Budget 2021: Income Tax Return (ITR) Form V change to avoid VISA cancellation proposed by ICAI

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Updated: December 20, 2020 5:24 PM

Budget 2021 Income Tax Return Expectations: In what may help avoid cancellation of VISA applications, the Institute of Chartered Accountants of India (ICAI) has suggested inserting details of exempt income in the ITR Form V acknowledgement.

income tax return budget 2021At present, the acknowledgement of ITR Form V does not contain the details of exempt income. Representational image

Budget 2021 Income Tax Return Expectations: In what may help avoid cancellation of VISA applications, the Institute of Chartered Accountants of India (ICAI) has suggested inserting details of exempt income in the ITR Form V acknowledgement.

At present, the acknowledgement of ITR Form V does not contain the details of exempt income. However, for VISA and Loan etc, ITR V acknowledgement is asked for.

“Currently, acknowledgement of ITR FOrme V does not contain the details of exempt income. For the purpose of obtaining VISA and Loan etc., only ITR V – Ack is asked for which does not have full details which result in cancellation in VISA applications,” ICAI noted in its recommendations for Budget 2021.

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“It is suggested to insert details of exempt income in the acknowledgement of ITR Form V. Earlier the acknowledgement use to have taxable as well as exempt income which has been withdrawn from current year’s acknowledgement i.e. ITR V,” the ICAI recommended.

Finance Minister Nirmala Sitharaman will present Budget 2021 on February 1. Expectations of all sectors are high from the upcoming Budget. FM Sitharaman has promised a “never before” like Union Budget as the government looks to steer the pandemic-battered economy and push growth.

ICAI has made several recommendations on direct tax laws. One of them is the suggestion to extend the due date to file ITR for assessees required to file transfer pricing report under Section 92E to 31st December of the Assessment Year (AY). This will be in line with the extension of due date for assessees liable to tax audit to 31st October.

 

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