Stay informed about latest changes in ITR Filing for FY 23-24 through this article and avoid potential penalties or errors in their filings, thereby minimising the risk of audits or legal issues.

Streamlining Tax Processes for Businesses

The income tax department has introduced changes to simplify tax procedures for businesses, particularly in the area of presumptive taxation under Section 44AD of the Income Tax Act, 1961.

To facilitate this, a new section has been added in ITR forms 5 and 6 to report cash turnover or gross receipts, with the threshold for cash turnover increased to Rs. 3 crores.
However, to be eligible for these relaxed criteria, cash receipts must not exceed 5% of the total turnover or gross receipts from the previous year.

New Requirements for MSMEs in ITR-6 Submission

Businesses utilising ITR-6 for their ITR Filing are now subjected to supplementary obligations. These include furnishing the Legal Entity Identifier (LEI), MSME registration number, and explanations for undergoing tax audits as per Section 44AB of the IT Act.
Moreover, the revised form mandates the declaration of earnings from online gaming in accordance with Section 115BBJ of the IT Act and the possession of virtual digital assets.

Toughened Reporting Requirements for Companies Pursuing Refunds

Companies aiming for refunds of Rs. 50 crores or above are now obligated to adhere to rigorous reporting mandates, which entail the submission of the Legal Entity Identifier (LEI).
Furthermore, in ITR-6, acknowledgment numbers and Unique Document Identification Numbers (UDIN) are now mandatory for tax audit reports pursuant to Section 44AB of the IT Act and transfer pricing reports under Section 92E of the IT Act.