NEW DELHI: The taxpayers will have to make additional disclosures in the Income Tax Return (ITR) forms as the government on Friday notified the ITR form 1-6. Those individuals, who make annual contribution of more than Rs 2.5 lakh in provident fund accounts, will have to mention interest earned on their PF accounts. Interest earned accrued on annual contributions to PF beyond Rs 2.5 lakh is taxable from 2021-22.
The new ITR forms also require one to mention if they have any income from retirement benefit account maintained in another country while they were a non-resident of India or a resident of that country. The Section 89A of the Income Tax Act prescribes relief from taxation in income from retirement benefit account maintained in a notified country. The taxpayer will now have to mention the relief amount claimed to be reduced from gross total salary.
The forms also require additional information on dividend income earned by non-resident entities, dividend income of FIIs and dividend income chargeable at tax treaty rates. The new forms require loans and advances to large shareholders (10% or more), which are deemed dividend income, to be reported separately.
In ITR 2, 3, 4 and 5, one has to make additional disclosures for deduction of cost of acquisition of assets for calculation of capital gains under Section 48 of the Income Tax Act. In case of slump sale, where an entity is sold without separately taking into account the value of separate assets and liabilities, additional disclosure has to be made.
Then there is a separate disclosure required in case of stock option benefits provided by eligible startups. “The trigger for taxation (in case of stock options) is deferred to the point of sale. A separate schedule has now been introduced to capture details of such deferment,” said Saraswathi Kasturirangan, Partner, Deloitte India.