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Changes In ITR Forms For The FY 2021-22
Written by Gagandeep Arora - Date - 18th May 2022
At the onset of the budget every year there are changes brought about in the taxation provisions. For Fy 2021-22 there are no changes given in the income tax slab rates and small changes in the return forms, as stated in the circular dated 30 March 2022 by the Central Board Of Direct Taxes. The last date to file ITR is 31 July 2022 for an assessee who is not applicable for audit otherwise it is 31 October 2022 for an individual for whom audit is applicable.
Recent Changes In The ITR Forms
The changes in the ITR form for the FY2021-22 as brought about by the Finance Act, 2022- .
Form ITR 1- Retirement Benefit Account
To avoid difficulties faced by NRI due to double taxation on money built-up in foreign retirement accounts a few rules have been set up. The ITR1 form requires details regarding the retirement benefit accounts maintained in the notified countries under Section 89A, namely Canada, the United States of America, the United Kingdom of Great Britain and Northern Ireland. This amount needs to be included in the net salary. The form also requires information on income from retirement accounts maintained in other foreign countries.
Form ITR 2 and ITR 3- Interest built-up on PF Contribution Above Rs. 2.5 Lakhs
The new addition is the” Schedule- Tax-deferred on ESOPS” which requires eligible start-ups under Section 80-IAC to report tax-deferred on ESOP received from the employer in the form ITR 2 and ITR 3. Disclosure is required as ESOPS because taxation is deferred till the point of sale. The details regarding the same need to be stated under the new schedule are-
- The amount of tax-deferred in the ITR filed in the previous assessment years.
- Date of sale of specified securities along with tax applicable to each sale.
- The date he left the organisation.
- If 48 months have passed from the end of the relevant assessment year in which specified securities or sweat equity securities were allotted.
- Tax payable in the current assessment year.
- Amount of Tax-Deferred to be carried forward to next year.
More Disclosures Needed If Opted For The New Tax Regime
Form ITR 3 and ITR 4 require an individual to clearly state whether they had opted for the new tax regime under section 115BAC and Form 10-1E was filed in the FY 2020-21. Furthermore, an assessee can leave or continue with the new tax regime for FY 2021-22.
Form ITR2, ITR3, ITR5 and ITR6 -Disclosures For Capital Gains
A few additional disclosures are required in the forms ITR2, ITR3, ITR4, ITR5 and ITR6 regarding Capital gains. Any improvement cost incurred over the years needs to be stated following the financial years respectively. A separate statement of disclosure is required for the cost of acquisition and indexed cost of acquisition.
Form ITR 4,ITR 5 And ITR 6- SEP
For a Non-resident Indian having a significant economic presence in India, some disclosures are required-
- Total of payments occurring because of the transactions of the previous year as referred to in Explanation 2A(a) to Section 9 (1) (i) of the Income-tax act.
- Number of users in India as per explanation 2(A) (b) to Section 9 (1) (ii) of the Income Tax Act.
Form ITR 3, ITR5 And ITR6- Transfer Pricing Secondary Adjustments
Details regarding the tax on secondary adjustments need to be provided as per Section 92CE (2A) as per the schedule given. The required details are-
- The basic adjustments on which options under Section 92 CE(2A) are exercised and the money has not been brought back into our country within the prescribed time.
- The amount of tax payable on the above.
- Tax challan paid
Conclusion- Be prepared for the FY 2021-22
Any change made in the ITR forms by the CBDT needs to be complied with by an individual before filing their returns. It is beneficial to have complete knowledge before filing the returns. Hope the article is helpful and in case of any need you can consult a professional.
