With the Income Tax filing season on, taxpayers are in a hurry to file the tax returns. If you are also among one who will be filling up the tax returns, However, compared to the previous fiscal, a few changes have been made to the ITR forms this year which taxpayers should know before filing your income tax return.
So, let’s look into the key changes made in this year’s ITR forms.
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Income from crypto currencies, Non-Fungible Tokens and other Virtual Digital Assets (VDAs)
According to a report from The Economic Times, for this assessment year, specific provisions have been introduced in the Income Tax act where taxes will be imposed on income from Virtual Digital Assets, according to experts in the area.
The taxpayers will have to indicate whether income from VDA is to be categorised as business income or capital gains and accordingly disclose the same under the relevant head of income.
In case of income earned from cryptocurrencies during FY 2022-23, few changes have been made to the ITR forms this year. Taxpayers should be aware of this, before starting to file. This includes date of acquisition, date of transfer, cost of acquisition, date of transfer, cost of acquisition and sale proceeds.
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Form 26AS and AIS should also be checked by taxpayers to ensure that income from VDAs in respect for which tax has been deducted under the newly introduced section 194S has been included in the return of income.
Disclosure of Donation Reference Number (ARN) in case of donation eligible under deduction under 80GThe Economic Times report mentioned that in case of donations made which are eligible for tax deduction under 80G, the Donation Reference number must be mentioned in case where a 50 per cent deduction is allowed, subject to the qualifying limit.
Other Changes
In case if Tax Collected at Source (TCS) is collected by the bank, on making remittances under the Liberalised Remittance Scheme, the taxpayer is eligible to claim such TCS as a credit/set off against his income tax in his ITR.
However, in certain cases, taxpayers would be able to claim credit of TCS relating to another person against the taxpayer’s tax liability.
Individuals who are Indian residents have the option to defer tax in respect of income earned on foreign retirement benefits account from the year of accrual to the year of withdrawal from the account [Section 89 A relief]. However in case of non-resident taxpayer, income on which relief was claimed under section 89A in earlier years would be taxable in the hands of the taxpayer.
