The tax council has shown the new income tax return (ITR) forms towards the assessment year 2021-22 (AY22). It is to be urged that in the notification that there is no much amendment done in this year as per the pandemic. But there are some changes done which provide inline through the amendment in Finance act 2020. There are some of the specific ones which you must remember.
The dividends have been taxable towards the assessees rather than distribution tax to be deducted through the firm or payment or declaration of the dividend. The dividend income needs to be mentioned beneath the “income from other sources”.
“Until AY21, only dividend income that was not exempt was required to be disclosed in the section ‘income from other sources. Now, all types of dividend incomes are required to be disclosed here,” said a tax expert.
Under Section 10(34) before that, the dividend income of Rs 10 lakh was privileged from tax. The assessee was needed to show this income beneath the privileged income section. The reference to the dividend income up to Rs 10 lakh via in-house companies has been canceled out for the privileged income act.
In the Financial year 2020, the government has shown that the new concessional tax regime u/s 115BAC where it provides the assessee’s the option to furnish the tax at the lower slab prices however gives up 70 deductions. In Part A of the tax forms, the assessee is needed to opt if he or she is chosen for the concessional tax regime beneath section 115BAC.
