CA Pratibha Goyal | Apr 5, 2021 |
Changes in new ITR Forms for AY 2021-22
CBDT has released new ITR Forms vide Notification Number 21/2021 dated April 1, 2021.
This article discusses changes in new ITR [Income Tax Return] Forms released by the Central Board of Direct Taxes [CBDT] for AY 2021-22 or FY 2020-21.
If an Employee of Eligible Startup u/s has received ESOPs and Taxliability on same has been deferred, then ITR-1 cannot be filed. The same shall be shown in ITR-2 or ITR-3.
Tax under section 194N is required to be deducted if the amount of cash withdrawn during the year exceeds Rs. 20 lakhs in the case of certain non-filers of ITR and Rs 1 crore in other cases.
Any Tax Payer, whose TDS has been deducted under section 194N cannot File ITR-1.
TDS under section 194N is not related to the income of the taxpayer. It is related to cash withdrawal during the year. Thus no, option to carry forward TDS has been provided in the Forms.
Change has been made in ITR-2 to ITR-7 Accordingly.
ITR Forms have been amended to provide for Surcharge computed before marginal relief and Surcharge after marginal relief.
As we know the Tax Audit Limit has been increased to Rs. 10Cr from Rs. 5Cr by Finance Act 2021 where:
(a) the aggregate sales, in cash, does not exceed 5% of total sales; and
(b) the aggregate payments, in cash, does not exceed 5% of total payment.
Accordingly, the ITR Forms for AY 2021-22 have been amended to account for the same.
A taxpayer opting to take benefit of Section 115BAC or Section 115BAD:
However, as a one-time relief, the taxpayer is allowed to increase the WDV of the block of an asset by the amount of the unabsorbed depreciation if he opts for this tax regime in AY 2021-22. Accordingly, the ITR Forms have been amended.
A taxpayer opting to take benefit of Section 115BAC or Section 115BAD:
Accordingly, the ITR Forms have been amended for the same for taxpayers opting for this tax regime in AY 2021-22.
As per Section 80M introduced by Finance Act 2020:
During FY 2019-20, the due date for claiming deduction under Chapter VI-A, section 10AA, and section 54 to 54GB was extended till 30-06-2020. This was benefit given at the time of lockdown.
Now this schedule DI for reporting such investments has been Deleted.
The ITR forms notified for Assessment year 2021-2022 require additional disclosures of the date on which such cash donation has been made.
The ITR forms notified for Assessment Year 2021-2022 have removed such separate reporting requirements in respect of income from the life insurance business in Schedule BP.
Now Nature of the business code is to be mentioned if the assessee is claiming deduction under section 80P.
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