Key Updates in the Latest Income Tax Return (ITR) Forms for FY 2023-24
The latest ITR forms for FY 2023-24 include 17 significant changes. Here’s a summary of the major updates:
1. Filing Deadlines
New columns in ITR Forms 3, 5, and 6 now require taxpayers to specify their applicable filing deadlines: July 31, October 31, or November 30.
2. Taxation of Online Gaming Winnings
Schedule OS has been updated to include the reporting of online gaming income in Forms ITR 2, 3, 5, and 6.
3. Adjustment of Unabsorbed Depreciation
ITR Forms 3 and 5 now allow adjustments for unabsorbed depreciation under updated provisions.
4. Mandatory LEI Disclosure
For refunds exceeding INR 50 crores, disclosing the Legal Entity Identifier (LEI) is now required in ITR Forms 2, 3, 5, and 6.
5. Political Contributions Disclosure
Schedule 80GGC in Forms ITR 2, 3, 5, and 6 now mandates detailed disclosures for contributions to political parties.
6. Cash Receipts Reporting
A new column in Forms ITR 3, 4, and 5 allows reporting of cash receipts to claim enhanced turnover limits.
7. Start-up Deduction Details
New schedules have been introduced for deductions under Sections 80-IAC and 80LA in ITR Forms 5 and 6.
8. Dividend Income Tax Rate Adjustment
Dividend income from units in an International Financial Services Centre (IFSC) is now taxed at 10% instead of 20%, updated in Schedule OS of Forms ITR 2, 3, 5, and 6.
9. Enhanced ESOP Reporting
Forms ITR 2 and 3 now require PAN and DPIIT registration numbers for Employee Stock Option Plans (ESOP) reporting.
10. EVC for Tax Audit Verification
Individuals and HUFs filing ITR 3 under tax audits can now verify returns using the Electronic Verification Code (EVC).
11. Additional Tax Audit Details
ITR Forms 3, 5, and 6 require audited companies to provide more details about the reasons for undergoing tax audits.
12. Business Trust Income Reporting
A new column under Schedule OS in Forms ITR 2, 3, and 5 allows unit holders to report sums received from business trusts.
13. Bank Account Disclosure
Taxpayers must disclose all non-dormant bank accounts held in Forms ITR 2, 3, and 5.
14. Capital Gains Account Scheme (CGAS) Reporting
Detailed reporting of deposits in the CGAS is now mandatory in Forms ITR 2, 3, 5, and 6.
15. Section 80CCH Deductions
A new column in Forms ITR 1, 2, 3, and 4 allows deductions under Section 80CCH for contributions to the Agniveer Corpus Fund.
16. New Schedule 80U
Introduced in Form ITR 3, Schedule 80U facilitates claiming deductions for persons with disabilities.
17. Schedule 80DD for Dependents
Forms ITR 2 and 3 now include Schedule 80DD for deductions related to the maintenance and medical treatment of dependents with disabilities.
These updates aim to enhance transparency, streamline compliance, and accommodate new tax provisions effectively.
