The Income Tax Department has recently announced new Income Tax Return (ITR) forms for the Assessment Year (AY) 2022–23. It has added six additional informations which the taxpayers have to disclose.
- Detail of a Pension:
Pensioners must disclose the source of their pension on ITR forms for FY 2021-22. Pensioners have to choose ‘SC’ in case of state government pensioners. Individuals receiving pensions from public-sector employers are eligible for PSU.
- Interest accrued On PF account
Beginning in AY 2022-23, if an employee’s contribution to the Employees’ Provident Fund (EPF) account exceeds Rs 2.5 lakh in a Financial Year (FY), the interest received on the excess contribution will be taxable.
- Purchase or sale date of land
If a taxpayer solds land/ building between 1st April, 2021 to 31st March, 2022, he have to record the acquisition and sale dates in the ITR form’s “Capital Gains” schedule starting this year. Further, the information on the spending on land or building renovations must be provided annually.
- Cost of land and building improvements per year
This year, while filing the ITR, an individual must include year-by-year information on the cost of renovations made to their home. Further, all the renovations or improvements made to the residential property will be considered a cost.
- Reporting of initial cost of purchase and indexed cost of acquisition
The taxpayers are expected to report both the initial cost of purchase and the indexed cost of acquisition this year. However, earlier, a person was only required to include the asset’s indexed cost of purchase while reporting capital gains made during a FY.
- Details of property sold outside India
If an individual taxpayer sells property outside the India, the transaction must be recorded on the new ITR form with the details such as the buyer’s address and the property.
Earlier, it has also been informed that from next year ITR form will have a separate column to report income from crypto and other virtual digital assets (VDAs).