2] Significant economic presence: From current fiscal, non-resident taxpayers would require to confirm if there is any significant economic presence for the reporting period. Such reporting will trigger greater scrutiny by the income tax officer for determining its impact on the attribution of profits for such transactions in India because it is an accepted fact that attribution of profit to India is always a subjective issue and cannot be concluded with certainty by either side.

3] ESOP option: From AY 2022-23, ITR forms have been amended and income tax department has added a new schedule that will capture the details of deferred tax on ESOPs. This will help in tracking the amount that stands deferred due to extended timelines provided under the provision of the Act in the case of ESOPs. But, where the employee ceases employment in between the exercise date and transfer date, the already disclosed deferred tax amount will not convert to actual tax payment. Hence, it is likely to trigger questions from the tax officer.

4] Specific mention of secondary adjustment: While filing ITR for AY 2022-23, income tax paid on the amount repatriated to India under secondary adjustment needs a specific mention in ITR forms. The new form has been amended to include details to be filled by the taxpayer for such adjustments in all the assessment years.  This will help the income tax office in tallying the additional tax that the taxpayer has paid on account of secondary adjustment and will form a ready material to reconcile such amounts.