Changes Related To Pass Through Income In Income Tax Returns of Assessment Year (AY) 2020-21

Pass through income-> Any income accruing or arising to, or received by, a person, being a unit holder of an investment fund, out of investments made in the investment fund, shall be chargeable to income-tax in the same manner as if it were the income accruing or arising to, or received by, such person had the investments made by the investment fund been made directly by him.

Up to Assessment Year 2018-2019 any Pass through income received by an assessee has to be reported in Schedule PTI only and income we have to report in respective Heads of income as there is no difference in normal income and pass through income

W.e.f Assessment Year 2019-2020, Pass through income we have to Show in Heads of income separately and the same we have to report in Schedule PTI also, for example if we have any pass through income from House property and rental income from House property, in this case rental income we have to show in as Income from Let out property and for Pass through income we will get another option to disclose the same in Income from house property head.

Now in Current Assessment Year 2020-2021, a change has come that Pass through losses if any, we have to report in Schedule CFL (Carry forward of losses) also, this means that whatever we were doing in Assessment Year 2019-2020, we have to repeat in Assessment year 2020-2021 also and one more additional requirement is there to report losses separately as normal loss or PTI loss. This practice we have to do for –

  • House property loss
  • Short-term capital loss
  • Long-term capital loss

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October 2021