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July 06, 2023
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Three significant changes incorporated into this year's ITR (Income Tax Return) forms for FY 2022-23 (AY 2023-24)

With the approaching deadline for filing personal returns for FY 2022-23 (AY 2023-24), which must be submitted by July 31, 2023, to avoid penalties, there are three significant changes incorporated into this year's ITR (Income Tax Return) forms:

  1. Reporting of Crypto Currencies, Non-Fungible Tokens, and other Virtual Digital Assets (VDAs):

Starting from April 1, 2022, the Income Tax Act has introduced specific provisions for taxing incomes related to VDAs. Additionally, TDS (Tax Deducted at Source) under section 194S now applies to payments received for crypto transactions.

The revised ITR forms now include mandatory disclosures regarding income from VDAs. Taxpayers are also required to specify whether VDA income falls under the category of business income or capital gains, reporting it accordingly under the appropriate income head.

  1. Donation Reference Number for 80G Deduction:

For taxpayers making donations in the relevant financial year and seeking deductions under section 80G, simply possessing a donation receipt may not be adequate for claiming the deduction.

The updated ITR forms now mandate taxpayers to provide the Donation Reference Number (referred to as ARN) when making donations to entities eligible for a 50% deduction, subject to qualifying limits. The ARN is a unique reference number obtainable from Form 10BE or the receipt issued by the recipient entity.

  1. Claiming TCS (Tax Collected at Source) of Spouse/Other Person:

In specific situations, taxpayers may be entitled to claim TCS credits related to another individual against their own tax liability. The ITR form now offers taxpayers the option to assert such TCS credits associated with their spouse or another person.