Income Tax Return – Changes in ITR Form – FY 2021-2022 –

Changes in ITR Form

Income Tax Return – Changes in ITR Form – FY 2021-2022

The CBDT has well in advance notified the Income-tax Return (ITR) Forms for the AY 2022-23 vide Notification No. 21/2022 dated 30-03-2022 & Notification No. 23/2022 dated 01-04-2022. There are various changes in the disclosure requirements in the new ITR Forms. Let us have a look at some of the key changes in the ITR that may be relevant to most taxpayers.

1. Applicability of ITR Forms:

The new ITR forms do not tinker with the applicability of ITR forms. The criteria for selecting the ITR forms for the AY 2022-23 shall be the same as that of the AY 2021-22.

2. Schedule of Capital Gain:

New ITR forms require the following additional disclosures in the Schedule of Capital Gain:

(a) Date of purchase & sale of Land/Building (b) Country and Zip Code if the property is situated in a foreign country (c) Disclosure of FMV & consideration received in slump sale transaction (d) Year-wise details of the cost of improvement to land/building (e) Separate disclosure of cost & indexed cost of acquisition
Further, new ITR 5 has been suitably amended for disclosure of deduction allowable u/s 48(iii) in respect of the capital gains of firm u/s 45(4).

3. Disclosure of the taxable EPF interest:

FA-2021 has amended Sections 10(11) and 10(12) to provide that no exemption shall be allowed in respect of interest income from the recognized and statutory provident fund to the extent it relates to the amount of the contribution made by the employee exceeding Rs. 2,50,000 in any year on or after 01-04-2021. The new ITR forms have amended “Schedule OS” (Other Sources) to incorporate specific reporting of such interest income.

4. Change in “Schedule FA” (i.e., Foreign Assets):
Schedule FA requires the reporting of foreign assets. The new ITR Forms have replaced the expression “Accounting Period” with “Calendar Year ending as on 31st December 2021”. As a result, the taxpayers shall be required to furnish the details of all foreign assets held between 01-01-2021 and 31-12-2021 in return to be filed for AY 2022-23.

5. Taxation of ESOP:

New Schedule has been inserted for reporting of tax-deferred on ESOP whereby an employee can defer the payment or deduction of tax in respect of shares allotted under ESOP (Specified Securities) by an eligible start-up referred U/s 80-IAC. The New ITR Forms have inserted a “Schedule: Tax-Deferred on ESOP” to keep a proper track of such transactions.

6. Nature of employment of pensioner:

In earlier ITR forms, an individual receiving a pension was just required to choose the option of ‘Pensioners’ in the dropdown menu ‘Nature of Employment. Now, the following options have been further incorporated for pensioners (i) Pensioners–CG (ii) Pensioners–SC (iii)Pensioners–PSU, and (iv) Pensioners–Others.

7. Taxpayers who have opted for alternative tax regime U/s 115BAC:

Now, taxpayers have an option of a new tax regime of lower tax without any deduction or exemption. The following disclosures are required in ITR 3 and ITR 4:

(a) Whether the assessee has opted for an alternative tax regime, u/s 115BAC & filed Form 10-IE in AY 2021-22;

(b) For the AY 2022-23, the assessee has to choose from the following options:
· Opting in now
· Not opting
· Continue to opt
· Opt-out

8. Taxpayers who have opted for alternative tax regime U/s 115BA/115BAA/ 115BAB/ 115BAD:

All taxpayers who have opted for an alternative lower tax regime are now required to give the details of the year wherein the option was first exercised as well as the details of having filed the prescribed form (like Form No. 10IB, 10 IC etc). Similarly, if the taxpayer is continuing the option, then the details of filing such a prescribed form in an earlier year are also required to be given.

9. Disclosure for a person not opting for audit u/s 44AB:

Audit u/s 44AB is not mandatory for taxpayers with turnover between Rs. 1 crore to 10 Cr if the cash receipt and cash payment do not exceed 5%. Now, for the purpose of computing the limit of 5%, payment or receipt by cheque drawn on a bank or by a bank draft, which is not an account payee, shall be deemed to be the payment or receipt in cash only [FA-2021]. The old ITR Forms required the assessee to furnish the response regarding cash receipts and payments only. Now, the following additional disclosures are required regarding Audit Information:

(a) Whether total sales, turnover or gross receipt is between Rs. 1 Cr & Rs. 10 Cr? If not, is it below Rs. 1 Cr or exceeds Rs. 10 Cr?

(b) The new ITR forms require aggregation of receipts and payment in cash and non-account payee cheque or DD while computing the limit of 5% as mentioned above.

10. Residential Status:

In the new ITR, it is now mandatory to choose the suitable option in support of residential status in India. Few more options have been added to the ITR forms so as to ascertain the exact nature of the residential status of the taxpayers.

11. Disclosure of Deemed Dividend Separately:

Until last year, there was no separate disclosure of dividend income taxable u/s 2(22)(e) i.e., Deemed Dividend. Now, in the new ITR forms, dividend income taxable u/s 2(22)(e) has to be reported separately.

12. Capping the surcharge on dividend income:

In the case of individuals, HUF, AOP, BOI, or AJP, the surcharge on tax on dividend income is attracted @ 10% if it exceeds Rs. 50 lakh but does not exceed Rs. 1 Cr and @ 15% if it exceeds Rs. 1 crore. The consequential change has been done in Schedule Part B–TTI (Computation of tax liability on total income).

13. Exempt Income Disclosure:

The New ITR Form now requires disclosure of exempt income u/s 10(23FB), 10(23FBA), 10(23FC)/10(23FCA), etc. Earlier there was no need to make specific disclosure of the applicable section.

14. Disclosures in respect of Significant Economic Presence:

In the new ITR forms, the non-resident has to confirm if there is a Significant Economic Presence (SEP) in India or not. If there is a SEP in India, the details of the transactions & users are to be incorporated into the ITR Form.


The information in the database of the income tax department has increased drastically and so are the reporting requirements of the reporting in the ITR forms. Artificial intelligence is going to play a vital role in tax administration. Taxpayers need to be all the more careful and cautious while filing their income tax returns.

Contact us for filing Income Tax Return, Tax Returns, Tax Planning, Tax Refund, Capital Gain Returns, and Tax Audits.

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80C, 80CCC, 80CCD, 80D – Deduction under Income Tax Act –

Why has the government of India has provided various deductions such as 80C, 80CCC, 80CCD, 80D?

Deduction from 80C, 80CCC, 80CCD, 80D is some of the most used deductions used by an individual to save taxes. The income tax department with an aim to inculcate saving and investment habits among individuals, and spread awareness for health insurance, has provided tax benefits under sections 80C and 80D. In the current era where education cost has increased and people take education loan to cover the cost of education, the government by providing deduction under 80E for the interest paid on education loan.

80C & 80CCC, 80CCD

80C is one of the most favorable sections and can be regarded as a gift to an individual given by Income-Tax Authorities to save some taxes. It is one of the most widely used sections for reducing taxes. Whenever you watch any news channel before the financial budget, you will hear people’s demand to increase the limits provided under Section 80C. The benefit under this section is provided to individuals and HUFs.

Note – Companies, LLPs, Partnership Firm, AOI, BOI, and other forms of business cannot avail the benefit under this section.

What is the current limit under 80C?

  • ⦁ The current overall limit under section 80C is Rs. 1,50,000.
  • ⦁ Even if you invest under 80CCC, the overall limit is still Rs. 1,50,000 (In easier sense limits combined for both 80C and 80CCC is Rs. 1,50,000) with an exception that you can avail the extra tax benefit of Rs. 50,000 if you invest in NPS covered under section 80CCD(1B).

Instrument covered under section 80C?

The instrument for Tax Deduction
80CFollowing instrument qualifies for a deduction under section 80C – Public Provident Fund, Employees Provident Fund (the employees’ contribution, Equity Linked Saving Scheme (ELSS Mutual Fund), Life Insurance Premium, Stamp duty, and registration charges when a new property is purchased, principal payment for housing loan, Sukanya Samriddhi Yojna, National Saving Certificate (NSC), ULIP Policies, Tax Saver FD for 5 years, Infrastructure Bond, Senior citizen savings scheme (SCSS), etc.
80CCC Deduction for life insurance annuity plan.80CCC allows a deduction for payment of premium/contribution for annuity pension plans.
Note – Pension received from the annuity or amount received upon surrender of the annuity, including interest or bonus accrued on the annuity, is taxable in the year of receipt.

Note – The contribution above is combined with Rs 1.5 Lakh (limit allowed u/s 80C).
80CCD(1) Deduction for NPSEmployee’s contribution under NPS is deductible under section 80CCD(1) –

Maximum deduction allowed is least of the following
– 10% of salary (Basic Salary+Dearness Allowances) (in case taxpayer is employed) and
– 20% of gross total income (in case of self-employment).

Note – The contribution above is combined with Rs 1.5 Lakh (limit allowed u/s 80C).
80CCD(1B) Deduction for NPSAdditional deduction of Rs 50,000 per year is allowed for the amount deposited into the NPS account eligible under section 80CCD(1B).

Note – Contributions made to Atal Pension Yojana are also eligible for deduction under 80CCD(1B).
80CCD(2) Deduction for NPSBenefit in this section is allowed only to salaried individuals and not self-employed.
Employers’ contribution is allowed for deduction up to
– 10% of basic salary plus dearness allowance.


80D – Deduction for payment of Medical Insurance Premium –

Section 80D is allowed as a deduction for money spent on maintaining your health and health insurance and assumes great significance in your tax planning and managing personal finance.

The deduction is available for payment of premiums for health insurance policies and medical expenses for senior citizens.

Who can avail the deduction, for whom and up to what amount?

⦁ Any individual or HUF can avail of deduction u/s 80D.

⦁ The deduction is available for payment of insurance premium of –

  • ⦁ Self
  • ⦁ Spouse
  • ⦁ Dependant children
  • ⦁ Parents
InsuredDeduction Amount in Rs.
 Age Below 60 yrs.Age Above 60 yrs.
Self, Spouse, and Children25,00050,000
Max Deduction50,0001,00,000
Opt Preventive Healthcare*5,0005,000

What is Preventive Heath Checkup, and what qualifies for deduction?

⦁ To promote the habit of getting your body checkup every year, the government started giving deductions for a preventive health checkup from 2013-14. The idea of preventive health check-ups is to identify any illness and mitigate risk factors at an early stage through frequent health checkups.

⦁ The expenditure for health checkups can be made in cash.

⦁ Maximum deduction for self, spouse, and family is Rs. 5,000 (subject to overall ceiling mentioned above) and Rs. 5,000 for parents (subject to overall ceiling mentioned above).

Can we claim a deduction for Medical Expenses of Parents who are senior citizen?

⦁ In case your parents are senior citizens and they don’t have any active health insurance policy and they are not filing their Income Tax Returns, then you can claim expenditure incurred on their medical treatment as expenses subject to a maximum deduction of Rs. 50,000.

⦁ Expenditure can be made in cash.

⦁ Senior citizen includes super senior citizen.

Note –

  • ⦁ Cash Payment for paying health insurance premiums is not allowed as a deduction, hence the premium has to be paid electronically or cheques.
  • ⦁ In case premium or expenditure is paid on behalf of grandparents or siblings or working children or any other relative, then the deduction is not allowed.
  • ⦁ HUF can claim a deduction under Section 80D for a medical insurance taken for any of the members of the HUF.. deduction will be Rs 25,000 if the member insured is less than 60 years, and will be Rs 50,000 if the insured is 60 years of age or more.

For Other deductions available for individuals – Read More.

Zero Tax on Salary of Rs. 10,00,000? Is it possible?

Zero Tax on Salary of Rs. 10,00,000? Is it possible?

Yes, even if your salary is up to Rs. 10,50,000, you will not be required to pay the taxes after reading this article.

1. Standard Deduction

⦁ Assumption – Salary Considered – Rs. 10,50,000. If even if it is less, you can still save the taxes to zero and yes, you heard it right – Legally, without having the sleepless nights of getting notices from the Income Tax Department.

⦁ the government provides the Standard Deduction of Rs. 50,000. So your taxable salary is Rs. 10,50,000 – 50,000 = Rs. 10,00,000.

2. Deduction under Section 80C. Confused about what comes under 80C – Read Below –

⦁ PPF, EPF, LIC premium, Equity-linked saving scheme, principal amount payment towards home loan, stamp duty and registration charges for the purchase of property, Sukanya Samriddhi Yojana (SSY), National saving certificate (NSC), Senior citizen savings scheme (SCSS), ULIP, tax saving FD for 5 years, Infrastructure bonds, etc.

⦁ The maximum deduction which can be claimed here is Rs. 1,50,000. Hence, considering you invest Rs. 1,50,000, your taxable salary becomes – Rs. 10,00,000 – Rs. 1,50,000 = Rs. 8,50,000 (taxable salary).

3. Deduction under Section 80CCD (1b) – National Pension Scheme –

⦁ You can claim a deduction of Rs. 50,000 by investing under NPS. Yes, it has restrictions for the withdrawal, but this will help you in building a retirement corpus.

⦁ The taxable salary after investing here will become – Rs. 8,50,000 – Rs. 50,000 = Rs. 8,00,000.

4. Deduction Under Section 80D – Medical Insurance –

⦁ Indians, yes you heard it right we Indians have started giving importance to Insurance policies and yes now we don’t ask ” Wapas Kitna Milega Kuch Nahi Hua To” – With this change in mindset and living in a pollutive environment we require medical insurance. “Sone pe Suhaga” is it will even save your taxes.

  • ⦁ For self, spouse & children – There is a cap of Rs. 25,000 or 50,000 (in case of senior citizen)
  • ⦁ For Parents – There is a cap of Rs. 25,000 or 50,000 (in case of senior citizen)
  • ⦁ Even body checkups are allowed and a deduction up to Rs. 5,000 can be claimed. But the upper limit is mentioned above.
  • ⦁ If your parents are senior citizens, and they don’t have medical insurance and they aren’t filing their Income Tax Return and if you paid for their medical treatment, you can claim up to Rs. 50,000.
  • ⦁ Hence, after section 80D, the taxable salary shall become – Rs. 8,00,000 – Rs. 25,000 = Rs. 7,75,000.

5. Interest on Housing Loan – Section 24b of Income Tax Act –

⦁ We Indians grow up hearing “Apna Ghar Apna Hi Hota Hai” and our minds start thinking about it as soon as we start family planning.

⦁ Interest on housing loans is allowed till Rs. 2,00,000 every financial year. Hence, your taxable salary becomes – Rs. 7,75,000 – Rs. 2,00,000 = Rs. 5,75,000.

6. Interest on Education Loan / Purchase of Electric Vehicle / Donation Under Section 80G —

⦁ Education has become very costly and middle-class parent cannot afford to pay from their pocket, hence education loan is taken by the number of students. The interest component of the loan is deductible under section 80E.

⦁ The world is shifting from Petrol/ Diesel to EVs and yes, you can even claim a deduction of up to Rs. 1,50,000 on interest paid for the purchase of EVs. The deduction is available u/s 80EEB. (Vehicle should be financed, notional interest cannot be claimed).

⦁ If none of the above is applicable, then donations are also allowed as deductions. Provided you are donating to charitable trust or NGOs which has got the certificate from Income Tax.

⦁ Now the overall objective is to reduce the taxable income from Rs. 5,75,000 to Rs. 5,00,000. Considering Rs. 75,000 deductions are claimed by using the above section. Then you need to pay zero taxes. Confused? Happy? How How? Let us see –

⦁ Now the Taxable salary is Rs. 5,00,000. The tax on income up to Rs. 2,50,000 is exempt from tax. Thus the tax payable would be Rs. 12,500 (5% slab from Rs. 2,50,000 to Rs. 5,00,000. Hence 5% of Rs. 2,50,000 is Rs. 12,500).

7. Rebate under section 87A –

⦁ If your income is Rs. 5,00,000 or lesser, you can claim a rebate under section 87A for a maximum of Rs. 12,500. Hurrah the tax payable is Rs. 12,500 (tax calculated above) – Rs. 12,500 (rebate u/s 87A) = 0 (Zero).

Start Planning, you can thank us later 🙂

⦁ Upcoming article – How to pay zero taxes on Rs. 20,00,000 salary. Stay tuned.