Greetings of the day ! I guess useful for AY 2014-15 Income Tax return filers. CA Gaurav Arora

1. 15 key changes in AY 2014-15
Income Tax Return (ITR) forms
Arora Gaurav A &
Associates
C H A R T E R E D A C C O U N T A N T S
_________________________________________________________________________________
________

2. 1.
Unclaimed Credit of Taxes Deducted at Source (TDS) / Taxes
Collected at Source (TCS) Brought Forward and Carried Forward:
Unclaimed Credit of Taxes Deducted at Source (TDS) / Taxes Collected at
Source (TCS) Brought Forward and Carried Forward: Taxpayers are required to
disclose information in respect of TDS / TCS in specified schedules in the tax
returns. Earlier, there was no mechanism to carry forward the TDS / TCS that
was not pertaining to the given tax year. However, the new forms provide for
details to be entered in respect of unclaimed TDS / TCS of the earlier tax
year(s) and unclaimed TDS/TCS of the present tax year to be carried forward to
the subsequent year
FOR INDIVIDUALS/NON-CORPORATE

3. 2.
Direct Credit of Tax Refund:
Earlier, taxpayers were given an option to claim refund through cheque or
credit into bank account. With an intention to expedite and align the refund
process with process applicable to the corporate taxpayers, the new forms have
done away with such an option of claiming refund through cheque.
Accordingly, going forward, all taxpayers will now receive the legitimate tax
refunds directly into their bank account.
FOR INDIVIDUALS/NON-CORPORATE

4. 3.
Computation of Income from Capital Gains
The forms provide an upgraded new schedule for computing gains arising from
transfer of capital assets in each of the prescribed categories. Additionally,
information in respect of intra head adjustments of capital loss also needs to be
disclosed in the newly prescribed form.
4.
Additional Debtor wise Information for Bad Debts:
Non-corporate taxpayers claiming deduction in respect of bad debts are now
required to disclose in their tax return the PAN number of every debtor whose
quantum of bad debt exceeds INR 0.1 million. Earlier, such disclosure
requirement was applicable to corporate taxpayers, firms, association of
persons, body of individuals, co-operative societies and local authorities.
FOR INDIVIDUALS/NON-CORPORATE

5. 5.
Intra Head Adjustments:
A taxpayer is entitled to set off loss from one source with the income from
another source falling within the same head. In the newly prescribed forms,
information in respect of intra head loss adjustment is required to be
furnished.
6.
Date of Furnishing Report: Disclosing the information in respect of the
date of furnishing the following.
Form 3CEB (in case of taxpayers having international transaction with
associated enterprises) and / or 2. Form 20B / 29C (in case of taxpayer paying
tax on books profits or adjusted total income)
has now being extended to non-corporate taxpayers as well. Thus, all taxpayers
will need to provide the date of furnishing of aforesaid forms in the newly
prescribed tax return forms.
FOR INDIVIDUALS/NON-CORPORATE

6. 7.
Transaction(s) with Notified Jurisdictions: Recently, the Central
Government has notified Cyprus as a notified jurisdictional area. As a
consequence to this notification, all taxpayers will have to report any
transaction(s) entered with Cyprus in the new forms.
8.
Unique Identification Number: Every corporate taxpayer and Limited
Liability Partnership has been provided with a unique Corporate Identity
Number by the Ministry of Corporate Affairs ('MCA'). The aforesaid taxpayers
will now have to mention such unique number in the new prescribed forms.
Additionally, the aforesaid taxpayers will have to provide the information in
respect of the Director Identification Number or Designated Partner
Identification Number (issued to each director and partner by the MCA) in the
newly prescribed forms apart from their PAN and other information such as
their name, designation and residential address.
FOR CORPORATES

7. 9.
Buy Back of Unlisted Shares by the Indian Corporate Taxpayer:
The Finance Act 2013 enlarged the scope of taxation by levying distribution tax
on Indian corporate taxpayer(s) buying back its unlisted shares. Accordingly, a
schedule has been inserted in the newly prescribed forms which mandate
Indian corporate taxpayer(s) to disclose necessary information in respect of
buy back of unlisted shares and tax paid thereon.
10.
Tax on Book Profit for Specified Corporate Taxpayer:
The Finance Act 2012 extended the provisions relating to tax on book profit to
specified corporate taxpayers (engaged in Insurance, Electricity and Banking
sectors) even though the financial statements are not prepared on the basis of
Schedule VI of the Companies Act, 1956. Accordingly, in the newly prescribed
forms, the classification in respect of aforesaid specified corporate taxpayer has
been inserted.
FOR CORPORATES

8. 11.
Advance Pricing Agreement (APA):
Every taxpayer who has entered into an APA is required to provide the
information in respect of date of entering into the APA in the newly prescribed
form.
12.
Non-Deductible Business Expenditure:
In the newly prescribed forms, information in respect of the following non-
deductible business expenditure has been inserted, namely:
FOR CORPORATES

9. 13.
Deeming Business Income:
The Finance Act 2013 provided that in computing business income from
transfer of land or building (not being capital assets), stamp duty ready
reckoner value should be adopted in case the actual transaction value is less
than the former. The newly prescribed forms provide disclosure in respect of
such ready reckoner value which exceeds the actual transaction value.
14.
Units in Free Trade Zones / Special Economic Zones:
Taxpayer(s) claiming exemption in respect of units in Free trade zones /
Special economic zones shall provide the information in respect of the relevant
tax year in which the eligible unit commenced manufacturing / producing
specified articles along with the amount of exemption claimed in the newly
prescribed forms.
FOR CORPORATES

10. 15. Payments to Non-Residents:
Disclosing the information in respect of specified payments to non-residents
has now being extended to all taxpayers including non-corporate taxpayers.
Accordingly the following specified payments
1. Compensation to non-resident employees,
2. Commission,
3. Royalty,
4. Professional fees,
5. Fees for technical services and
6. Interest
will have to be separately disclosed in the newly prescribed forms.
FOR CORPORATES

11. Arora Gaurav A & Associates
C H A R T E R E D A C C O U N T A N T S
___________________________________________________________________________________
T H A N K S
Office : C-12-B, 1st Flr, Madhu Vihar,
I.P.Extn, New Delhi-110092, India
Web- www.aga.net.in,
E- info@aga.net.in,
T- 91 11 43049814