Understanding the Latest Changes in ITR 6 for AY 2024-25

Tax season brings with it a flurry of updates and amendments, and this year is no different. The Central Board of Direct Taxes (CBDT) has introduced significant changes to the Income-tax Return Form 6 for the Assessment Year 2024-25. Let's delve into the key modifications:

1. LEI Requirement for Refunds: Companies eyeing refunds exceeding Rs. 50 crores must now furnish their Legal Entity Identifier (LEI) details. This additional step aims to streamline the refund process and enhance transparency.
2. New Schedule 115TD: Under this provision, approved funds or institutions falling under Sections 10(23C) or 12AB are subject to additional income tax on accreted income. This change underscores the importance of compliance within the specified frameworks.
3. Enhanced CGAS Reporting: Schedule CG has undergone modifications to facilitate detailed disclosure of sums deposited in the Capital Gains Accounts scheme (CGAS). This move aims to bolster reporting accuracy and accountability.
4. Political Donation Disclosure: The disclosure requirements under Section 80GGC have been expanded to include contribution amount, transaction details, and IFSC code. This step towards greater transparency in political funding is noteworthy.
5. Startup Deduction Details: A new schedule has been introduced for Section 80-IAC deductions, necessitating details such as incorporation date, business nature, and certificate number. This supports the burgeoning startup ecosystem in availing relevant tax benefits.
6. Offshore Banking Disclosures: Additional disclosures are now mandated for offshore banking units or IFSC, reinforcing compliance measures in cross-border financial activities.
7. MSME Disallowance: Part A-OI now incorporates a new column for disclosing payments to Micro or Small Enterprises beyond specified time limits, aligning with the ethos of supporting MSMEs.
8. Online Games Income: Amendments in Schedule OS cater to the disclosure of income from online games taxable under Section 115BBJ, reflecting the evolving nature of income sources in the digital era.
9. Flexible ITR Filing Due Date: Taxpayers are granted the flexibility to select the applicable due date from provided dropdown options, facilitating smoother filing processes.
10. UDIN Requirement: The mandate to furnish the audit report acknowledgment number and Unique Document Identification Number (UDIN) adds an extra layer of authentication to the reporting process.
11. MSME Registration Number: As per the MSME Development Act, 2006, companies are now required to provide their allotted registration number, further empowering the MSME sector.
12. Reason for Tax Audit: ITR-6 now seeks reasons for tax audit under Section 44AB, promoting a deeper understanding of audit triggers and compliance requirements.

In conclusion, staying compliant and informed about these changes is imperative for businesses navigating the intricate landscape of taxation. These revisions not only reflect the evolving regulatory framework but also underscore the need for accurate reporting and adherence to statutory norms. Embracing these changes ensures smoother tax filing experiences and fosters a culture of transparency and accountability in financial dealings. Stay compliant, stay informed!