Changes Can Be Noticed on The New ITR Forms while Filing You Return of Income:

New changes in IT return filing for FY 2013-14

The following changes can be noticed on the new ITR Forms while filing you return of Income:

1. Claiming unclaimed TDS/TCS of earlier year in the current year.
Some modification brought by government in few sections of TDS. With the new provisions assessee’s are required to deduct tax at source on cash or accrual basis, whichever is earlier. If someone is raising an invoice is also required to make advance payment of TDS. Compared to previous ITR Forms the new ITR form provide3 some feature to carry forward the excess TDS. This is a relief to such tax payers as previously they were required to disclose the entire TDS as a deduction and claim excess TDS as refund. There are 2 new columns introduced for claiming TDS in the return in the schedule TDS/TCS.

2.Provide debtors PAN for any claimed bad-debts.
It’s required to furnish PAN of the debtor, if available , responsible for bad debts of Rs. 1 lakh or more for the individuals claiming bad debts deduction in their returns.

3. Tax refunds to become faster as credit through ECS only.
In case of claiming refund the tax payers faced issues previously. The check issued by the department for any refund above Rs. 50,000. But most of the check issued were undelivered or returned back leads in delay and claiming for re-issuance of refund. In new ITR forms the option check for claiming refund completely dropped. Now
refund only be claimed through ECS.It is a big relief to individuals who do not have permanent address and to NRI’s working abroad paying excess TDS and claiming refund.

4. Corporates to provide Unique Identification Numbers issued by MCA.
To provide CIN and LLPIN in return the new forms now requires Companies and LLP’s.

5. Claiming rebate under section 87A.
The residential individual is eligible to a rebate which will be lesser of 100% of income-tax or Rs. 2,000 whose total income is not exceeding Rs. 500,000. Under section 87A the new ITR form has a provision to claim rebate.

6. Certain payment to non-residents to be disclosed separately.

Individuals to separately disclose payment made to non-residents in regard to Compensation, Commission, Royalty, Professional/consultancy fees/fee for technical services and interest, required by new ITR 4Form.

7. Private discretionary trust now to file ITR-5

The Discretionary test is a trust where discretion is there among the trustees over the use of its income and capital. Such trust to file their return of income is allows by new ITR-5 Form.

8. Cyprus Transactions to be reported
It’s required to be reported to claim any deduction on expenditure and payments made in the transaction enter with the entities in Cyprus, a non-co-operative jurisdiction.Under section 94A the new form requires prescribed information to be furnished for transactions in Cyprus.

9. Closely held company to report buy-back of shares.
The government has brought restrictions on buy-back of its shares among the closely held domestic companies according to the insertion of a new Chapter XII-DA by the finance Act 2013.According to new ITR-6 Form a schedule BBS where such companies are required to report all details to buy-back of shares during the year.

10. Advance Pricing Agreements (APA) information to be provided

An assessee entering into APA is required to furnish modified return under section 92CD and report the date of APA if return was filed under section 92CD after entering into the APA as per the Finance Act 2012. The ITR Form provides an option to file return under section 92CD.

11. New Computation of Capital Gains
The computation of Capital Gains under Schedule CG has been changed with revised computation for STCG income under section 50C for sale of land or building, section 115AD for sale of securities by FII’s and section 115A for sale of bonds or GDR’s by a non-residents.

12. Income charged at special rate to be disclosed separately
Separe disclosure of incomes charged at special rate under Schedule SI for income taxable requires by new ITR Form under Section 115AD, 115AB, 115AC, etc.

13. Sale of land and Building involving Stamp Duty Valuation to be disclosed
Under section 43CA any deemed income under the head ‘Profits and gains of Business or Profession’ on sale of land or buiding with respect to its stamp duty valuation shall be reported in the new ITR Form.

14. Expenditure made under section 36 and 37 to be reported.
Certain expenditure which is disallowed under section 36 and 37 are required to be reported in the new ITR Form.


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