Hello readers, Today I will discuss key changes in ITR Forms for A.Y 2021-22 in simplified form-

♦ Regarding changes in ITR-1-

ITR-1 cannot be filed in case tax has been deducted u/s 194N

Now what is Section 194N-TDS u/s 194N is required to be deducted if amount of cash withdrawn exceeds –

  • Exceeds Rs 20 lakhs in case of non-filers of return
  • Rs 1 crore in all other cases

From banking company or co-operative bank or post-office from one or more accounts maintained by taxpayer.

If tax has been deducted u/s 194N, a person can file –

    • ITR 2
    • ITR 3
    • ITR 4
    • Tds dedcuted u/s 194 N cannot be carried forward-

♦ TDS deducted u/s 194N cannot be carried forward to subsequent years.

It means Credit for tax deducted u/s 194N can be taken in previous year relevant to Assessment year in which tax has been deducted.

♦ Option has been given to Individual or HUF as per Section 115BAC-

As you know from A.Y 2021-22 option is available to Individual & HUF whether to opt New Scheme or not . What is difference between old Scheme vs New Scheme you can refer my Article – ‘’New Scheme vs Old scheme –which is better option’’

So option is given to Assessees to select new scheme-Section 115BAC and required to file Form-10IE before filing the return u/s 139(1).

♦ Change in Schedule 112A-LTCG from sale of equity shareor unit of equity oriented fund on which STT is paid –

Sale price per share/unit now added in Schedule 112A which was not earlier provided.

♦ Dividend also taxable from A.Y 2021-22- As we know Dividend Income taxable from A.Y 2021-22 in hands of Assessee from A.Y 2021-22 so we are required to give quarterly break-up of Dividend received in order to get relief from interest levied u/s 234C.

♦ Changes in Section 44AB- The threshold limit to get books of account audited increased from Rs 1 crore to 10 crores if the following conditions are satisfied-

  1. His aggregate of all receipts in cash during the previous year does not exceeds 5 % of such receipts.
  2. His aggregate of all payments in cash during the previous year does not exceeds 5 % of such payments

Note- Json utility for ITR-1 & ITR -4 for A.Y 2021-22 is available now so those who are interested can mail their documents at [email protected].

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April 2021