day of the previous year. 

These are a few important changes made in the ITR forms for FY 2021-22. The taxpayers should note these changes and accordingly provide necessary information while filing their income tax return.

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