Recent changes in income tax forms & efiling

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Recent changes in income tax forms & efiling

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  • Recent Changes in Income Tax Forms & Efiling ******************************************** Organised by: Dahisar CPE Study Circle of WIRC of ICAI ******************************************** By CA. NIMESH DEDHIA Recent Changes in Income Tax Forms & Efiling ******************************************** Organised by: Dahisar CPE Study Circle of WIRC of ICAI ******************************************** By CA. NIMESH DEDHIA
  • Key Changes in New ITR Forms (AY 2014-15) Schedule TDS2 : Details of Tax Deducted at Source on Income [As per Form 16 A issued by Deductor(s) or Form 26QB] Schedule TDS2 : Details of Tax Deducted at Source on Income [As per Form 16 A issued by Deductor(s) or Form 26QB] [ITR 1, 2, 3, 4, 5, 6, 7]
  • Initiative for Speedy refund of taxes: Refund to be credited to bank account only Earlier taxpayers had an option to claim refund of tax through cheque or credit into its bank account. As per new forms, facility of getting refund via cheque has been dispensed with and assessee shall get credit of refund of taxes directly into his bank account. Earlier taxpayers had an option to claim refund of tax through cheque or credit into its bank account. As per new forms, facility of getting refund via cheque has been dispensed with and assessee shall get credit of refund of taxes directly into his bank account. [ITR 1, 2, 3, 4, 5, 6, 7]
  • Domestic Company or LLP shall mention a unique Corporate Identity Number (CIN)/LLP identification number ('LLPIN') issued by the MCA in the tax return filed in new ITR form. Unique Identification Numbers issued by MCA to be reported in ITR Forms: [ITR 5, 6]
  • Unique Identification Numbers issued by MCA to be reported in ITR Forms: DIN for the Director in Company & DPIN for the Designated Partner in LLP to be mentioned. [ITR 5, 6]
  • Buy-back of shares to be reported by closely held company [ITR 6]
  • Furnish PAN of debtor responsible for bad-debts Every person claiming deduction of bad debts is required to specify PAN of the debtor, if available, responsible for bad debts. This requirement is specified if quantum of bad debts is Rs. 1 lakh or more. Such requirement was already available in old Forms of ITR 5 and ITR 6. It is now introduced in ITR 4. [ITR 4]
  • Upgraded computation sheet for Capital Gains: New Schedule on Capital Gains provides for a detailed mechanism for computation of capital gains. Major takeaways from Schedule CG are as under: New form provides additionally for computation of short-term capital gains in following cases: (a) Sale of land or building or both as per provisions of section 50C, i.e., full value of consideration viz-a-viz stamp valuation. (b) Sale of securities by FIIs which is taxable as per provisions of section 115AD New Schedule on Capital Gains provides for a detailed mechanism for computation of capital gains. Major takeaways from Schedule CG are as under: New form provides additionally for computation of short-term capital gains in following cases: (a) Sale of land or building or both as per provisions of section 50C, i.e., full value of consideration viz-a-viz stamp valuation. (b) Sale of securities by FIIs which is taxable as per provisions of section 115AD
  • New form provides additionally for computation of long-term capital gains in following cases: (a) Sale of land or building or both as per provisions of section 50C, i.e., full value of consideration viz-a- viz stamp valuation. (b) Sale of bonds or debentures (other than capital indexed bonds issued by Government). (c) Sale of bonds or GDRs by a non-resident which is taxable as per provisions of section 115AC. (d) Sale of securities by FIIs which is taxable as per provisions of section 115AD New form provides additionally for computation of long-term capital gains in following cases: (a) Sale of land or building or both as per provisions of section 50C, i.e., full value of consideration viz-a- viz stamp valuation. (b) Sale of bonds or debentures (other than capital indexed bonds issued by Government). (c) Sale of bonds or GDRs by a non-resident which is taxable as per provisions of section 115AC. (d) Sale of securities by FIIs which is taxable as per provisions of section 115AD
  • The Schedule CG in ITR forms of earlier years could not allow computations of capital gains from individual assets, especially land and building, thereby making it difficult for the taxpayers to correlate the exemptions with rollover of investments. With more categorization, the claim for exemptions would be easier to compute and claim. Capital gains, short-term and long-term, are taxable at different rates so the ITR forms add more rows for taxability of such capital gains at different rates. Details for intra-head adjustments under section 70 shall be provided along with computation of capital gains under the Schedule CG. The Schedule CG in ITR forms of earlier years could not allow computations of capital gains from individual assets, especially land and building, thereby making it difficult for the taxpayers to correlate the exemptions with rollover of investments. With more categorization, the claim for exemptions would be easier to compute and claim. Capital gains, short-term and long-term, are taxable at different rates so the ITR forms add more rows for taxability of such capital gains at different rates. Details for intra-head adjustments under section 70 shall be provided along with computation of capital gains under the Schedule CG. [ITR 2, 3, 4, 5, 6]
  • New cells inserted to obtain more specific information: A. Expenditure disallowable under sections 36 and 37 The New ITR forms require taxpayers to provide specific information to the extent possible. Accordingly, it inserts new cells to disclose expenditures which are is allowable under specific provisions of the Income-tax Act as under: (a) Amount of contribution to a pension scheme referred to in section 80CCD [section 36(1)(iva)] (b) Amount of securities transaction paid in respect of transaction in securities, if such income is not included in business income [36(1)(xv)] (c) Expenditure of capital nature [section 37(1)] (d) Expenditure laid out or expended wholly and exclusively not for the purpose of business or profession [section 37(1)] A. Expenditure disallowable under sections 36 and 37 The New ITR forms require taxpayers to provide specific information to the extent possible. Accordingly, it inserts new cells to disclose expenditures which are is allowable under specific provisions of the Income-tax Act as under: (a) Amount of contribution to a pension scheme referred to in section 80CCD [section 36(1)(iva)] (b) Amount of securities transaction paid in respect of transaction in securities, if such income is not included in business income [36(1)(xv)] (c) Expenditure of capital nature [section 37(1)] (d) Expenditure laid out or expended wholly and exclusively not for the purpose of business or profession [section 37(1)] [ITR 4, 5, 6]
  • B. Deemed Income under section 43CA The Finance Act, 2013 has introduced a new section 43CA which provides that stamp duty value shall be considered for the purpose of computation of income under the head 'Profits and Gains of Business or Profession' in respect of transactions relating to land or building or both. Any deemed income, i.e., excess of stamp duty value over actual sales consideration, if any, shall be reported in new ITR Form. The Finance Act, 2013 has introduced a new section 43CA which provides that stamp duty value shall be considered for the purpose of computation of income under the head 'Profits and Gains of Business or Profession' in respect of transactions relating to land or building or both. Any deemed income, i.e., excess of stamp duty value over actual sales consideration, if any, shall be reported in new ITR Form. [ITR 4, 5, 6]
  • C. Intra-head adjustments: Details for intra-head adjustments under section 70 shall be provided along with computation of business profits under the Schedule BP. [ITR 4, 5, 6]
  • D. Income chargeable at different rates to be reported specifically [ITR 2, 3, 4, 5, 6]
  • E. Sections 10A and 10AA deductions Entities claiming exemptions under sections 10A and 10AA shall provide the relevant Assessment Years in which eligible units began manufacturing or production. [ITR 4, 5, 6]
  • Date of furnishing audit reports under sections 92E and 115JC Old ITR Forms 5 and 6 already had a column to fill in the date of furnishing of report under sections 92E and 115JC/115JB.The column is now introduced in ITR 4. Old ITR Forms 5 and 6 already had a column to fill in the date of furnishing of report under sections 92E and 115JC/115JB.The column is now introduced in ITR 4. [ITR 4]
  • Separate disclosure of sums paid to non-residents Following payments to non-residents need separate disclosure: (1) Compensation in case of non-resident employees, (2) Commi