The deadline for filing your income taxes is less than a month away, so you need to be sure you are aware of all the changes that are relevant this year. One should be aware of a few less well-known changes while filing taxes, even though tax revisions and the taxability of income from insurance plans (other than ULIPs) are among the most significant changes that have received a lot of attention. We examine these modifications.
Details on when submitting your taxes, you should be aware of two new tax regulations
The first one concerns reporting earnings from virtual digital assets (VDAs), including cryptocurrency. “The taxpayer must disclose income from VDAs such as cryptocurrencies, NFTs, and so on in the “schedule VDA” provided in the ITR form,” explains Aashish Sharma, co-founder and litigation head of Lex N Tax, a tax consulting firm.
Information including the acquisition date, transfer date, tax-related income category, acquisition cost in the case of a gift, and consideration received are required for Schedule VDA. “VDA recipients are ineligible to file ITR-1 or ITR-4 returns. Instead, such income can be reported in an ITR 2 or ITR 3. Additionally, income from VDAs may be taxed as either company income or capital gains, according to Sharma.
New NFT (non-fungible token) and VDA laws were implemented in Budget 2022. According to new laws, beginning on April 1, 2022, the transfer of such assets will be subject to an income tax rate of 30%, as well as a surcharge and a levy.
TDS will be subtracted starting July 1, 2022, at a rate of 1% of the transaction price. The developer, middleman, broker, or donor will deduct this tax. The taxpayers cannot offset losses or carry them forward within cryptocurrency or from multiple heads, according to Suneel Dasari, founder and CEO of tax portal EZTax.
It is essential to have both the donation receipt and the donation certificate in Form 10BE in order to claim a deduction under Section 80G for donations given to charity organizations, non-governmental organizations, or research universities. In order to claim the deduction, taxpayers must fill out the pertinent “Schedule 80G” on the ITR form with the pertinent details about their gifts.
“Form 10BD must be submitted by all NGOs, research universities, and charity organizations recognized under Section 80G for all gifts received during the fiscal year. Additionally, they must give beneficiaries form 10BE, according to Dasari. After the institution files form 10BD, benefactors will receive a form 10BE with a special registration number.
When submitting the ITR, it is crucial to accurately include donation information in the relevant table. The donor reference number (ARN) for contributions made to eligible entities that are eligible for a 50% deduction, subject to the qualifying maximum, is disclosed in a new column under Table D. The ITR must contain the ARN, which can be found on the form 10BE donation certificate provided by the organizations who received the donation.
This has been put in place to eliminate false donation claims by matching the records of the donor and donee.
