ITR-1 cannot be filed in cases where tax has been deducted u/s 194N:
Section 194N provides that the tax is mandatorily required to be deducted if the amount of cash withdrawn during the year from a banking company or co-operative bank, or post-office from one or more accounts maintained by the taxpayer exceeds :-
- Rs. 20 lacs in case of non-filers of the return
- Rs. 1 crore in all other cases
Vide Income Tax
(7th Amendment) Rule, 2021, the Rule 12 of the Income-tax Rules has been amended to restrict an assessee to use ITR 1, in whose case tax has been deducted u/s 194N.
If the tax has been deducted u/s 194N, a person can file ITR 2/3/4 as the case may be.
TDS deducted under Section 194N cannot be carried forward to subsequent years. It means the credit for tax deducted under Section 194N can be taken in the PY relevant to the assessment year in which tax has been deducted.
An option has been given to Individual or HUF as per Section 115BAC-
Section 115BAC is recently inserted section in Income Tax Act that deals with the new tax regime. This section and alternate tax regime was introduced via Union Budget 2020 and applied to individuals and Hindu Undivided Families (HUFs). A vital feature of this new regime is that the income tax slab rates have been significantly reduced. However, the new rates come at cost of various critical income tax exemptions and deductions currently available under the old income tax regime.
So the option is available to Assess to select the new scheme Section 115BAC and required to file Form-10IE before filing the return under Section 139(1).
Change in Schedule 112A-LTCG from the sale of equity share or unit of equity-oriented fund on which STT is paid –
Sale price per share/unit is now added in Schedule 112A, which was not earlier provided.
Dividend is taxable from A.Y 2021-22-
The dividend income is taxable from A.Y 2021-22 in the hands of the assessee from A.Y 2021-22, so assessee is required to give a quarterly break-up of Dividend received to get relief from the interest levied under Section 234C of the Act.
Changes in the Section 44AB-
The threshold limit to get books of account audited has been increased from Rs. 1 crore to Rs. 10 crores, only if the following conditions have been satisfied -
- The aggregate of all receipt in cash during the previous year does not exceed 5 % of the receipts.
- The aggregate of all payment in cash during the last year does not exceed 5 % of such payments.