The Central Commission for Direct Taxes (CBDT) had notified new income tax declaration forms – ITR-1 to ITR-7 – for tax year 2021-2022. At the time of the notification, the tax authorities mentioned that no significant changes had been made this year due to the pandemic, but some small changes were incorporated into the forms.
Here are the main changes to note for taxpayers
Disclosure of dividend income: According to the Mint report, dividend income should be reported under “income from other sources”. to be deducted by the company or the payment or declaration of dividend.
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According to the tax research firm Taxmann’s memo mentioned in the Mint report, until AY21, only dividend income that was not exempt had to be disclosed in the “income from other sources” section. But now all types of dividend income will need to be disclosed in the form.
This income from the exempt income section must be mentioned. Previously, dividend income up to Rs 10 lakh was exempt from tax under section 10 (34). The reference to dividend income up to Rs 10 lakh from a national company has been removed from the exempt income section.
New tax regime: Under Section 115BAC, the government introduced a new concessional tax regime in FY20, giving the taxpayer the option to pay taxes at rates below the slab, but only after giving up 70 deductions. . Now the taxpayer can choose to opt for the concessional tax regime under Article 115BAC of Part A of the tax forms.
Also note that the Excel and Java versions of the ITR utilities will not be available from YY 2021-22. However, JSON as an alternative to the Excel and Java versions of the ITR utilities will be available. For now, ITR-1 and ITR-4 have this offline utility available, but in the future other ITRs will be included as well. The utility based on the latest JSON technology can import and pre-populate data from the e-filing portal.