Recent changes in income tax forms & efiling

1. Recent Changes in Income Tax
Forms & Efiling
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Organised by:
Dahisar CPE Study Circle of WIRC of ICAI
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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. 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. 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. • 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. 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. Buy-back of shares to be reported by
closely held company
[ITR 6]

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. 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. • 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. • 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. 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. 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. 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. D. Income chargeable at different rates to be
reported specifically
[ITR 2, 3, 4, 5, 6]

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. 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. 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. 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. 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. 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. 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. 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. • Reference of material:
[2014] 46 taxmann.com 93 (Article) By
NAVEEN WADHWA CA

24. • New features introduced by Income Tax
Department

25. Updating of Contact Information

26. Compliance

27. Change ITR Form Particulars

28. Provide Ack No. &
Click on Submit
Provide Ack No. &
Click on Submit

29. You can change Bank Details, Address Details & Contact Details provided in
Return of Income.

31. Any Queries

32. Thank you
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