In a move aimed at simplifying tax procedures for businesses, the income tax department has relaxed criteria for presumptive taxation under section 44AD. Notably, a new ‘receipts in cash’ column has been introduced, disclosing cash turnover or gross receipts. The cash turnover threshold has been raised to Rs. 3 crores, provided that cash receipts remain below 5% of the total turnover or gross receipts from the previous year.
Companies using ITR-6 for filing income tax returns are set to encounter changes, with the form now requiring additional details. Among the new requirements are the inclusion of Legal Entity Identifier (LEI), MSME registration number, reasons for tax audit under section 44AB, disclosure of winnings from online games under Section 115BBJ of the Income Tax Act, and virtual digital assets.
Companies seeking refunds of Rs. 50 crores or more must provide Legal Entity Identifier (LEI) as part of stringent reporting mandates. Additionally, ITR-6 necessitates the inclusion of acknowledgment numbers and Unique Document Identification Number (UDIN) for audit reports under section 44AB (tax audit report) and section 92E (transfer pricing report).
By staying informed about these changes in the latest Income Tax Return forms, businesses can ensure better compliance and navigate the evolving landscape of tax regulations.
Read More: CBDT Notifies ITR Forms for A.Y. 2024-25 notified in Advance
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