Recently the Union Finance Minister Smt. Nirmala Sitaraman has announced the INR 20 lakh crore economic package to the country wherein the due dates for filing the income tax returns for the AY 2020-21 have also been extended to 30 November 2020. Now the Central Board of Direct Taxes (‘CBDT’) has notified the fresh income tax return forms for the assessment year 2020-21 vide notification no. G.S.R. 338(E) dated 29 May 2020. For the ease of reference, the brief areas where updating have taken place are discussed below-
A one-time relief has been provided by the Government of India wherein the assessee can make the investments up to 30 June 2020 for claiming deductions under chapter VI-A pertaining to the AY 2020-21. Now the forms recently notified have amended to cover the impact of the above relaxation and the assessee can report the investments made in the eligible schemes up to 30 June 2020.
In cases where there is an income from house property, there was a requirement to provide the PAN of the Co-owner and/or Tenants. Now the utilities have been amended to provide an option to report Aadhar instead of PAN for the above two i.e., co-owner and tenant.
The Government of India has introduced the Taxation (Amendment) Ordinance 2019 on the 20th of September 2019. The new section – Section 115BAA has been inserted in the Income Tax Act, 1961 to give the benefit of a reduced corporate tax rate for the domestic companies. Section 115BAA states that domestic companies have the option to pay tax at a rate of 22% from the FY 2019-20 (AY 2020-21) onwards if such domestic companies adhere to certain conditions specified. Further a domestic manufacturing company satisfying some specified conditions can claim the benefit of section 115BAB. The benefit is available from the financial year 2019-20 (AY 2020-21). The recently notified forms have been modified to give assessees an option to opt for the concessional taxation schemes u/s 115 BAA or 115 BAB.
New forms seek details regarding cash deposit in current account exceeding rupees one crore, foreign travel expenditure exceeding rupees two lakh and electricity consumption charges exceeding rupees one lakh.
The CBDT vide notification no. 69/2019-Income Tax dated 20 September 2019 introduced new rates of depreciation on motor cars acquired on or after the 23 August 2019 and put to use before 01 April 2020 from existing 15% (not used in business of running motor cars on hire) and 30% (used in business of running motor cars on hire) to 30% and 45% respectively. The new forms have incorporated the new rate of 45%.
The Form has added a new bifurcation for ‘Pass Through Income/ Loss in the nature of Long-Term Capital Gain, chargeable @ 10% under sections other than u/s 112A’.
As per section 92CE the details of tax on secondary adjustments to be reported in the new schedule TPSA if the assessee seeks to opt to pay additional 18% in case of non-repatriation of funds on account of secondary adjustments.
The form has been amended to record the calculation of income on account of life insurance business as referred to in section 115B of the Income Tax Act.
Your email address will not be published. Required fields are marked *