Whalesbook
Detailed Business Income Disclosures
These changes aim to capture more detailed data and improve reconciliation, especially for business income and deductions. Taxpayers using ITR-3, 5, and 6 must now report turnover and income from futures and options trading separately. A new field will capture interest disallowed due to delayed payments to micro and small enterprises under Section 43B(h). Partners must also report interest and remuneration from firms for increased clarity.
Stricter Deduction and Presumptive Tax Reporting
Disclosure rules for deductions are also stricter. For claims under Section 80GGC, taxpayers must provide the political party's name and PAN. Donations under Section 80G require detailed transaction references and IFSC codes to verify payment trails. Taxpayers choosing presumptive taxation under ITR-4 must now report their investments made during the year. Non-residents face new fields for presumptive income, requiring separate turnover and profit disclosures for sections like 44BBD.
Income Classification and Removed Fields
To help with Tax Deducted at Source (TDS) matching, the forms now clarify interest income classification. Companies, NBFCs, and housing finance firms must disclose interest income under specific heads. A new field will capture interest taxable at concessional rates, like that under Section 194LC. Several redundant reporting requirements have been removed. The requirement to split capital gains based on the July 2024 rate change has been eliminated. Schedule BBS for buyback taxation is no longer part of ITR-6 due to tax treatment changes. Fields for foreign retirement accounts have also been removed from ITR-1 and ITR-4.
Audit, Trust, and Contact Information Updates
Audit disclosures are now limited to key identifiers, and details for representative assessees are restricted to basic contact information. Trusts filing ITR-7 must report the total value of investments, not the nominal value, and disclose the validity period of their registrations under other laws. The thresholds for identifying substantial contributors have also been revised. In a structural shift, taxpayers must now provide both primary and secondary contact details, including mobile numbers and email IDs. This move aims for more comprehensive verification processes.