Simplified income tax return forms are less tedious

Finance ministry notifies new ITRs which do not seek unnecessary information

GN Bureau | June 1, 2015


#income tax   #tax returns   #foreign travel   #bank accounts   #finance ministry  

A chastened government has introduced simplified and shorter income tax return forms after dumping intrusively long ITRs. The government has also extended the last date for filing of returns by a month to August 31.

The new forms — ITR 2 and ITR 2A — will have only three pages and other details will have to be filled in schedules, said a ministry statement on Sunday.

These simpler income tax return forms replace a 14-page form notified in April that would have made filing tax returns a tedious process. The older tax return forms had sought extensive details about foreign trips, bank balances and capital gains accruing to a taxpayer as the government sought to pursue tax evaders.

Under the new ITRs taxpayers will not have to disclose details of all foreign travel undertaken by them and the expenditure incurred but they will just submit their passport numbers. Taxpayers will also have to disclose all their bank accounts; however, they need not have to mention the amount in their accounts. The changes were aimed at curbing black money.

Certain bills have now provision to gather details of individuals’ earnings and spending. The black money bill to check black money stashed abroad requires compulsory disclosure of foreign assets and income and subjects evaders to stiff penalties and jail terms. In addition, with the tax department seeding permanent account number (PAN) with Aadhaar—a unique identity number that is already linked to many bank accounts—the government may be able to effectively bring tax evaders to book.

The government said it will introduce a new simplified income tax return form ITR 2A for individuals who have income from more than one house property—residential asset—but no capital gains accruing to them.

“As a measure of simplification, it has been endeavoured to ensure that in Form ITR 2 and the new Form ITR 2A, the main form will not contain more than three pages, and other information will be captured in the Schedules which will be required to be filled only if applicable,” the statement said.

ITR 2 was required to be filled by individuals and Hindu undivided families having income from more than one house property and capital gains.

It also partially relaxed the requirement of listing all bank accounts and their balances.

In a respite for non-residents, the government also removed the clause for them to mandatorily report their foreign assets.

“An individual who is not an Indian citizen and is in India on a business, employment or student visa (expatriate), would not mandatorily be required to report the foreign assets acquired by him during the previous years in which he was non-resident if no income is derived from such assets during the relevant previous year,” the government said.

Individuals having exempt income without any ceiling (other than agricultural income exceeding Rs 5,000) can now file form ITR 1 (Sahaj). Similar simplification is also proposed for individuals/HUF in respect of form ITR 4S (Sugam), it added.

Comments

 

Other News

Ram Nath Kovind to be India’s next president

 India’s 14th president is going to be former Bihar governor Ram Nath Kovind, a dalit. He triumphed over former Lok Sabha speaker Meira Kumar in the vote count that took place on Thursday.   Kovind succeeds Pranab Mukherjee, who demits office on July 25. He becomes the

At JNU, all that is beautiful and “solid has melted into the air”…

Dear “Professor” Vice Chancellor,    When the clamour is made all around us, and rightly so, about the condition of growing degeneration of quality education in the higher institutions of learning in our country, you have justly – for which you must be

Making words count

In 2016, 38 bills were enacted in parliament. During that year, on average, the time spent on legislative debate (without interruptions) was 23 percent in the Lok Sabha and 16 percent in the Rajya Sabha (calculated from the PRS Legislative Research data).  Time is, however, just one measure

Business goes north

Tyre manufacturer MRF (originally Madras Rubber Factory), which enjoys instant brand recall thanks to the presence of its logo on cricket superstar Virat Kohli’s bat, figures among the most prominent industries in Tamil Nadu. But the state does not figure in its future plans. Like another TN industry

Do you think the Central Water Commission needs to take on the responsibility of irrigation governance?

Do you think the Central Water Commission needs to take on the responsibility of irrigation governance?

Debating the idea of privacy

Is right to privacy a fundamental right? The Supreme Court on Wednesday heard arguments on the contentious issue linked to the Aadhaar debate. Here`s how the issue has been addressed by different countries, with the first reference dating to 1890.   The Supreme Court on Tuesday s





Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter