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Income Tax Return

Tax season generally coincides with monsoon, unlike the latter, the former is not a season that taxpayer look forward to.

Taxation by itself is complex. For the layman, it gets even more so when they have to file their ITR. The ITR forms are complicated as there are several fields that need to be filled and nomenclature that needs to be understood.

The Income Tax department has notified new Income Tax return forms for individuals and companies for the assessment year 2019-20. As per past trend this year also many additional details are asked from assessee to fill the forms.

The same are as follows-

  1. Details of Unlisted Equity Shares held in private and public companies-

Every individual who is holding, transferring or has sold any unlisted share in Private Limited Companies or Public Limited Companies needs to provide the following information-

  • Name of Company
  • PAN of Company
  • Opening Balance of Shares
  • Opening Balance of Cost of Acquisition
  • No of Shares Acquired during year
  • Date of Purchase
  • Fair Value of Shares
  • Issue Price per shares
  • Purchase price in case purchase from existing share holders
  • No of shares transfer during year
  • Sale Consideration received
  • Closing Balance of Shares
  • Closing Balance of Cost of Acquisition

The above details are required to be furnished in ITR 2, ITR 3 ITR 5 and ITR 7.

  1. Details of Directorship held in any company (public or private).

Information asked in Income Tax Return Forms are-

  • Name of Company
  • PAN of Company
  • If shares are listed or unlisted
  • DIN Number (Director Identification Number)
  1. Details in case of Agriculture Income if farm income exceeds Rs 5 Lakhs.
  2. Property which is let out and TDS is deducted then PAN of Tenant is compulsory.
  3. Individual and HUF filing ITR-3 and ITR-6 are required to disclose information regarding turnover / gross receipts as per Goods and Service Tax.
  4. Companies filing ITR-6 should insert new schedules for shareholding of start-ups and unlisted companies which require extensive detailing in the new assets -liabilities schedule.
  5. Manufacturing account details.
  6. Expats need to give more info for claiming tax pact relief.
  7. Overseas Citizens of India and Persons of Indian Origin claiming non-resident status in India will be required to report the number of days stayed in the country in the relevant tax year and in the previous four tax years.
  8. Very Senior Citizen can now have option to file ITR 1 or ITR 4 Manually.

The Direct Tax Expert at DBC recommends filing ITR on time, which is beneficial and will keep you tax-compliant. We would like to enlighten you that the e-filing season has begun and it empowers you to be responsible citizen and file your taxes early to avoid last-minute issues.

We at DBC can provide you with professional help in filing your returns, as the forms are becoming more complex by the day and hence any information if missed by you can lead to a defective notice.