RTI Filing: Changes to New Tax Return Forms for AY 2022-23


Although overall there are no major changes introduced this year, some additional information is requested from taxpayers in the new tax return forms.

Let’s take a look at some of these changes in the new tax return forms.

Additional categories for the Retired column

In the ITR-1 form, which applies to persons receiving wage income, under the nature of employment category, the column for retirees has been subdivided into central, state, public sector enterprises and other.

New Tax Regime – Declaration Details

In the case of ITR-3 and ITR-4, details must be provided as to whether you have opted for a new tax regime under Section 115BAC and completed Form No. 10IE in AY 2021 -22 or not.

In the case of the current assessment year, you can choose the option “Enroll now”, “Unenroll” or “Continue unenrolling”. You must provide details of the Form No. 10IE filing date and the Acknowledgment Number (generated after the Form No. 10IE is filed).

Additional information for companies to verify audit applicability

In the case of a flat-rate tax scheme, information relating to “if the assessed person declares income only under articles 44E, 44B, 44BB, 44AD, 44ADA, 44BBA” must be specified.

If your answer is ‘No’ then you will have to answer as below-

  • If the total sales or turnover of the business during the year is between Rs 1 crore and Rs 10 crore.
  • Otherwise, the turnover is less than Rs 1 crore, or it exceeds Rs 10 crore

If you tick “Yes” for the total sales or turnover between Rs 1 crore and Rs 10 crore, you will be asked to answer two more questions, i.e. you must indicate whether-

  • the accumulation of all amounts received (sales, turnover, capital contributions, loans, etc.) in cash/cheque beneficiary non a/c/DD during the previous year does not exceed 5% of the total total revenue,
  • the total of all payments made (amount committed for expenses, acquisition of assets, repayment of loans, etc.) in cash/check beneficiary non-a/c/DD during the previous year does not exceed not 5% of total total payments.

These questions must be answered to verify the applicability of your audit. Audit under Section 44AB of the IT Act is mandatory if the total sales or gross receipts of the business in the previous year exceeds Rs 1 crore. However, if the collection and payment do not exceed 5%, the audit is mandatory if the turnover of the assessed company exceeds 10 million rupees during the financial year.

Changes in the capital gains scale

Next, under Schedule CG (Capital Gains), if you sold land or building in a particular financial year, you must provide details of the date of purchase/acquisition or date of sale/ transfer. Also, the Permanent Account Number (PAN) and Aadhaar details of buyers of a property should be provided.

You must provide details of the original acquisition cost and the indexed acquisition cost. This is not the case before when you only had to provide an indexed acquisition cost of the asset.

In the event that renovations or improvements have been made to the property, annual details of the cost of the improvements must be provided when filing the new ITR form.

Changes to the schedule of income from other sources

In addition, in Schedule OS (income from other sources), new categories have been incorporated which relate to income deemed to be dividends under Article 2(22)(e).

To understand Section 2(22)(e) of the Income Tax Act 1961 (ITA), consider a corporation and a shareholder who is the beneficial owner of 10% or more of the equity shares. If the company makes a loan or prepayment to such a shareholder, this is considered a deemed dividend under Article 2(22)(e). Previously, it was not possible to declare such a dividend separately.

Then, in the case of a provident fund, if an individual makes a contribution of more than Rs 2.5 lakh in any given year, the accrued interest on that contribution will be taxable. This has been effective since April 1, 2021.

New tax return form (RTI-U)

A new updated tax return form (ITR-U) has been introduced, whereby it is now possible to update your tax return for the last two years.

However, ITR-U should not be filed in the event that a nil return is to be filed, a loss carryforward, a TDS refund claim, or a reduction in tax payable from previous years. To file ITR-U, you must disclose the amount of additional income under prescribed income headings and pay additional tax with interest (25%/50% of tax due) via challan.

A few reasons for filing an ITR-U could be related to an unfiled tax return, incorrectly reported income, wrong heads of income chosen, reduction of deferred loss or amortization, reduction of a tax credit and the selection of bad tax rates.

In case of confusion related to the filing of tax returns, it is advisable to contact tax specialists to avoid any problems in the future.

(The author is Founder and CEO, Clear)

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