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

Skin in the game or masterful market timing?

When a company founder opens their personal chequebook to buy shares in their own business, stock markets usually applaud. To the average retail investor, it feels like the ultimate vote of confidence, a sign that the people running the show have real skin in the game and believe brighter days are ahead.

India’s freedom struggle was shaped by wider Asian political thought

As we mark 80th anniversary of independence, ‘Asianism and the Fall of Empire’ (HarperCollins India) by historian Mithi Mukherjee offers a new perspective on Ind

What is colonialism? A relook at modern history

The Chromatic World Order: The Fiction That Rules Our World  By Sajid Mohamed Aakar Books  

Monsoon session of parliament adjourns sine die

The Monsoon Session, 2026 of Parliament which commenced on July 20 was adjourned sine die on Thursday. The session provided 19 sittings spread over a period of 25 days.   During the session 11 Bills were introduced in Lok Sabha and 2 Bills were introduced in Rajya Sabha. 12 B

Consumer Justice at a Crossroads

Over the past four decades, India`s consumer protection landscape has undergone a remarkable transformation. What began with the Consumer Protection Act, 1986 as a simple mechanism to empower ordinary citizens has evolved into a comprehensive framework capable of addressing challenges ranging from mislea

Doctors, experts call for ban on junk food ads, mandate warning labels

More than 30 doctors, medical scientists and public health professionals have urged the government to take decisive action against the aggressive advertising and marketing of junk food, calling for a watershed ban on advertisements for foods high in fat, sugar and salt (HFSS) and ultra-processed foods (UPF

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter