{"id":57896,"date":"2022-04-26T11:15:21","date_gmt":"2022-04-26T05:45:21","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=57896"},"modified":"2022-04-26T11:15:25","modified_gmt":"2022-04-26T05:45:25","slug":"the-new-itr-form","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/the-new-itr-form\/","title":{"rendered":"Changes Made in The New ITR Form"},"content":{"rendered":"

The Central Board of Direct Taxes (CBDT) has notified a new ITR form for the Assessment Year 2022-23. The new ITR form does not meddle with the applicability of the ITR form to different taxpayers and it also does not introduce any new condition to narrow down the applicability of simple ITR forms to the existing small taxpayers. The new ITR form seeks additional disclosures with respect to the date of sale and purchase of land and building. The taxpayer needs to choose a suitable option supporting selection of his residential status. The changes in the new ITR form have been introduced because of the changes brought by Finance Act<\/strong>[1]<\/strong><\/a><\/sup>, 2021 and Taxation and Other Laws (Relaxation and Amendment<\/a> of Certain Provisions) Act, 2020.<\/p>\n\n\n\n

The following discussion analyses the changes introduced in the new ITR forms (i.e ITR 1-6) and the new requirements to be made in such forms:  <\/p>\n\n\n\n

Changes in the new ITR forms<\/h2>\n\n\n\n

The reporting of foreign assets will be made within the calendar year ending on 31st<\/sup> December<\/strong><\/p>\n\n\n\n

A change has been introduced where the expression “calendar year ending as on 31st<\/sup> December 2021” has replaced “accounting<\/a> period”. This change means that the taxpayer has to furnish details of all the foreign assets held between the period of 1st<\/sup> January 2021 till 31st<\/sup> December 2021 in returns to be filed for the assessment year 2022-23. This change has been introduced to remove the scope of confusion or miscalculation of the reporting period. No matter what the fiscal period followed by other countries, the reporting of the same needs to be made if the assets have been held on 31st<\/sup> December, 2021.<\/p>\n\n\n\n

For example an employee receives stocks as part of ESOPs from a multinational company head quartered in USA. Here:<\/p>\n\n\n\n

Situation 1<\/p>\n\n\n\n

Relevant previous year<\/td>1st<\/sup> Apr 2021- 31st<\/sup> Mar 2022<\/td><\/tr>
Relevant calendar year<\/td>1st<\/sup> Jan 2021 – 31st<\/sup> Dec 2021<\/td><\/tr>
Date of purchase of stocks<\/td>February 2021<\/td><\/tr>
Does the liability accrue<\/a> to furnish details of foreign assets?<\/td>Yes<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Here, the liability to furnish details accrues because the foreign assets have been held by the taxpayer within the calendar year of 1st<\/sup> Jan 2021 – 31st<\/sup> Dec 2021 for the assessment year of 2022-23 even if the same has been held in the relevant previous year.<\/p>\n\n\n\n

Situation 2<\/p>\n\n\n\n

Relevant previous year<\/td>1st<\/sup> Apr 2021- 31st<\/sup> Mar 2022<\/td><\/tr>
Relevant calendar year<\/td>1st<\/sup> Jan 2021 – 31st<\/sup> Dec 2021<\/td><\/tr>
Date of purchase of stocks<\/td>February 2022<\/td><\/tr>
Does the liability accrue to furnish details of foreign assets?<\/td>No<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Here, the liability does not accrue because even though the foreign assets have acquired in the relevant previous year but the same were not acquired in the relevant calendar year. These returns will be furnished in the assessment year of 2023-24.<\/p>\n\n\n\n

Schedule of Capital Gains requires additional disclosures to be made<\/strong><\/p>\n\n\n\n

The additional disclosures to be made within the schedule of Capital Gains include:<\/p>\n\n\n\n

It has been mandatory to furnish the details of the date of sale and date of purchase of any land or building if the income arising from such sale is taxable under the head of ‘Capital Gains’. The additional disclosures help tax authorities in verification of eligibility of the assessee and the allowability of exemptions under sections 54, 54EC and 54F of the Income Tax Act, 1961.<\/p>\n\n\n\n

The new ITR<\/strong><\/a> forms require furnishing the details related to the country and ZIP code of the country in cases where the property<\/a> is situated outside the country along with the details of the buyer and address of the property transferred.<\/p>\n\n\n\n

Following the amendments made in the Finance Act, 2021, the CBDT introduced a new rule 11UAE which provides that higher of the following two on the date of slump sale shall be deemed to be the Full Value of consideration:<\/p>\n\n\n\n