CBDT issues clarification in respect of filling-up of the ITR forms for the Assessment Year 2019-20

CBDT issues clarification in respect of filling-up of the ITR forms for the Assessment Year 2019-20

August 28, 2019 Fiscal, Industries, states 0

Central Board of Direct Taxes (CBDT) has issued Circular No. 21/2019 dated 27th August, 2019 to provide further clarification in respect of filling-up of the ITR forms for the Assessment Year 2019-20.

Key points of the Circular are:

  1. It has been clarified that, in ITR Form-2 and ITR Form-3, in Part-A General, at column (h), the taxpayers are required to state whether they were Director in a company at any time during the previous year and also disclose following information relating to each company in which he was a Director:-

      (a) Name of Company ;

      (b) PAN of Company ;

      (c) Whether its shares are listed or unlisted ;

      (d) Director Identification Number (DIN).

  1. It has been clarified that, a non-resident shall not be required to disclose details of his directorship in a foreign company, which does not have any income received in India, or accruing or arising in India. In other words, a non-resident taxpayer who is Director only in a foreign company, which does not have any income received in India, or accruing or arising in India, should not disclose details of such foreign company.

  1. It has been further clarified that, a non-resident taxpayer who is Director in a domestic company and also in a foreign company, which does not have any income received in India, or accruing or arising in India, should provide details of directorship in the domestic company only. It is also clarified that a resident taxpayer would continue to be required to disclose details of his directorship in any company, including foreign company, in the relevant column.

  1. It has been clarified that, a taxpayer, who is resident in India, and had at any time during the previous year-

(a) held, as beneficial owner, beneficiary or otherwise, any asset located outside India; or

(b) had signing authority in any account located outside India; or

(c) had income from any source outside India

Is required to up the information in Schedule FA in ITR Form-2, ITR Form-3, ITR Form-5, ITR Form-6 and ITR Form-7, in Part-B-TTI, before the verification part. In Schedule FA, the taxpayer is required to disclose the details of foreign assets etc. held at any time during the relevant accounting period.

  1. It has been clarified that, a taxpayer is required to file details in the Schedule FA, only if he has held foreign assets etc. at any time during the “previous year” (in India) as also at any time during the “relevant accounting period” (in the foreign tax jurisdiction).

For further details please refer the attached document.

Source: Central Board of Direct Taxes

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