CBDT Issued clarifications regarding filing of ITR for the AY 2019-20

CBDT through circular dated 8th August 2019 has issued clarifications in order to address queries of various stakeholders. The Income-tax return (ITR) forms for the Assessment Year (AY) 2019-20 were notified vide notification bearing G.S.R. 279(E). Dated the 1st day April, 2019. Various queries were raised by the stakeholders regarding reporting of certain details in the ITR forms, such as reporting of directorship in a foreign company, reporting of equity shares listed outside India, 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.

Significant clarification issued in the circulars are as follows:

  • In case Taxpayer identification number(TIN) is not allotted to an non-resident, 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”.
  • It has been clarified that in case of shares held of a company during the previous year, which are listed in a recognized stock exchange outside India, the same not shall be reported in the column “Whether you have held unlisted equity shares at any time during the previous year” of the ITR.
  • In case of equity shares held of a company which were previously listed in a recognized stock exchange, but got delisted subsequently, and PAN of such delisted company cannot be obtained, then default value in case of PAN i.e. “NNNNN0000N” can be entered in the ITR.
  • In case unlisted equity shares which has been acquired or transferred by way of gift, will, amalgamation, merger, demerger, or bonus issue etc., the same shall be entered at zero or the appropriate value against “cost of acquisition” or “sale consideration” in the relevant column in the ITR.
  • In case of sale of land and building to a non-resident, the PAN of buyer is required to be quoted in the Table A1/B1 in Schedule CG of ITR only if tax is deducted under Section 194-IA of the Income Tax Act, 1961.
  • 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.

Click here to see circular.