ITR Filing Income Tax Return Forms for FY 2023-24

I. Increased Scrutiny on Deductions

The Income Tax Department has tightened regulations on tax deductions. Taxpayers now need to provide more details on various aspects, including political party donations, disabled dependents, and high-value life insurance policies. This aims to prevent false claims and ensure accurate deductions under Section 80GGC.

Also Read: ITR Filing Income Tax Return Forms for FY 2023-24

II. Political Party Donations under the Scanner

Donations to political parties under Section 80GGC require a detailed breakdown. Taxpayers must now specify the contribution amount, mode of payment, and transaction number for bank transfers. This scrutiny aims to prevent inflated claims for tax deductions.

III. In-depth Reporting on Life Insurance Policies

Taxpayers receiving annual bonuses from life insurance policies now face a new reporting requirement. The ITR forms include a dedicated column for declaring bonus payments received during the financial year. Additionally, individuals must disclose whether money received from high-premium life insurance policies is taxable, bringing clarity to the taxation of life insurance proceeds.

Also Read: ITR Filing Income Tax Return Forms for FY 2023-24

IV. Comprehensive ESOP Reporting

Employees with stock options from select startups now face a more comprehensive reporting process. Alongside tax amounts and linked years, taxpayers must provide the PAN of the eligible startup and the Department for Promotion of Industry and Internal Trade (DPIIT) registration number to claim ESOP-related tax benefits.

V. Crypto Investments and Online Winnings Disclosure

The growing significance of virtual assets and online earnings prompts detailed disclosures. Taxpayers must now provide quarter-wise breakdowns of their crypto investments under ITR-1, 2, and 4. Additionally, online game winnings are explicitly addressed in Schedule OS, ensuring a thorough examination of income from online games.

VI. Cash Turnover Disclosure in ITR-4

For businesses filing under ITR-4, a new column requires the disclosure of cash turnover or gross receipts. This ensures transparency in financial transactions, with the turnover threshold for presumptive taxation under Section 44AD raised to INR 3 crores.

Also Read: ITR Filing Income Tax Return Forms for FY 2023-24

VII. Companies Face Enhanced Reporting Requirements

ITR-6, designed for companies, introduces additional reporting requirements, including the Legal Entity Identifier (LEI), MSME registration number, reasons for tax audits under Section 44AB, disclosure of winnings from online games taxable under Section 115BBJ, and details on virtual digital assets.

VIII. Emphasis on Timely Payments to MSMEs

ITR-6 now includes clauses requiring companies to report sums payable to micro or small enterprises, emphasizing the importance of timely payments.

As the ITR filing season approaches, taxpayers need to pay meticulous attention to the changes introduced by the CBDT.

Also Read: ITR Filing Income Tax Return Forms for FY 2023-24

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Significant Changes in India Income Tax Return Forms for FY 2023-24

1. Increased Scrutiny on Deductions

The Income Tax Department, utilizing artificial intelligence, has tightened regulations on tax deductions. Taxpayers are now required to provide additional details on various fronts, including political party donations, disabled dependents, and high-value life insurance policies. The aim is to prevent false claims and ensure the accuracy of deductions under Section 80GGC.

Also Read: Significant Changes in India Income Tax Return Forms for FY 2023-24

2. Political Party Donations under the Scanner

Donations to political parties under Section 80GGC now require a meticulous breakdown. Taxpayers must provide not only the contribution amount but also details such as the mode of payment and the transaction number linked to bank transfers. This granular scrutiny aims to thwart any attempts at inflating claims for tax deductions.

3. In-depth Reporting on Life Insurance Policies

Taxpayers receiving annual bonuses from life insurance policies face a new reporting requirement. The ITR forms now feature a dedicated column for declaring bonus payments received during the financial year. Additionally, individuals must disclose whether money received from high-premium life insurance policies is taxable, ushering in greater clarity on the taxation of life insurance proceeds.

4. Comprehensive ESOP Reporting

Employees with stock options from select startups now face a more comprehensive reporting process. Alongside tax amounts and linked years, taxpayers must provide the PAN of the eligible startup and the Department for Promotion of Industry and Internal Trade (DPIIT) registration number to claim ESOP-related tax benefits.

Also Read:
ITR Filing Income Tax Return Forms for FY 2023-24
7 Key Advantages of e-Filing Income Tax Returns in India
Significant Changes in India Income Tax Return Forms for FY 2023-24

5. Crypto Investments and Online Winnings Disclosure

The rising prominence of virtual assets and online earnings has prompted the tax department to seek detailed disclosures. Taxpayers must now provide quarter-wise breakdowns of their crypto investments under ITR-1, 2, and 4. Moreover, online game winnings are now explicitly addressed in Schedule OS, ensuring a thorough examination of income from online games.

6. Cash Turnover Disclosure in ITR-4

For businesses filing under ITR-4, a new column requires the disclosure of cash turnover or gross receipts. This aims to ensure transparency in financial transactions, with the turnover threshold for presumptive taxation under Section 44AD raised to INR 3 crores.

7. Companies Face Enhanced Reporting Requirements

ITR-6, tailored for companies, introduces several additional reporting requirements. These include the Legal Entity Identifier (LEI), MSME registration number, reasons for tax audits under Section 44AB, disclosure of winnings from online games taxable under Section 115BBJ, and details on virtual digital assets.

Also Read: Significant Changes in India Income Tax Return Forms for FY 2023-24

8. Emphasis on Timely Payments to MSMEs

Acknowledging the importance of timely payments to micro or small enterprises, ITR-6 now incorporates clauses requiring companies to report sums payable to such entities.

In order to the significant changes in India Income Tax Return Forms for FY 2023-24, As taxpayers gear up for the ITR filing season, the changes introduced by the CBDT demand meticulous attention.

Also Read:
ITR Filing Income Tax Return Forms for FY 2023-24
7 Key Advantages of e-Filing Income Tax Returns in India
Significant Changes in India Income Tax Return Forms for FY 2023-24

Get the Business News along with India’s Latest Updates at TheNewsay and Follow for Live Updates – Facebook, Instagram, Threads, Twitter, Pinterest, KooApp and YouTube.