New ITR regulations that each taxpayer should be familiar with when filing for FY 21–22

ITRs must be submitted by July 31, 2022. Now, the taxpayers must also offer some extra data. Here are nine essential details that you should provide while completing an ITR.

New ITR regulations that each taxpayer should be familiar with when filing

New ITR Form rules to follow:

1. Declaration of taxable interest in an EPF account: If your annual EPF contributions total more than Rs 2.5 lakh, the interest on those additional contributions will be taxed. This interest must be disclosed on the ITR form.

2. Date of building or property purchase or sale: This time, information about purchasing a home or land must be provided when filing an ITR. In the ITR form, you must include the date of the purchase or sale for Capital Gains purposes.

3. Pensioners will now fall under an enhanced category, and they will need to fill out ITR forms with details on their pension source. The options available to pensioners include CG, SC, or PSU, which stands for central government, state government, and public sector firm pensions, respectively.  Additional options like EPF pension are also there to choose from.

Also ReadHow to use new ITR forms?

4. Information on land or building renovations for every year should be mentioned. This time, you will need to provide information on your expenditures for building and land improvements on a year-by-year basis when completing your ITR.

5. The actual cost of purchase is also required. Only index cost had to be disclosed when reporting capital gains, but from this year, index cost and actual cost are necessary. When releasing the ITR forms, the Income Tax Department also explained all these new regulations.

6. When submitting an ITR, you must specify your residential status. This year, you must choose the option required to support the residence status if you are filing an ITR-2 or ITR-3 form. To guarantee the correct residential status, reasonably precise information is being collected this time.

7. The employee must include the tax-deferred amount while completing the ITR form. The taxpayer will need to provide information on the tax payable in 2021–2022, the amount of tax-deferred for the next year, the date on which he stopped working for a company, and the amount of tax due in 2020–21.

8. It is required to provide this information when completing an ITR if a person has assets overseas or has received dividends or interest on any purchases from abroad.

Also Read: Steps to follow when you missed the ITR deadline.

9. You will be required to disclose not just whether you own a property abroad but also whether you have ever sold any such property. Each aspect of the property, including the buyer and the address, must be disclosed.

Want to know more about ITRs?

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