In the event that you are considering filing your income tax returns(ITR) presently to dodge the last-minute rush, it’s a sensible thing to do. The last date for filing ITR has been stretched out to December 31, 2020. But before you undertake the exercise, it would help to know the changes that the income tax department has made in the notified ITR forms for FY20.
Changes in FY20 ITR Forms That You Should Know About
The tax department acquires a couple of changes in the tax forms almost every year to facilitate the cycle of tax filing and increase compliance. Here are the changes in this year’s ITR forms that you should know about.
- Now, Long-term capital gains (LTCG) from equity shares and mutual funds above Rs.1 lakh are taxable. A grandfathering system has been introduced for listed shares and specified units bought before January 31, 2018, on which such tax isn’t imposed. To catch these subtleties, a different Schedule 112A has been introduced in the ITR forms. You are needed to unveil subtleties of the sale of equity share in an organization or unit of equity-oriented fund on which Securities Transaction Tax (STT) is paid under Section 112A.
Providing scrip-wise details in FY20 ITR forms is required to be filled up only for reporting of LTCG that is eligible for the benefit of grandfathering. Grandfathering is computed based on the cost, sale, and market price as of 31 January 2018 for each share or unit and, hence, there is a need to capture the details,” said Tapati Ghose, partner, Deloitte India, a consultancy firm.
There are other details to be provided as well. “Taxpayers will need to provide international securities identification number (ISIN), name of the scrip, number of units or shares sold, sale price, purchase cost and fair market value (FMV) in Schedule 112A form at the time of tax filing. These details can be obtained from the taxpayer’s stock statements,” said Daphne Anand, chief technology officer, IndiaFilings, a tax filing portal.
For shares or units bought after 31 January 2018, a consolidated entry instead of scrip-wise details would suffice.
- Due to the Coronavirus emergency, the tax department permitted taxpayers to guarantee deduction, including under Section 80C, for FY20, for investments made till July 31, 2020, rather than till March 31, 2020. To guarantee such benefit, you should give subtleties in ITR forms under a new timetable. Leave the segment clear on the off chance that you don’t need the advantage for FY20 however might want to benefit from it in FY21 instead.
- The advantage of Section 80D (for tax benefit on medical insurance) on premiums paid for self and family and parents(counting senior residents) need to be mentioned independently. Prior, you could specify a united sum under Section 80D for the medical insurance premium paid for self and family and parents.
- You can provide details of more than one bank account in which you want a tax refund.
- In the house property schedule in ITR-2, you have to reveal a permanent account number (PAN) or Aadhaar of the co-proprietor or tenants. In the capital increases plan for ITR-2, as well, PAN or Aadhaar of the purchaser of the enduring property is required. Prior, just PAN was needed in the two cases.
- In the event that you have net available pay, with no deductions, beneath Rs.2.5 lakh, you are not needed to file ITR. However, on the off chance that you have made certain specified transactions, you have to file ITR from this year. These transactions incorporate depositing more than Rs.1 crore in more than one or more current accounts in FY20, spending more than Rs.2 lakh on foreign travel; and paying more than Rs.1 lakh as electricity bill in FY20.
For more information, visit the website of All India ITR