MSME: Requirement to Disclose Recognition Status & Registration Number in ITR Forms 5 & 6
- Streamlining Presumptive Taxation under Section 44AD:
- Waiver of criteria for presumptive taxation under section 44AD.
- Introduction of a new ‘receipts in cash’ column to disclose cash turnover or gross receipts.
- Cash turnover limit raised to Rs. 3 crores, provided cash receipts remain below 5% of total turnover from the previous year.
- Updates on ITR-6 for MSMEs:
- MSMEs using ITR-6 face additional requirements in the filing process.
- New requirements include disclosure of Legal Entity Identifier (LEI), MSME registration number, reasons for tax audit under section 44AB, winnings from online games under Section 115BBJ, and virtual digital assets.
- Stricter Reporting Obligations for Refund Seekers:
- Firms seeking refunds of Rs. 50 crores or more must provide the Legal Entity Identifier (LEI) as part of reporting obligations.
- ITR-6 mandates inclusion of acknowledgment numbers and Unique Document Identification Numbers (UDIN) for audit reports under section 44AB and section 92E.
- Importance of Staying Informed:
- By staying informed about updates in Income Tax Return forms, businesses can ensure effective compliance.
- Increasing adherence to tax regulations is essential for maintaining transparency and avoiding penalties.
In conclusion, businesses should be aware of the recent updates in Income Tax Return forms to ensure accurate filing and compliance with tax laws. These updates aim to streamline the taxation process and enhance transparency in financial reporting.
You must be logged in to post a comment.