CBDT has recently notified ITR form for the financial year 2021-22. However, income for different taxpayer categories Tax (INCOME TAX) Return (ITR) Forms have not been changed but some additional details have been added. If you make these changes (ITR CHANGES)You may have difficulty filling out the form if you are not familiar with.
Ashish is an honest taxpayer. Every year he earns his ITR Shows and pays full tax accordingly. Ashish also invests in crypto. The government has recently imposed a hefty tax on crypto and now Ashish is worried. Will the earnings made in crypto in the financial year 2021-22 also have to be disclosed in the income tax return? Ashish is confused about this. Ashish also wants to know if he has to mention the expenses incurred on home renovation in ITR...?
Not only Ashish but there are many taxpayers like him who want to know about these new changes in ITR form. CBDT is currently the financial year ITR forms have been notified for 2021-22. However, the ITR forms for the different categories of taxpayer have not been changed but some additional details have been included. If you are not aware of these changes, you may have difficulty filling out the form. So let us know some essential things.
Schedule FA requires any taxpayer to disclose foreign assets. According to Article FA of the new ITR Forms, if any person has foreign assets at any time during the calendar year ending December 31, 2021, he must disclose it. If any property was first purchased in January 2022, it is necessary to provide the information for the financial year 2021-22 but this information has to be provided for the next year i.e. for the financial year 2022-23.
According to chartered accountant and tax expert Sunil Garg, reporting of foreign assets has been shifted from accounting year to calendar year. In fact, most countries consider the accounting year to be January to December. In India it is April to March. So now it is considered as the rest of the countries. This is an important step. This will bring relief to the people. Only Indian nationals and foreign nationals who have resided in India for 182 days or more and obtained Indian citizenship as a result will have to disclose their foreign assets.
In order to reduce the tax burden on startup employees’ Aesops i.e. Employee Stock Ownership Plan, the Finance Act, in 2020, arranged for TDS to be levied on additional benefits incurred on Aesops.
The new ITR forms provide a schedule for providing details of such later taxes. This time when filling the ITR form the employee has to state the amount of such tax.
The taxpayer will have to provide details like the amount of tax to be paid later in the financial year 2020-21, the tax due in 2021-22, the last date of work in the company, the amount of tax to be paid late next year.
This will allow the income tax authorities to monitor the year in which the deferred tax is actually due.
Previously, withdrawals from foreign retirement funds as non-resident funds were tax-based on the bill. This made it difficult for taxpayers to claim a foreign tax credit for taxes paid abroad.
The new ITR forms have been researched in the details of Section S i.e. salary related income in which the taxpayer will get relief in paying tax under Section 89-A.
The new ITR forms will have to disclose the capital gains in the section relating to land and building. It includes the date of purchase or sale, year of renovation. Also have to state the purchase and indexation cost.
One section also expressed concern about the lack of special clauses in the new ITR forms to provide information on cryptocurrency revenue. The new fiscal year 2022-23 will be the first year of the crypto-linked tax system, so ITR forms for 2022-23 may have provisions for this.
Sunil Garg says, “Fiscal year Individuals earning from crypto will have to pay tax under general provision in 2021-22. However, it would be better to show him only the earnings from other sources. “
Improvements in new ITR forms in the new financial year
- Schedule FA: Connected to foreign asset information held in calendar year 2021
- The new ITR form asks you to calculate the tax on the unaccounted value of Aesops in the assessment year in which the shares have been allotted.
- Article Section-S was amended to allow tax relief under 89-A
- Clause relating to land and building requires additional declaration of capital gain
- Fiscal year Provision for disclosure of crypto income in ITR form for 2022-23
Money 9 advice
When you fill out the ITR form in the future, you will need to disclose other disclosures, including Foreign Assets, Tax on Aesop, Capital Gains, and Crypto. Also make sure that you enter the new additional details you need into the ITR properly.
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