Recent changes in income tax forms & efiling

1,593
-1

Published on

Recent changes in income tax forms & efiling

Published in: Law, Technology, Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,593
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
47
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Recent changes in income tax forms & efiling

  1. 1. 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
  2. 2. 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]
  3. 3. 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]
  4. 4. • 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]
  5. 5. 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]
  6. 6. Buy-back of shares to be reported by closely held company [ITR 6]
  7. 7. 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]
  8. 8. 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
  9. 9. • 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
  10. 10. • 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]
  11. 11. 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]
  12. 12. 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]
  13. 13. 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]
  14. 14. D. Income chargeable at different rates to be reported specifically [ITR 2, 3, 4, 5, 6]
  15. 15. 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]
  16. 16. 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]
  17. 17. 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) Commission, (3) Royalty, (4) Professional/consultancy fees/Fee for technical services, and (5) Interest. • Old Forms of ITR 5 and ITR 6 already had this option. However, ITR 4 now seeks this information. • Following payments to non-residents need separate disclosure: (1) Compensation in case of non-resident employees, (2) Commission, (3) Royalty, (4) Professional/consultancy fees/Fee for technical services, and (5) Interest. • Old Forms of ITR 5 and ITR 6 already had this option. However, ITR 4 now seeks this information. [ITR 4]
  18. 18. Rebate under section 87A • The Finance Act, 2013 inserted section 87A which provides rebate to resident individuals whose total income does not exceed Rs. 5,00,000. The amount of rebate will be 100% of income-tax or Rs. 2,000, whichever is less. • An option is provided under new Form for availing of rebate under section 87A. • The Finance Act, 2013 inserted section 87A which provides rebate to resident individuals whose total income does not exceed Rs. 5,00,000. The amount of rebate will be 100% of income-tax or Rs. 2,000, whichever is less. • An option is provided under new Form for availing of rebate under section 87A. [ITR 1, 2, 3, 4]
  19. 19. Private discretionary trust • A 'Discretionary Trust' is a trust where trustees have discretion over the use of its income and capital. It gives trustee the power to decide which beneficiary would receive the funds and up to what extent. • In new ITR 5, a new category of 'Private discretionary trust' is included. Such trust can now file return of income in new ITR 5. • A 'Discretionary Trust' is a trust where trustees have discretion over the use of its income and capital. It gives trustee the power to decide which beneficiary would receive the funds and up to what extent. • In new ITR 5, a new category of 'Private discretionary trust' is included. Such trust can now file return of income in new ITR 5. [ITR 5]
  20. 20. Filing of Return by a Trust [ITR 7] A. Mention Registering Authority and relevant provision • In addition to name of the project/Institution and nature of activity, New ITR 7 requires trust to mention its registration no., registering authority and section number under which it is claiming exemption in respect of project or Institution being run by it. A. Mention Registering Authority and relevant provision • In addition to name of the project/Institution and nature of activity, New ITR 7 requires trust to mention its registration no., registering authority and section number under which it is claiming exemption in respect of project or Institution being run by it.
  21. 21. B. Accumulation of income for charitable or religious purpose • Where 85% of the income is not applied for charitable purposes by a trust then it has an option to accumulate or set apart such income for future application. However, trust has to file an application electronically to the AO before the due date of filing of return to avail of such option. • Such accumulation of income shall be reported by the trust in new Form ITR 7. B. Accumulation of income for charitable or religious purpose • Where 85% of the income is not applied for charitable purposes by a trust then it has an option to accumulate or set apart such income for future application. However, trust has to file an application electronically to the AO before the due date of filing of return to avail of such option. • Such accumulation of income shall be reported by the trust in new Form ITR 7.
  22. 22. C. Voluntary Contributions • A new 'Schedule VC' has been inserted in new Form ITR 7 for reporting of various voluntary donations received by the trust. Every trust shall report nature of donation along with its quantum as under: (1) Local voluntary donations (Corpus and non-corpus) (2) Foreign Contributions (Corpus and non-corpus) (3) Anonymous donation C. Voluntary Contributions • A new 'Schedule VC' has been inserted in new Form ITR 7 for reporting of various voluntary donations received by the trust. Every trust shall report nature of donation along with its quantum as under: (1) Local voluntary donations (Corpus and non-corpus) (2) Foreign Contributions (Corpus and non-corpus) (3) Anonymous donation
  23. 23. • Reference of material: [2014] 46 taxmann.com 93 (Article) By NAVEEN WADHWA CA
  24. 24. • New features introduced by Income Tax Department
  25. 25. Updating of Contact Information
  26. 26. Compliance
  27. 27. Change ITR Form Particulars
  28. 28. Provide Ack No. & Click on Submit Provide Ack No. & Click on Submit
  29. 29. You can change Bank Details, Address Details & Contact Details provided in Return of Income.
  30. 30. Any Queries
  31. 31. Thank you nmdedhia@gmail.com http://facebook.com/nmdedhia http://www.slideshare.net/NimeshDedhia
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×