The Central Board of Direct Taxation (CBDT) had notified new revenue tax return types — ITR-1 to ITR-7 — for the evaluation 12 months 2021-22. On the time of notification, the tax physique talked about that no vital modifications have been made this 12 months due to the pandemic, however sure small modifications have been included within the types.
Listed here are the important thing modifications to notice for taxpayers
Disclosure of dividend revenue: As per the report in Mint, the dividend revenue must be disclosed beneath “revenue from different sources”. It’s to be famous that dividends have been made taxable within the arms of the taxpayers within the Finance Act, 2020, as an alternative of dividend distribution tax to be deducted by the corporate or fee or declaration of dividend.
In accordance with tax analysis agency Taxmann be aware talked about within the Mint report, till AY21, solely dividend revenue that was not exempt was required to be disclosed within the part ‘revenue from different sources’. However now all forms of dividend incomes must be disclosed within the type.
Such incomes beneath the exempt revenue part must be talked about. Earlier, dividend revenue as much as Rs 10 lakh was exempted from tax beneath Part 10(34). The reference to dividend revenue as much as Rs 10 lakh from a home agency has been faraway from the exempt revenue part.
New tax regime: Beneath Part 115BAC, the federal government had launched a brand new concessional tax regime in FY20 giving choice to taxpayer to pay tax at decrease slab charges however solely after forgoing 70 deductions. Now, the taxpayer can selected to go for the concessional tax regime beneath Part 115BAC in Half A of the tax types.
Additionally, be aware that the Excel and Java variations of ITR utilities won’t be accessible as of AY 2021-22. Nevertheless, JSON as an alternative choice to the Excel and Java variations of ITR utilities will probably be accessible. For now ITR-1 and ITR-4 have this Offline Utility accessible however sooner or later different ITRs will probably be included as nicely. The utility constructed on the most recent JSON expertise can import and pre-fill information from the e-filing portal.