The Central Board of Direct Taxes issued the income tax return forms for the assessment year 2021-22 through Notification No. 21/2021 on 31 March 2021. These forms apply for the financial year 2020-21 and are to be used by taxpayers while filing returns. In light of the unprecedented difficulties caused by the COVID-19 pandemic, the government refrained from making major structural alterations to the forms. Instead, most of the modifications arise from the legislative changes introduced by the Finance Act, 2020.
Despite the limited nature of these changes, the new forms include a number of important updates that directly impact different categories of taxpayers. Some restrictions now prevent certain individuals from filing ITR-1 or ITR-4 in specific situations, especially those connected to deferred tax on employee stock option plans and deductions under Section 194N on cash withdrawals. These restrictions are significant as they alter the way individuals and businesses must disclose income and calculate liabilities. We explored the background of the notification, details of the restrictions, and the effect of the rules related to deferred tax and large cash withdrawals.
Notification No. 21/2021 and its significance
Notification No. 21/2021 marks a continuation of the government’s approach to simplify compliance while aligning return forms with legal amendments. In previous years, substantial revisions in return forms were introduced when major tax reforms were enacted. However, in this case, the impact of the pandemic led the authorities to retain the familiar framework to avoid burdening taxpayers.
The assessment year 2021-22 is the first period when dividend taxation rules were overhauled, when new concessional regimes under sections 115BAC and 115BAD came into effect, and when changes in tax treatment of ESOPs granted by start-ups became operational. The notification incorporates all these changes into the relevant forms without introducing additional complexities.
The restricted usage of certain forms, however, reflects a more targeted compliance strategy. This ensures that returns involving deferred taxes or special reporting requirements are filed through more detailed forms, enabling proper disclosure.
Applicability of ITR forms for different taxpayers
ITR forms are designed for specific categories of taxpayers. For individuals with simple income sources such as salary, one house property, and limited other income, ITR-1 is the most widely used return. Similarly, small businesses and professionals often rely on ITR-4 under the presumptive taxation scheme.
For the assessment year 2021-22, both ITR-1 and ITR-4 continue to remain available for the majority of small taxpayers. However, new restrictions have been introduced that limit their availability in cases involving deferred tax liability on stock options or cash withdrawals covered under Section 194N.
This marks an important policy shift. The authorities expect taxpayers in these categories to file more comprehensive return forms so that all deferred liabilities and related disclosures are properly captured.
Restriction on ITR-1 and ITR-4 for deferred tax on ESOPs
A major change introduced in the forms is that ITR-1 and ITR-4 cannot be used if tax has been deferred in respect of employee stock option plans (ESOPs) allotted by eligible start-ups.
Under the Finance Act, 2020, employees of eligible start-ups were allowed to defer payment of tax on ESOPs. Instead of paying tax at the time of exercising the option, tax can now be paid within 14 days from the earliest of the following events:
- Expiry of five years from the end of the financial year in which the option was exercised
- Date of sale of such specified security or sweat equity share by the employee
- Date on which the employee ceases to be in employment with the start-up
This provision was introduced to provide relief to employees of start-ups who often face liquidity issues when exercising stock options. However, because of the complexity of tracking deferred tax, simple return forms such as ITR-1 and ITR-4 cannot be used in these cases.
Reporting requirements for deferred ESOP taxation
Taxpayers with deferred tax liability on ESOPs are now required to make detailed disclosures in their income tax return. The new forms ask for specific information regarding the amount of income on which tax has been deferred, the applicable rate of tax, and the manner in which the liability has been calculated.
For example, if an employee exercised an ESOP in a particular financial year but chose to defer the tax, the return must clearly mention:
- The year of exercise
- The fair market value of shares at the time of exercise
- The amount of tax that stands deferred
- The point at which the deferred tax liability is triggered
These disclosures are necessary for tracking future tax obligations and ensuring compliance with the law. Since ITR-1 and ITR-4 do not provide sufficient space for such reporting, taxpayers in this category must resort to more detailed forms such as ITR-2 or ITR-3.
Restriction on ITR-1 for cases under Section 194N
Another major restriction relates to Section 194N of the Income Tax Act. This section requires banks, co-operative banks, and post offices to deduct tax at source when a person withdraws cash above certain limits from one or more accounts.
The provision specifies two thresholds:
- Cash withdrawal exceeding 20 lakh rupees in a financial year in the case of non-filers of income tax return
- Cash withdrawal exceeding one crore rupees in other cases
When tax has been deducted under this section, the taxpayer cannot use ITR-1 to file the return. This restriction applies regardless of the simplicity of the individual’s other income sources. The reason behind this restriction is that such cases require additional disclosures that are not possible in the ITR-1 format.
Why restrictions under Section 194N are important
The objective behind restricting ITR-1 in such cases is to improve monitoring of high-value cash transactions. Section 194N was introduced to discourage excessive cash withdrawals and promote digital transactions. When tax is deducted at the time of cash withdrawal, it creates a reporting trail that needs to be properly disclosed in returns.
ITR-1 is designed for individuals with straightforward income profiles. Including details of tax deducted under Section 194N in this form would complicate its structure. Therefore, taxpayers affected by this provision must switch to more comprehensive forms that allow appropriate disclosures.
No carry forward of TDS deducted under Section 194N
Another update in the return forms relates to the treatment of tax deducted at source under Section 194N. The forms make it clear that any tax deducted under this section cannot be carried forward for adjustment in future years.
In other words, if excess tax has been deducted under Section 194N in a given year, the taxpayer must claim a refund in the same assessment year. There is no mechanism to carry forward such tax for set-off against future liabilities.
This clarification is crucial because some taxpayers initially assumed that such deductions could be treated like advance tax or other TDS credits that are adjustable in subsequent years. The updated ITR forms remove this ambiguity and ensure uniform reporting.
Practical implications of restrictions in ITR-1 and ITR-4
The restrictions on the use of ITR-1 and ITR-4 mean that certain categories of taxpayers who previously enjoyed a simplified return filing process must now switch to detailed forms. For instance:
- An employee of a start-up exercising ESOPs but deferring tax liability must now file ITR-2 or ITR-3 even if all other income sources are simple.
- A businessman whose only income is presumptive business income but who has had TDS deducted under Section 194N cannot use ITR-4 and must opt for a more comprehensive form.
This change increases compliance requirements for such taxpayers, but it is necessary for ensuring full disclosure of complex tax obligations.
Examples of taxpayers affected by the new rules
To illustrate the impact, consider the following examples:
- An employee of an eligible start-up exercises ESOPs worth 10 lakh rupees in December 2020. The employee defers tax liability as allowed under the law. Even though the employee’s only other income is salary, he cannot use ITR-1 and must file ITR-2 where deferred tax reporting is possible.
- A shop owner opts for presumptive taxation under section 44AD and has business turnover of 40 lakh rupees. During the year, he withdraws cash exceeding one crore rupees and tax is deducted under section 194N. Despite being otherwise eligible for ITR-4, he must file ITR-3 because of the deduction.
- A taxpayer who had large cash withdrawals of 25 lakh rupees but did not file returns in the earlier two years faces TDS deduction under section 194N. This taxpayer also cannot file ITR-1 and must use a different form to account for the deduction.
Compliance strategy for taxpayers
Taxpayers who fall under these categories should prepare their documentation carefully. For those with deferred ESOP taxation, records of the date of exercise, fair market value of shares, and calculation of deferred tax are essential. For those affected by Section 194N, maintaining withdrawal statements and TDS certificates from banks or post offices is necessary.
Adopting the correct ITR form at the outset avoids future disputes and reduces the risk of notices. As the government continues to encourage digital filing and accurate reporting, these disclosures form a critical part of the compliance ecosystem.
Dividend Taxation Updates and Structural Changes in ITR Forms for AY 2021-22
One of the most significant areas of change in the income tax return forms for assessment year 2021-22 is the treatment of dividend income. The Finance Act, 2020 brought a major shift in dividend taxation by abolishing the Dividend Distribution Tax and making dividends taxable in the hands of shareholders. This change not only altered the way companies report distributed profits but also required corresponding updates in the return forms filed by individuals, companies, and other taxpayers.
The updated ITR forms have been designed to capture the new rules around dividends and to remove redundant references to earlier exemptions and special provisions. Beyond dividend taxation, several schedules have been either modified or removed altogether to align the return forms with the law as it currently stands. We discuss these dividend-related changes and the consequential updates in different schedules of the ITR forms, along with their implications for taxpayers.
Abolition of Dividend Distribution Tax and its impact
Until the financial year 2019-20, companies declaring dividends were required to pay Dividend Distribution Tax under section 115-O. Shareholders were largely exempt from paying tax on such income, except in cases where dividend income exceeded ten lakh rupees, which was taxed under section 115BBDA at a special rate of ten percent.
The Finance Act, 2020 abolished the Dividend Distribution Tax with effect from April 1, 2020. This meant that dividends distributed on or after this date would be taxable directly in the hands of shareholders at their applicable slab rates. As a result, the burden of taxation shifted from companies to investors.
The shift required a comprehensive restructuring of income tax return forms to capture dividend income under the correct heads and ensure accurate computation of tax liabilities for shareholders.
Updates in Schedule OS (Income from Other Sources)
Schedule OS is the section of the ITR forms where taxpayers disclose their income from sources other than salary, house property, and business or profession. Dividends fall under this category and therefore required special attention after the changes introduced by the Finance Act, 2020.
In the new ITR forms, dividend income is explicitly included as taxable under Schedule OS. Taxpayers must now report the exact amount of dividends received during the financial year and include it as part of their total income. This change ensures that dividend income is properly subjected to tax at the applicable rates for each taxpayer.
For resident individuals and Hindu Undivided Families, this means dividend income is added to their gross total income and taxed according to the slab rates applicable to them. For non-resident investors, taxability depends on the provisions of section 115A or applicable tax treaties.
Changes in Schedule SI (Special Income)
Schedule SI lists incomes that are taxed at special rates rather than normal slab rates. These include items like long-term capital gains, winnings from lotteries, and certain income of non-residents.
In previous years, this schedule also included dividend income taxable under section 115BBDA, which applied to dividends exceeding ten lakh rupees. Since section 115BBDA has been rendered redundant by the abolition of Dividend Distribution Tax, this reference has been removed from the new ITR forms.
The removal of this provision simplifies Schedule SI, but it also reflects the larger shift in dividend taxation. Now, all dividend income is taxable in the hands of shareholders at normal rates unless specifically covered under provisions applying to non-residents.
Removal of dividend exemption in Schedule EI (Exempt Income)
Schedule EI is the schedule where taxpayers disclose their exempt incomes, such as agricultural income or certain tax-free allowances. Until the assessment year 2020-21, taxpayers had to report dividend income from domestic companies up to ten lakh rupees as exempt income under section 10(34).
Since the Finance Act, 2020 made dividend income fully taxable, this exemption is no longer available. Consequently, the reference to dividend income in Schedule EI has been removed from the new ITR forms.
This change underlines the fact that taxpayers can no longer treat any portion of domestic dividend income as exempt. Even small dividend receipts are now fully taxable and must be reported accordingly.
Schedule PTI and reporting of pass-through income
Schedule PTI relates to pass-through income from business trusts and investment funds covered under sections 115UA and 115UB. Such income is exempt at the level of the trust or fund but is taxable in the hands of the unit holders.
Dividend income received through these pass-through structures also became taxable in the hands of investors after the changes brought in by the Finance Act, 2020. Accordingly, Schedule PTI continues to require details of pass-through income, including dividends, to ensure that the correct tax treatment is applied.
Taxpayers investing in Real Estate Investment Trusts (REITs) or Infrastructure Investment Trusts (InvITs) must carefully disclose their dividend income under this schedule. The structure ensures transparency in the way pass-through income is reported and taxed.
Quarterly breakup of dividend income in ITR-1
Another notable update in the new ITR forms is the requirement to provide a quarterly breakup of dividend income. This requirement was already present in most ITR forms but was missing from ITR-1, which is designed for salaried individuals with simpler income profiles.
The new ITR-1 now allows taxpayers to provide quarterly details of dividend income earned during the financial year. The primary reason behind this requirement is the computation of interest under section 234C for defaults in the payment of advance tax.
Since dividends are often received irregularly and not in predictable amounts, the quarterly breakup helps in determining whether the taxpayer was liable to pay advance tax in each quarter and whether any interest for shortfall should be levied. This addition to ITR-1 ensures parity with other forms and improves the accuracy of advance tax computations.
Removal of Schedule DDT from ITR-6
ITR-6 is the return form applicable to companies other than those claiming exemption under section 11. Until the assessment year 2020-21, this form included Schedule DDT, where companies reported details of Dividend Distribution Tax paid on distributed profits.
Since Dividend Distribution Tax has been abolished with effect from April 1, 2020, Schedule DDT is no longer relevant. The new ITR-6 has therefore removed this schedule entirely. This removal streamlines the return filing process for companies and eliminates unnecessary disclosures. It also reflects the fact that companies are no longer responsible for paying tax on distributed dividends.
Implications for domestic companies and shareholders
For domestic companies, the abolition of Dividend Distribution Tax reduces the overall cost of distributing dividends, since they no longer need to pay an additional tax over and above corporate tax. However, companies are now required to deduct tax at source on dividend payments to shareholders under section 194, ensuring that appropriate tax is collected upfront.
For shareholders, the new rules mean that dividend income adds to their taxable income and can push them into higher tax brackets. High-income individuals who previously benefited from the exemption up to ten lakh rupees now face higher tax liabilities. On the other hand, small shareholders who receive modest dividends may not be significantly affected, as their total income may still fall below taxable limits.
Practical challenges in reporting dividend income
While the new rules bring clarity, they also introduce certain practical challenges for taxpayers. Some of the common issues include:
- Identifying the exact quarter in which dividend income is received, especially when amounts are credited late by companies.
- Reconciling dividend income reported in the annual information statement with actual credits in bank accounts.
- Adjusting advance tax payments when dividend income is received after the due dates for installments.
- Claiming credit for tax deducted at source on dividends, particularly for non-resident investors who may also rely on tax treaty benefits.
Taxpayers need to maintain detailed records of dividend receipts, including dates and amounts, to comply with the disclosure requirements in the new ITR forms.
Example of dividend disclosure in ITR forms
Consider an individual shareholder who holds shares in several listed companies. During the financial year 2020-21, the shareholder receives dividends of two lakh rupees in August 2020, one lakh rupees in November 2020, and fifty thousand rupees in March 2021.
In the ITR form for assessment year 2021-22, the shareholder must:
- Report the total dividend income of three lakh fifty thousand rupees under Schedule OS.
- Provide a quarterly breakup of the income in ITR-1 or relevant form to determine interest liability under section 234C.
- Claim credit for any tax deducted at source by the companies while distributing dividends.
This example illustrates the level of detail now required in return filing compared to earlier years when such dividend income may have been partially exempt.
Broader compliance perspective
The changes in dividend taxation and corresponding updates in ITR forms underline the government’s shift toward transparency and shareholder-level taxation. By requiring detailed disclosure of dividend income, quarterly breakups, and pass-through income reporting, the authorities aim to reduce revenue leakages and ensure equitable taxation.
For taxpayers, this means greater responsibility in maintaining records and accurately reporting income. While the removal of Dividend Distribution Tax reduces the burden on companies, the compliance requirements for individual investors have increased.
Special Tax Regime under Section 115BAC
One of the most important reforms introduced by the Finance Act, 2020 was the optional tax regime under section 115BAC, available to individuals and Hindu Undivided Families. This regime allows taxpayers to choose lower slab rates of income tax in exchange for foregoing certain exemptions and deductions.
The ITR forms for AY 2021-22 make it mandatory for taxpayers opting for section 115BAC to clearly indicate their choice in the return. This is a significant compliance step, as taxpayers must formally exercise this option through the return filing process.
Additionally, the forms require adjustments of carried forward losses and unabsorbed depreciation where section 115BAC is chosen. This ensures that taxpayers cannot claim benefits disallowed under the new regime while also enjoying reduced tax rates.
Adjustments of carried forward losses and depreciation
When a taxpayer opts for section 115BAC, certain deductions are no longer available, including those linked to house rent allowance, standard deduction from salary, and various deductions under Chapter VI-A. Furthermore, losses carried forward from earlier years related to these disallowed deductions cannot be set off.
The ITR forms now include specific fields to adjust carried forward losses and unabsorbed depreciation when the new tax regime is exercised. Taxpayers must carefully compute the eligible losses that can still be set off and disclose the adjustments in the relevant schedules. This makes accurate bookkeeping critical, as any mismatch could result in tax disputes or loss of benefit.
Option for co-operative societies under Section 115BAD
Alongside section 115BAC for individuals and HUFs, the Finance Act, 2020 introduced section 115BAD, offering a concessional tax rate for co-operative societies. Like the individual regime, this option comes with restrictions on deductions and allowances.
The ITR forms for AY 2021-22 provide a separate field for co-operative societies to disclose whether they are opting for this new regime. Additionally, adjustments of unabsorbed depreciation and carried forward losses must also be made where deductions are disallowed under the scheme. This change ensures that the concessional tax regime for co-operative societies is administered with proper checks and balances.
Adjustments for companies under Section 115BAA
For domestic companies, section 115BAA introduced by the Finance Act, 2019 continues to provide an option for concessional taxation at reduced rates.
However, the ITR forms for AY 2021-22 clarify that adjustment of unabsorbed depreciation and losses linked to disallowed deductions under section 115BAA is no longer separately required. This indicates a move towards simplification, ensuring that companies opting for this scheme do not need to provide multiple overlapping disclosures.
Increase in tax audit threshold
The threshold for mandatory tax audit under section 44AB has been raised to ten crore rupees from the earlier limit of five crore rupees, provided that cash receipts and payments do not exceed five percent of total receipts and payments.
The ITR forms for AY 2021-22 incorporate this amendment, requiring taxpayers to confirm whether their turnover exceeds the enhanced threshold and whether the audit provisions are applicable. This change benefits businesses that primarily operate through digital transactions, as they may now avoid audit requirements unless their turnover crosses the higher limit.
Clause-wise disclosure of income taxable under Section 115A
For non-resident taxpayers earning interest income covered under section 115A read with section 194LC, the ITR forms now require detailed clause-wise disclosures.
This ensures that each category of income eligible for special rates is separately reported, along with the applicable rate of tax. This measure enhances transparency and prevents errors in applying concessional rates to eligible income streams.
Safe harbour limit under Section 50C
Section 50C deals with the valuation of property for the purpose of computing capital gains on transfer of immovable property. The Finance Act, 2020 increased the safe harbour limit from five percent to ten percent, allowing the declared sale consideration to deviate up to ten percent from the stamp duty value without triggering additional taxation.
The new ITR forms incorporate this change by adjusting the computation fields in schedules related to capital gains. Taxpayers reporting sale of immovable property must now apply the revised safe harbour limit when computing capital gains.
Updates in Schedules 112A and 115AD
Capital gains reporting has been refined in the ITR forms for AY 2021-22, especially with respect to listed equity shares and units of equity-oriented funds.
Taxpayers are now required to specify the nature of security in schedules 112A and 115AD when reporting long-term capital gains taxable at special rates. The cost of acquisition rules have also been clarified in line with grandfathering provisions applicable to equity shares acquired before February 1, 2018. This ensures greater accuracy in reporting, as many taxpayers faced difficulties in computing indexed cost of acquisition under the grandfathering mechanism.
Disclosure of spouse’s audit requirement in Schedule 5A
Schedule 5A is used for reporting income apportionment in cases where the Portuguese Civil Code applies, such as in the state of Goa. A new requirement has been introduced in this schedule for taxpayers to disclose whether the spouse is subject to tax audit under section 44AB or transfer pricing audit under section 92E.
This disclosure ensures that the tax authorities have complete visibility of audit compliance within such cases of joint ownership of income.
Deduction under Section 80M for domestic companies
The Finance Act, 2020 introduced section 80M, which allows a domestic company receiving dividends from another domestic company to claim a deduction when such dividends are redistributed.
This provision prevents cascading taxation of dividends within corporate structures. The ITR forms for AY 2021-22 now provide a specific field for claiming this deduction, ensuring that eligible companies can avail the benefit while also disclosing redistributed dividends.
Removal of Schedule DI
Schedule DI was introduced in the ITR forms for AY 2020-21 to allow taxpayers to claim deductions for investments made in the extended period permitted during the COVID-19 lockdown.
Since this relief was specific to that financial year, Schedule DI has been removed from the ITR forms for AY 2021-22. This removal simplifies the forms and eliminates redundant disclosures.
Reporting of donations under Section 80GGA
The new ITR forms require taxpayers claiming deduction for donations made under section 80GGA to report the date of such donations. This ensures that the donations are matched with the financial year in which they were made and prevents misuse of the provision by backdating contributions.
Reference to Form 16D in TDS schedules
Form 16D relates to tax deducted at source under section 194M, which applies to certain payments by individuals and Hindu Undivided Families for contractual and professional services. The new ITR forms explicitly include a reference to Form 16D in the TDS schedules, ensuring that taxpayers can match tax credits claimed with the certificates issued.
Removal of ineligible undertakings from Section 80-IB schedule
Certain ineligible undertakings have been removed from the schedule relating to deductions under section 80-IB. This streamlines the process of claiming deductions by ensuring that only eligible undertakings are reflected in the ITR forms.
No separate disclosure for life insurance business
In earlier ITR forms, a separate disclosure was required for income from life insurance business under section 115B. The new forms have eliminated this requirement, reducing compliance burdens for insurers.
Compliance with transfer pricing requirements
An additional question has been introduced in the ITR forms to verify whether the taxpayer has complied with transfer pricing documentation requirements under section 92E. This ensures greater accountability for entities engaged in international transactions or specified domestic transactions.
Refinement in treatment of losses
The ITR forms for AY 2021-22 remove the need to separately disclose carried forward losses into pass-through and normal losses. This simplification makes it easier for taxpayers to report losses without categorizing them unnecessarily.
Furthermore, short-term capital gains not covered under section 111A can no longer be reported in Schedule PTI. This ensures consistency in the treatment of gains arising from pass-through entities.
Cap on deduction under Section 54EC
The new ITR forms explicitly mention the cap on deduction available under section 54EC for investment in specified bonds on the transfer of long-term capital assets. This disclosure clarifies the maximum deduction limit and ensures taxpayers do not inadvertently claim excess benefits.
Business code requirement for Section 80P deduction
Taxpayers claiming deduction under section 80P, which is applicable to co-operative societies, are now required to provide the business code of their activity. This enhances accuracy in identifying the nature of business conducted and prevents misuse of the provision.
Enhanced focus on compliance
The overall changes in the ITR forms for AY 2021-22 highlight a clear emphasis on compliance, transparency, and alignment with recent legislative amendments. Whether through adjustments for new tax regimes, refinements in capital gains schedules, or mandatory disclosures linked to donations and audit requirements, the forms are designed to capture a more detailed picture of a taxpayer’s financial activities.
Conclusion
The Income Tax Return forms for Assessment Year 2021-22 mark an important step in aligning tax reporting with the structural reforms introduced by the Finance Act, 2020 and subsequent legislative changes. While the overall format of the forms has not undergone major transformation due to the disruptions caused by the COVID-19 pandemic, the updates are significant in ensuring consistency, transparency, and compliance.
The most prominent changes include the restrictions on simplified return forms where deferred tax on ESOPs or cash withdrawals under section 194N are involved, the detailed disclosures mandated for dividend income following the abolition of Dividend Distribution Tax, and the integration of new tax regimes under sections 115BAC, 115BAD, and 115BAA. Each of these provisions required careful modifications in the ITR framework so that taxpayers could exercise their options clearly and ensure appropriate adjustments for carried forward losses, depreciation, and ineligible deductions.
Equally important are the refinements in capital gains reporting through schedules 112A and 115AD, which now demand precise disclosure of the nature of securities and correct computation of cost of acquisition under grandfathering rules. The increase in the safe harbour threshold under section 50C, the introduction of section 80M for dividend deduction to domestic companies, and specific reporting requirements for donations and audit compliance reflect the growing emphasis on capturing every material aspect of income and deductions in a structured manner.
By removing redundant schedules such as Schedule DI, deleting references to abolish provisions like section 115BBDA, and simplifying disclosure requirements for insurance and carrying forward losses, the Central Board of Direct Taxes has also worked toward reducing unnecessary complexities for taxpayers. At the same time, the inclusion of granular questions on transfer pricing, spouse’s audit requirements under Schedule 5A, and business code details for section 80P ensures that no critical compliance area is left unchecked.
Taken together, these 30 key changes show a balanced approach. On one hand, the forms have been simplified where old provisions have become irrelevant, and on the other, they have been made more detailed where transparency and accountability are crucial. For taxpayers, this means a higher level of diligence in preparing returns, particularly in areas of capital gains, dividend income, ESOP taxation, and optional tax regimes. For tax authorities, it translates into more reliable data, better enforcement of new provisions, and streamlined administration of the income tax law.
In conclusion, the ITR forms for AY 2021-22 reflect continuity, adaptation, and reform. They ensure that taxpayers have the flexibility of new tax regimes, the clarity of revised dividend taxation, and the responsibility of accurate disclosures, all while minimizing redundancy. The shift is not just procedural but represents a larger transition in the Indian tax system towards simplification, digitization, and robust compliance.