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CBDT Tightens Tax Reporting with New ITR Forms
6 Apr
Summary
- New tax forms require granular reporting of business income and deductions.
- Interest on delayed payments to micro/small enterprises now reported.
- Contact information reporting is now more comprehensive.
The Central Board of Direct Taxes (CBDT) has notified updated Income-tax Return (ITR) forms for assessment year 2026-27, implementing over 20 changes across various forms. These revisions aim to bolster transparency and compliance tracking.
Key updates include expanded disclosures for business income, requiring separate reporting of turnover and income from futures and options trading. Interest disallowed on delayed payments to micro and small enterprises under Section 43B(h) must now be reported. Partners will also disclose interest and remuneration received from firms.
Deduction reporting is tightened, with claims under Section 80GGC needing the political party's PAN, and Section 80G donations requiring transaction details and bank IFSC codes for verification.
Presumptive taxation under ITR-4 now necessitates reporting investments made during the year. Non-residents opting for presumptive provisions will report turnover and profits separately.
Changes also affect interest income classification and the reporting of interest taxable at concessional rates. Redundant disclosures, such as splitting capital gains based on recent rate changes, have been removed, streamlining the process.
Trusts filing ITR-7 must report the total value of investments and the validity period of registrations under other laws. Contact information requirements have also been expanded to include primary and secondary details.
