FAQs in respect of
filling-up of the Income-tax return forms for Assessment Year 2019-20
Overview:
The Income-tax return (ITR) forms
for the Assessment Year 2019-20 have been notified on 01.04.2019. Stakeholders raised various queries in respect
of filling-up of the ITR forms given below:
·
Reporting of directorship in a foreign company,
·
Reporting of equity shares listed outside India,
·
Reporting of unlisted shares which were previously listed,
·
Reporting of unlisted shares received by way of gift, will,
amalgamation etc. and
·
Reporting of certain assets held as stock-in-trade.
CBDT has
issued Circular No. 18 /2019 dated 08th August, 2019 against above queries.
Clarification in respect of filling-up of the ITR
forms for the Assessment Year 2019-20
Question.1:
I am a non-resident. The Taxpayer Identification Number (TIN) is not allotted
in my jurisdiction of residence. How do I report the same in the column on
“residential status”?
Answer: In case TIN has not been allotted
in the jurisdiction of residence, the passport number should be mentioned
instead of TIN. Name of the country in which the passport was issued should be
mentioned in the column “jurisdiction of residence”
Question.2:
I am a director in a foreign company which does not have PAN. How do I report
the same against the column “Whether you were Director in a company at any time
during the previous year?”
Answer: You should choose “foreign
company” in the drop-down provided for “type of company”. In such case, PAN is
not mandatory. However, PAN should be mentioned, if such foreign company has
been allotted a PAN.
Question.3:
Whether an individual who is a non-resident, or resident but not ordinary
resident (RoNR) is also required to disclose details of his directorship in a
foreign company which does not have any income accruing or arising in India?
Answer: Yes
Question.4:
I have held shares of a company during the previous year, which are listed in a
recognized stock exchange outside India. Whether I am required to report the
requisite details against the column “Whether you have held unlisted equity
shares at any time during the previous year?”
Answer: No.
Question.5:
I have held equity shares of a company which were previously listed in a
recognised stock exchange, but delisted subsequently, and became unlisted. How
do I report PAN of company in the column “whether you have held unlisted equity
shares at any time during the previous year”?
Answer: In such cases, PAN of the company may be
furnished if it is available. In case PAN of delisted company cannot be
obtained, you may enter a default value in place of PAN, as “NNNNN0000N”.
Question.6:
In case unlisted equity shares are acquired or transferred by way of gift,
will, amalgamation, merger, demerger, or bonus issue etc., how to report the
“cost of acquisition” and “sale consideration” in the relevant column?
Answer: You may enter zero or the
appropriate value against “cost of acquisition” or “sale consideration” in such
cases. Please note that the details of unlisted equity shares held during the
year are required only for the purpose of reporting. The quantitative details
entered in this column are not relevant for the purpose of computation of total
income or tax liability.
Question.7:
I hold shares in an unlisted foreign company which has been duly reported in
the Schedule FA. Whether I am required to report the same again in the column “Whether
you have held unlisted equity shares at any time during the previous year?”
Answer: Yes.
Question. 8:
I have held unlisted equity shares as stock-in-trade of business during the
previous year. Whether I have to report the same in the column “Whether you
have held unlisted equity shares at any time during the previous year?”
Answer: Yes.
Question. 9:
Please clarify whether holding of equity shares of a Co-operative Bank or
Credit Societies, which are unlisted, are required to be reported?
Answer: The details of equity
shareholding in any entity which is registered under the Companies Act, and is
not listed on any recognized stock exchange, is only required to be reported.
Question.
10: I have sold land and building to a non-resident. Whether I need to report
the PAN of buyer in the table A1/B1 in Schedule CG?
Answer: As mentioned in ITR form, quoting
of PAN of buyer is mandatory only if tax is deducted under section 194-IA or is
mentioned in the documents.
Question.11:
I am resident and have sold land and building situated outside India. Whether I
need to report the details of property and identity of buyer in Schedule CG?
Answer: The details of property and name
of buyer should invariably be mentioned. However, quoting of PAN of buyer is
mandatory only if tax is deducted under section 194-IA or is mentioned in the
documents.
Question.
12: Whether it is mandatory to provide ISIN details and scrip-wise computation
of Long Term Capital Gains (LTCG) arising on sale of Shares/Mutual Funds units
on which STT has been paid?
Answer: The tools for computation of LTCG
under sections 112A and 115AD have been provided in the departmental utility
for the convenience of taxpayers. These are optional tools designed for
computation of the final figures of LTCG, which is then populated in the
respective items in Schedule CG. Alternatively, the taxpayers can themselves
compute the aggregate long term gain or loss manually, and input the same
directly in the respective items in Schedule CG.
Question.13:
An unlisted company is required to furnish details of assets and liabilities in
the Schedule AL-1 of ITR-6? Please clarify whether details of assets held as
stock-in-trade of business are also required to be reported therein.
Answer: In case jewellery/motor vehicle
etc. is held as stock-in-trade of business, the drop-down value
“stock-in-trade” should be selected against the field “purpose for which used”,
while filling up details in the relevant table (table „I‟ or table „H‟). In
such cases, only the aggregate values are required to be filled up, and the
particular details of each asset held as stock-in-trade is not required to be
reported.
Question.14:
I hold foreign assets during the previous year which have been duly reported in
the Schedule FA. Whether I am required to report such foreign asset again in
the Schedule AL (if applicable)?
Answer: Yes.
Question.15:
An unlisted company is required to furnish details of shareholding as at the
end of previous year in the Schedule SH-1 of ITR-6. Please clarify whether
these details are required to be furnished in case of an unlisted foreign
company.
Answer: Not required
Question.16:
An unlisted company is required to furnish details of assets and liabilities in
the Schedule AL-1 of ITR-6. Please clarify whether these details are required
to be furnished in case of an unlisted foreign company.
Answer: Not required.
Question.17:
Please clarify whether a farmer producer company as defined in section 581A of
Companies Act, 1956 is required to furnish details of shareholding in the
Schedule SH-1 of ITR6?
Answer: No. However, please ensure to
tick the option „Yes‟ against the item “whether the company is a producer the company as defined in section 581A of Companies Act, 1956?” in Part-A General.
Question.18:
A company is required to disclose break-up of all payments and receipts during
the year, in foreign currency, as per Schedule FD of ITR-6 (if it is not
required to get the accounts audited u/s 44AB). Please clarify whether only the
receipts/payments related to business operations in India are required to be
reported in Schedule FD?
Answer: Yes. In Schedule FD, the break-up
of receipts and payments in foreign currency is required to be reported only in
respect of business operations in India.
Question.19:
In schedule TDS, one is required to enter the head under which corresponding
receipt has been offered. In some cases, TDS is deducted by the payer in
current year, but corresponding income is to be offered in future years. How to
fill up Schedule TDS in such cases?
Answer: In such cases, no TDS credit
should be claimed under the column “in own hands” for the current year. If this
is done, the column “Corresponding receipt offered” is greyed-off and is not
required to be filled up.
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