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The income tax filing deadline will end in three days. The Department has been issuing reminders to taxpayers through emails, SMS not to wait till the last minute and file their Income Tax Returns without further delay. All taxpayers who are yet to file their Income Tax returns for AY 2021-22 should take note of the top 5 changes announced by the Income-tax department that are important while filing ITR

Over 4.67 crore Income Tax Returns (ITRs) have been filed on the new e-filing portal of the Income Tax Department as of December 27, 2021.

 

Amit Gupta, MD, SAG Infotech — a SEBI-registered income tax solution provider company explained the changes announced by the Income-tax department that are important while filing ITR

1) Annual Information Return (AIR)

Annual Information Return (AIR) statement of financial transactions has been introduced to gather detail of high-value transactions. Now tax authorities can easily detect such unusually high-value transactions as per AIR statement in a financial year.

2) ITR 1 with Quarterly breakup of Dividend Income

Quarterly-wise breakup in all ITR forms actually accelerates computing of interest payable under section 234C for default in payment of advance tax liability. The I-T department has amended the form that now allows taxpayers to file returns in ITR-1 to provide a quarterly breakup of dividend income earned during the year.

3) If the tax on ESOPs deferred, ITR 1 and ITR 4 cannot be filed

Rule 12 has been amended with ITR-1 and ITR-4, and now assessees in case of deferment of payment or tax deduction in respect of ESOPs allotted by start-ups under section 80-IAC, are not eligible to furnish the return in income in ITR-1 and ITR-4.

4) Increase in threshold limit for tax audit

Finance Act, 2020 increased the ceiling limit from 1 crore to 5 crores, later the Finance Act, 2021 increased it to 10 crores. Similarly, the I-T department also made necessary amendments in the notified ITR forms for the assessment year 2021-22 to increase the threshold limit for a tax audit.

5) Reporting of Deferred Amount in respect of ESOPs

In case of an employee receiving ESOPs allotted by a start-up under Section 80-IAC for which tax has been deferred, Part B of Schedule TTI seeks to report the amount of deferred tax in this regard.

 

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