Changes in ITR Forms FY 2021-22

S.No.

Particulars

Change in new ITR Form

ITR Forms

1.

Clarification regarding ‘relevant accounting period’ while submitting the details “FA requires reporting of foreign assets held and foreign income earned during the relevant accounting period.”

CBDT clarifies the meaning of the term “accounting period,” and the new ITR Forms have replaced the term “accounting period” with “calendar year ending as on 31st December 2021”.

For example,

1. Considering AY 2021-22, the accounting period is from 1st January 2020 to 31st December 2020.

2. If the relevant previous year (India) is 01.04.2021 to 31.03.2022 and the relevant calendar year (foreign country) is 01.01.2021 to 31.12.2022.

The date of purchase of a foreign asset is January 2022; then, no need to report the same.

The assessee has to give disclosure in the AY 2023-24 only.

ITR 2,3,5,6

2.

Additional disclosures in the Schedule of Capital Gains

1. Sale and purchase date of land/building

2. If the property is situated in a foreign country, the address details, i.e., Country and Zip Code

3. Disclosure of FMV (as per rule 11UAE) of capital assets and consideration received in a slump sale transaction

4. details of the cost of improvement to land and building  year wise

5. Separate disclosure of the cost of acquisition and indexed cost of acquisition

ITR 2,3,5,6

3.

Deduction in respect of capital gains charged under Section 45(4), attributable to assets, remained with the firm.

Assessee has to disclose the deduction allowable under Section 48(iii) in respect of the capital gains charged to tax under section 45(4), which is attributable to the capital asset remaining with the firm.

ITR 5

4.

Dividend income taxable as per section 2(22)(e) to be reported separately

Separate reporting of dividend income taxable under section 2(22)(e)

ITR 2,3,5,6

5.

Disclosures in respect of Significant Economic Presence (SEP)

The non-resident has to confirm

·         About Significant Economic Presence in India or not – Yes/No

·         If yes, then the assessee has to disclose further details.

ITR 3,5,6

6.

Reporting of interest accrued on Provident Fund to which no exemption is available

Amendment has been made in OS (Other Sources) schedule for reporting the requirement of interest income under sections 10(11) and 10(12).

ITR 2,3

7.

Adjustment of unabsorbed depreciation from WDV of the block of assets as on 01-04-2020

Amendment in schedule DPM (Plant and

Machinery).

As per the amendment, If the assessee has opted for section 115BAC, then the WDV of the block as on 01-04-2020 shall be increased by the amount of unabsorbed depreciation (pertaining to additional depreciation.

ITR 3,6, 5

8.

A New Schedule has been inserted for reporting tax-deferred on ESOP

The New ITR Forms have inserted a “Schedule: Tax-Deferred on ESOP” that requires details with respect to stock option benefits provided by eligible start-ups.

ITR 2,3

9.

Relief under Section 89A from taxation in income from retirement benefits account maintained in a notified country.

Under the schedule of Income from Salary, additional disclosure for income from overseas retirement benefit accounts maintained is required.

ITR 1,2,3,4

10.

Disclosure of interest income taxable at a concessional rate of 4% under Section 194LC

Schedule OS (Other Sources) required to disclose the interest referred to in Section 194LC

ITR 6

11.

Separate disclosure of Income from Units located in IFSC in Schedule AMT

Under the ‘Schedule AMT,’ the assessee has to make separate disclosure of computation of adjusted total income under Section 115JC in respect of:

(a) Units located in IFSC; and

(b) Other Units.

ITR 3,5

12.

Schedule 80GGA has been inserted for the partners deriving only profit from the firm

New Schedule 80GGA (Details of donations for scientific research or rural development) has been inserted.

ITR 3

13.

Total secondary adjustments made to be disclosed

Under the Schedule TPSA, the assessee needs to disclose the total adjustments made regarding all the assessment years.

ITR 3,5,6

14.

Disclosure of interest paid to Deposit-taking NBFCs or Systemically Important

Non-deposit Taking NBFCs

Under the part A-OI, “Other Information,” the assessee required to disclose the amount of the following that were disallowed in the earlier years but are now allowable during the previous year:

·         Interest on any loan or advances from Deposit-taking NBFCs  or

·         Systemically Important Non-deposit Taking NBFCs.

ITR 3,5,6

15.

Additional disclosure required of income exempt under certain clauses of Section 10

Separate disclosure of the following income in Schedule EI (Details of Exempt Income), including Sections 10(23FB), 10(23FBA), 10(23FC), 10(23FCA), 10(23FE), 10(23FF), 10(4D).

ITR 5, 6

16.

Separate disclosure is required of interest and dividend incomes taxable under Section 115AC

Separate disclosure is required under ‘Schedule SI’ of the following income received by non-residents taxable under Section 115AC:

(a) Interest income from bonds purchased in foreign currency; and

(b) Dividend income from GDRs purchased in foreign currency.

ITR 3,5,6

17.

New Schedule IF inserted to seek the disclosure of investment made in unincorporated entity

New Schedule IF (Information regarding investment in unincorporated entities) requires the disclosure of the investment made in the unincorporated entity.

ITR 6

18.

Other disclosures

Disclosure for alternative tax regime opted  under Sections

·         115BAC

·         115BA/115BAA/115BAB

·         115BAD

·         Additional information if the assessee is not opting for the presumptive tax scheme

·         Mandatory to choose the suitable option in support of residential status in India

ITR 3, 4

ITR 6

ITR 5

ITR 3,5, 6

ITR 2,3