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New IT forms seek more disclosures

The income tax returns forms 1-5 have been notified by the Central Board of Direct Taxes (CBDT)
Representational image.
Representational image.
File photo.

Our Special Correspondent   |   New Delhi   |   Published 02.04.22, 04:15 AM

The income tax department has notified forms for filing IT returns for 2021-22 fiscal, requiring more disclosures, including details of investment in unincorporated entities and income from overseas retirement benefit accounts from taxpayers.

The income tax returns forms 1-5 have been notified by the Central Board of Direct Taxes (CBDT).

Neha Malhotra, director, Nangia Andersen LLP said: “Additional disclosure requirements would result in more comprehensive disclosure in the income tax return forms leading to reduced instances of scrutiny cases.

“Further, this timely notification will provide enough time for assesses to collate the information required to be disclosed for the year starting April 1.

This also ensures that tax authorities have enough time to develop utility for the ITR forms, ensuring no last-minute glitches.”

“The ITRs notified for assessment year 2022-23 are seeking extensive details particularly in case of taxpayers having income from business or profession. This is causing a lot of harassment to the public in filling up the return.

“Any mistake may prove fatal as tax liability may be increased. The government needs to review and simplify the returns,” advocate Narayan Jain, chairman, Representation Committee, Direct Taxes Professionals Association said.

He said a separate column has now been inserted in the ITR Forms for reporting gains from cryptocurrencies and other virtual digital assets (VDAs).



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