1. A major change divides capital gains into two periods, including the period before July 23, 2024 and then after it. This is as per the amendment made in the Finance Act 2024. With the help of this change, companies will be able to adjust their tax calculations based on the revised capital gains tax regime applicable in the middle of the year.

2. Now companies will also be able to claim capital losses on share buyback. The only condition is that the related dividend income should be reported under ‘Income from other sources’ after October 1, 2024. The purpose of this provision is to provide a clear picture for the forms involved in the buyback transaction. Tax experts say that this move will encourage more transparent reporting.

3. The CBDT has also introduced a presumptive taxation rule for non-resident cruise ship operators under section 44BBC, under which 20% of passenger carriage receipts will be treated as taxable profit.

4. Foreign companies selling rough diamonds in designated special areas will now operate under the safe harbour rule (Rule 10TIA), which requires a profit margin of at least 4% on gross receipts. The measure, which comes into effect from April 1, 2024, is aimed at simplifying transfer pricing for the diamond sector.

5. Reporting now also includes mandatory disclosure of TDS section code in Schedule-TDS and deduction claimed under section 24(b) for home loans, reflecting the government’s effort towards income tracking.

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ITR forms came in February after the last budget presentation.

The government had issued this notification on 22 December itself. Last time the government released ITR forms in February 2023 after presenting the budget. The current financial year will end on 31 March 2023.

It says that tax payers will find it difficult to calculate their income from now on. But, this ITR-1 is for those people whose total income from all sources will not exceed Rs 50 lakh.

The post New ITR Form: CBDT releases income tax return form for financial year 2023-24 first appeared on Rightsofemployees.com.

The last date for filing income tax return for the financial year 2022-23 is 31 July 2023. If you also want to avoid penalty, then you must file your ITR on time. You can file your return through the official website of the Income Tax Department. However, this time some changes have been made by the department as compared to last year. In such a situation, if you are filing your ITR, then you should know about them. Let us see at a glance about the changes related to the ITR form.

Income from Virtual Digital Assets (VDA)

The Income Tax Act has a provision to tax income from virtual digital assets from April 1, 2022. TDS will be levied under section 194S on transactions related to cryptocurrency. The ITR form for income from VDA has been revised. Taxpayers will have to give information about their income from VDA. This includes date of purchase, date of transfer, cost and sale proceeds.

ARN details for claiming 80G

A person making a donation during the financial year 2022-23 is eligible for deduction under section 80G. From this time onwards, the donor will have to give the ARN number of the donation in the ITR form. This is applicable for donations where 50% deduction is allowed.

TCS and relief under section 89A

Taxpayers can claim Tax Collection at Source (TCS) against their payable income tax. Apart from this, if a taxpayer has claimed relief under section 89A and later he ceases to be a resident, then details of taxable income from that relief will have to be given in the ITR form.

Foreign Institutional Investor (FII) Information

ITR forms for FY 2022-23 will require more information than before, such as balance sheet information for ITR-3 and SEBI registration number for taxpayers registered with SEBI as Foreign Institutional Investors (FIIs). It is necessary to do.

Disclosure on Intraday Trading

The newly introduced ‘Trading Account’ section in the ITR form will require reporting of turnover and income from intraday trading. This time before filing ITR, you must be aware of all the above mentioned things. If any of these is of use to you, then keep it in mind while filing ITR.

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New ITR Form: The Modi government has given many facilities to income taxpayers in this budget and has also increased monitoring in some places. Many changes have been made in the new Income Tax Return Form issued by the Central Board of Direct Taxes (CBDT).

In this, many more information related to cryptocurrency to stock market will have to be disclosed. Overall, now the Income Tax Department will keep an eye on your every expenditure and investment and a slight mistake can be huge. However, there has not been much change for individual taxpayers in the new form.

This time the Central Board of Direct Taxes notified the income tax return form very early, so that later taxpayers do not have to face the rush in filling ITR. Earlier, the ITR form used to come usually by May-June, due to which a huge crowd of returnees gathered in July and technical difficulties had to be faced.

This time, due to the early arrival of the form, taxpayers can fill the return from April 1, as soon as the financial year ends. CBDT has fixed the last date for filing returns as July 31, 2023 only.

Now these revelations will have to be done (5 points)

• In The New ITR Form, Intraday Trading In The Stock Market Will Have To Be Shown Separately, Which Will Include Your Total Turnover And Profit From It.
• Donation Given To A Trust Has Been Exempted Under Section 80G Of Income Tax, So Now The Donor Will Have To Enter A Unique Number.
• If The Deducted TCS Is Related To Any Other Person, To Whom You Have To Transfer, Then Now It Has To Be Shown In The Return Form As Well.
• Traders Will Now Have To Give Information About The Selected Regime, So That It Can Be Prevented From Going Back To The New Regime.
• If You Invest In Crypto, Then The Profit Or Loss Due To This Will Also Have To Be Told In The Return.

Special rule for partner firm also (5 points)

• In The New Return Form, If A Partnership Firm Has Added A New Partner Or The Old One Has Retired, Then It Will Also Have To Be Informed And The Date Of Change Will Also Have To Be Mentioned.
• If You Have Taken Advance From Relatives Or Friends, Then Its Information Will Also Be Included In Your Income Tax Return Form.
• The Information About The Investments Made In The Past Of A Trust Will Also Be Included In The Return Form.
• It Has Also Become Necessary To Disclose The Secret Donation Received By The Trust. Tax Will Be Levied On This Amount In Excess Of The Prescribed Amount.
• Political Parties Receiving Donations Will Now Have To Disclose The Recognition Received From The Election Commission In The Return Form As Well.

Tax on digital assets (3 points)

• Apart From Crypto, If You Buy Or Sell NFT Or Other Virtual Assets, Then That Information Will Also Have To Be Given In ITR.
• Taxpayers Who Had Earlier Adopted The New Regime Will Now Have To Give This Information In The ITR.
• Those Who Have Invested Money In Foreign Markets Or With Institutional Investors Will Also Have To Show It In ITR.

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