Indore (Madhya Pradesh): From this year, reporting of Section 43B (h) related to timely payment to MSMEs is mandatory in the Income Tax Return (ITR), income tax expert CA Deepak Maheshwari said on Monday. 

Similarly, in the Capital Gain Schedule, details of sales made before and after July 22 ,2024, willhave to be shown separately. Earlier, on showing return income of more than Rs 50 lakh, theschedule of asset liability had to be filed in the return. Now according to the new rules, therewill be an obligation to file the schedule of asset liability only when the return income is morethan Rs 1 cr.

CA Maheshwari was addressing a seminar organised under the joint aegis of Tax Practitioners Association and Indore CA Branch here. In the seminar, important amendments made in Income Tax Return Forms (ITR) and Tax Audit Report (Form 3CD) for Assessment Year 2025-26 were discussed in detail.

The keynote speaker, CA Maheshwari explained the various technical and legal amendments made in the ITR from a very practical point of view and said that the intention behind the latest entries made by the Income Tax Department is to increase transparency and ensure proper matching of data.

He said that till October 1, 2024, the liability of tax on the gain on share buyback was on thecompany and on the subsequent share buyback, this liability fell on the shareholder.

Disclosures related to these will now have to be given in the return. There is an anomaly in the new provision here that now the shareholder will have to pay tax on the entire amount received due to share buyback and no exemption will be given on any cost from it, even the purchase cost. That is against the principle of natural justice, he said. 

He said that the return should be filed only after matching the Annual Information Statement (AIS) and Taxpayer Information System (TIS) details so that possible notice can be avoided.

Recent interpretations made in the Income Tax Act, such as recognition of loss on share buyback and increasing the limit of exemption on long-term capital gains under 112A, were also explained with examples.

CA Abhay Sharma, Secretary of TPA, conducted the seminar. On this occasion, a large numberof members, including CA Shailendra Singh Solanki, CA Prakash Vohra, CA Manoj Goyal, CAAvinash Khandelwal, CA Vijay Bansal, Nilendu Dave, Govind Goyal, CA Sanket Mehta, CA Umesh Goyal, CA Yogesh Talwar, and CA Nilesh Maheshwari were present.