The Major changes in ITR Forms for AY 2022-23

  1. The Key changes are as follows : 1. Schedule- FA( Foreign Asset) : From Accounting Year to Calendar year [ITR 2, 3, 5 & 6].
    The new ITR Forms have replaced the expression “accounting period” with “calendar year ending as on 31st December 2021 meaning thereby the assessee shall furnish the details of all foreign assets held between 01-01-2021 and 31-12-2021 in return to be filed for the assessment year 2022-23.
  2. Schedule of Capital Gains : Additional disclosures [ITR 2, 3, 5 & 6]
    A. Date of purchase and sale of land/building.

    If there is any income arising from the transfer of land or building is taxable under the head of ‘Capital Gains’.  It will be mandatory to furnish the date of purchase and date of sale of such land or building in the ITR.

B. Year-wise details of the cost of improvement to land/building:
It is required to give year-wise details of the cost of improvement (if any) incurred on the land/building transferred during the relevant year. The new ITR forms ask Cost of improvement; Year of improvement; and Cost of improvement with indexation.
C. Disclosure of Fair Market Value (FMV) of capital assets and     consideration received in a slump sale transaction:
As per amended provision of section 50B  vide  Finance Act 2021 in case of a slump sale, the Fair Market Value (FMV) of undertaking or division transferred shall be deemed as the full value of the consideration received or accruing as a result of the transfer of such capital asset.

D. Separate disclosure of cost of acquisition and indexed cost of acquisition:
Earlier the assessee was required to disclose only the indexed cost of acquisition of property transferred. Now as per new ITR Forms assesse required to mention both the ‘cost of acquisition’ and the ‘indexed cost of acquisition’

3. Schedule-OS (Other Sources).: Dividend income taxable as per section 2(22)(e) [ITR 2, 3, 5 & 6].
As per New ITR, separate disclosure is required for deemed Dividend U/s 2(22)( e) of Income Tax Act 1961

4. general Information: Nature of employment for pensioners [ITR 1 & 4].
An individual receiving pension had to choose the option of ‘Pensioners’ in Part A general Information,
Now ITR provide following option

1. Pensioners – CG,

2. Pensioners – SC,

3. Pensioners – PSU and

4. Pensioners – Others.

5. General: residential Status: More selection criteria provided to choose. [ ITR 2&3].

New ITR forms give a suitable description of different clauses due to which the residential status is determined. The assessee has to choose the relevant option in support of his selection of a residential status.

6. Audit Information: Additional information sought from the assessee not opting for the presumptive tax scheme [ ITR 3,5 &6]
in new ITR Form The following additional disclosures are required regarding Audit Information:

Whether total sales, turnover or gross receipt is between Rs. 1 crore and Rs. 10 crores. If not, is it below Rs. 1 crore or exceeds Rs. 10 crores?

The new ITR forms require aggregation of receipts and payment in cash and non-account payee cheque or DD while computing the limit of 5% as mentioned above.

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