Clarification in respect of filling up of the ITR forms for the assessment year 2019 20
Circular No. 18/2019 was issued by the Central Board of Direct Taxes on 8 August 2019. Its subject is Clarification in respect of filling up of the ITR forms for the assessment year 2019 20.
This is a clarification. The Board is stating how it reads a provision. That reading binds the department; it does not bind a court, and where the section says otherwise the section wins.
Answers queries thrown up by the return forms for assessment year 2019-20, which were notified by G.S.R. 279(E) dated 1 April 2019. A non-resident with no Taxpayer Identification Number in his jurisdiction of residence gives his passport number instead and names the country that issued the passport as the jurisdiction of residence. A director in a foreign company with no PAN selects 'foreign company' in the type of company drop-down, and PAN is then not mandatory; but a non-resident or a resident but not ordinarily resident must still disclose a foreign directorship even where the company has no income accruing or arising in India. On the unlisted equity shares column, shares listed on a recognised stock exchange outside India are not to be reported, while shares of a foreign company already shown in Schedule FA and shares held as stock-in-trade are; only an entity registered under the Companies Act and not listed on a recognised stock exchange has to be reported, which answers the query on co-operative banks and credit societies; where a company has been delisted and its PAN cannot be obtained, the default value NNNNN0000N may be entered; and where unlisted shares came or went by gift, will, amalgamation, merger, demerger or bonus issue, zero or an appropriate value may be entered for cost of acquisition or sale consideration. In Schedule CG, on a sale of land and building the buyer's PAN is mandatory only where tax was deducted under section 194-IA or the PAN appears in the documents, and for property outside India the details of the property and the buyer's name must invariably be given.
After the forms, instructions and e-filing utilities were released, stakeholders raised various queries about filling them up, and the Board answered them.
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Circular No. 18 of 2019
F.No. 370142/1/2019-TPL (Pt-1)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
(TPL Division)
***
Dated: 8th August, 2019
Clarification in respect of filling-up of the ITR forms for the Assessment Year 2019-20
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. Subsequently, the
instructions for filing ITR forms were issued and the software utility for e-filing of all the ITR
forms were also released. After notification of the ITR forms various queries have been raised by
the stakeholders in respect of filling-up of the ITR forms. In order to address such queries,
following clarifications are issued. __
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.
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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 recognised 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.
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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 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?
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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.
(Salil Mishra)
Director (TPL-IV)
Copy to:-
1. PS to FM/ OSD to FM/ OSD to MoS(R).
2. PS to Secretary (Revenue).
3. The Chairperson, Members and all other officers in CBDT of the rank of Under
Secretary and above.
4. All Pr. Chief Commissioners/ Pr. Director General of Income-tax – with a request to
circulate amongst all officers in their regions/ charges.
5. Pr. DGIT (Systems)/ Pr. DGIT (Vigilance)/ Pr. DGIT (Admn.)/ Pr. DG (NADT)/ Pr.
DGIT (L&R).
6. CIT (M&TP), CBDT.
7. Web manager for posting on the departmental website.
When filling or defending an assessment year 2019-20 return, or on a defect notice or a processing adjustment arising from the directorship, unlisted share or capital gains schedules.
It mentions. Circular No. 18/2019
Source: the Income Tax Department’s own published text — its page for this instrument.