CBDT issues FAQs on filing tax returns to help taxpayers

The revenue department on Thursday released FAQs on filling income tax returns (ITR) with regard to reporting of directorship in a foreign company and equity shares held outside India.

Through frequently asked questions (FAQs), the Central Board of Direct Taxes (CBDT) has also clarified that reporting of unlisted shares received via way of gift, will or amalgamation, and also assets held as ‘stock-in-trade’.

The FAQs are based on the queries received by the CBDT to help assessees file ITRs.

On requirement to disclose break-up of all payments and receipts during the year in foreign currency, the FAQs said: “the break-up of receipts and payments in foreign currency is required to be reported only in respect of business operations in India”.

It further said in case jewellery/motor vehicle held as stock-in-trade of business, only the aggregate values are required to be filled, and the particular details of each asset held as stock-in-trade is not required to be reported.

On long term capital gains, it said tools for computation of LTCG 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,” it said.

Alternatively, the taxpayers can themselves compute the aggregate long term gain or loss manually, and input the same directly in the respective items.

The revenue department on Thursday released FAQs on filling income tax returns (ITR) with regard to reporting of directorship in a foreign company and equity shares held outside India.

Through frequently asked questions (FAQs), the Central Board of Direct Taxes (CBDT) has also clarified that reporting of unlisted shares received via way of gift, will or amalgamation, and also assets held as ‘stock-in-trade’.

The FAQs are based on the queries received by the CBDT to help assessees file ITRs.

On requirement to disclose break-up of all payments and receipts during the year in foreign currency, the FAQs said: “the break-up of receipts and payments in foreign currency is required to be reported only in respect of business operations in India”.

It further said in case jewellery/motor vehicle held as stock-in-trade of business, only the aggregate values are required to be filled, and the particular details of each asset held as stock-in-trade is not required to be reported.

On long term capital gains, it said tools for computation of LTCG 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,” it said.

Alternatively, the taxpayers can themselves compute the aggregate long term gain or loss manually, and input the same directly in the respective items.