Key Changes in the New ITR Forms

Individuals/HUFs liable for audit can verify ITR using EVC

Rule 12 has been amended to allow individuals and HUF who are liable to tax audits under Section 44AB to verify the return of income through an electronic verification code. expanding the options beyond the previous limitation to a digital signature.

Furnishing of due date for filing of return

A new column has been inserted in ITR Forms seeking information on the deadline for submitting the income tax return. The taxpayer is required to select the applicable due date for filing the return from the provided dropdown options

New tax regime is the default tax regime

New tax regime will be default tax regime for the Assessee being an Individual, HUF, AOP, BOI and AJP. Assessee need to opt out from new tax regime and choose old tax regime.

The Assessee having income (other than income from a business or profession) must indicate his choice of tax regime in the return of income. The Assessee having income from a business or profession can also opt out of the new tax regime by filing Form No. 10-IEA on or before the due date for filing the return of income under Section 139(1).

Reporting of all banks held at any time

In the new ITR forms, it is obligatory for the taxpayer to disclose all the bank accounts they have ever held during the year

Furnishing of the reason for tax audit under Section44AB

Under Section 44AB, taxpayers are now required to declare the due date for submitting an income return and provide the rationale for conducting a tax audit, enhancing transparency in the reporting process

• Sales, turnover or gross receipts exceed the limits specified under Section 44AB;
• Assessee falling under Section 44AD/44ADA/44AE/44BB but not offering income on presumptive basis;

Adjustment of unabsorbed depreciation (pertaining to additional depreciation) from WDV of the block of assets as on 01-04-2023

In the new ITR Forms, Schedule DPM – Depreciation on Plant and Machinery, has been amended. It provides that the WDV of the block as on 01-4-2023 shall be increased by the amount of unabsorbed depreciation (pertaining to additional depreciation), which was not allowed to be adjusted on account of opting for Section 115BAC.

Furnishing of acknowledgement number of the Audit Report and UDIN

When providing information about audits conducted under Section 44AB, including Report issued under Section 92E, Assessee are required to furnish the acknowledgment number of applicable audit report and the UDIN.

“Receipts in Cash” column added to claim enhanced turnover limit

New ITR forms to include a new column of “receipts in cash” for disclosing cash turnover or cash gross receipts under the Schedule BP.        

Assessee recognized as MSME

The new ITR-5 mandates that an Assessee should furnish information regarding its recognition status as a Micro, Small, and Medium Enterprise (MSME). It is also required to provide the registration number allotted as per the Micro, Small and Medium Enterprises Development Act, 2006.

Disclosure of the sum payable to MSME beyond the prescribed time limit

A new column is inserted under Part A-OI (Other Information) to disclose the sum payable to Micro or small enterprises beyond the specified time limit per the MSMED Act as per new clause (h) in Section 43B.

Disclosure of information pertaining to the Capital Gains Accounts Scheme

Assessee must now furnish comprehensive information regarding the Capital Gain Account Scheme, moving beyond the requirement to disclose only the deposited amount as mandated in the previous year’s form.

The revised schedule now requires the inclusion of the additional details towards CGAS such as Date of deposit, Account number, IFS code

Column added to claim deduction under Section 80CCH

New ITR forms have been amended to include a column to furnish the amount eligible for deduction under Section 80CCH for amount deposited under the Agnipath Scheme towards the Agniveer corpus fund

New Schedule 80DD seeks details towards maintenance & medical treatment of the person with a disability

The new ITR forms have introduced a new ‘Schedule 80DD’ seeking details of deduction in respect of maintenance, including medical treatment of a dependent with a disability.

These details comprise of Nature of the disability, Type of dependent, PAN of the dependent, Aadhaar of the dependent, Date of filing and acknowledgement number of Form 10-IA, UDID Number

New Schedule 80GGC seeks details of contributions made to political parties

Section 80GGC allows for a deduction for contributions to a political party or electoral trust. The new ITR forms include a new Schedule 80GGC, which requires the furnishing of the details such as Date of Contribution, Contribution Amount, Eligible Contribution Amount, Transaction Reference Number for UPI transfer or Cheque Number/IMPS/NEFT/RTGS, IFS Code of the Bank

New Schedule 80-IAC seeks details in respect of eligible startup

A new Schedule seeking details with respect to the deductions claimed by companies under Section 80-IAC. This includes the details such as, Date of incorporation of the startup, Nature of business, Certificate number as obtained from Inter-Ministerial Board of Certification, First AY in which deduction was claimed, Amount of deduction claimed for current AY.

New Schedule 80LA seeking details towards offshore banking unit or IFSC

A new Schedule 80LA has been inserted in the ITR seeking the details from the company such as Type of entity, Type of income of the unit, Authority granting registration, Date of registration, Registration number, First AY during which deduction is claimed, Amount of deduction claimed for current AY

Schedule 80U inserted for claiming deduction if the Assessee is a person with a disability

‘Schedule 80U’ has been added, seeking details of deduction in case of a person with a disability such as, Nature of disability, Date of filing Form 10-IA, Acknowledgment number of the Form 10-IA, UDID number (If available)

New field for opting concessional regime under Section 115BAE

New field has been inserted in ITR seeking details on whether the Assessee is a manufacturing co-operative society opting for taxation under Section 115BAE.along with details of filing of Form 10-IFA and its acknowledgement number

Reporting of other income

‘Schedule OS’ has been amended in new ITR forms to incorporate reporting of following income

• details of dividend income received from a unit in an IFSC which is taxed at reduced rate of 10%.
• income received as bonus under life insurance policies.
• income earned by the unitholder from the business trusts.
• income earned from Winnings from online games

‘Schedule – Tax Deferred on ESOP’ seeks PAN and DPIIT Registration Number of the eligible startup

The new ITR forms necessitate qualifying start-ups to furnish their Permanent Account Number (PAN) and Department for Promotion of Industry and Internal Trade (DPIIT) Registration Numbers under this schedule.

Details of Legal Entity Identifier (LEI)

In a significant development, ITR forms now require the inclusion of the Legal Entity Identifier (LEI), a 20-character alpha-numeric code utilized for globally identifying parties in financial transactions. Taxpayers seeking refunds of Rs. 50 crores or more must provide LEI details, aligning with heightened financial transaction transparency measures.