This year, lots of changes have been made in order to simplify the income tax return forms. In order to curb black money, the department had in the earlier forms asked taxpayers to furnish the details of all their foreign trips, including the expenses incurred on those trips. This attracted a huge backlash, which prompted the department to change the forms again.
Like every year, the Central Board of Direct Taxes (CBDT) has come up with a required set of forms that a taxpayer is expected to fill while filing his/ her tax returns. This year, lots of changes have been made in order to simplify the income tax return forms. In order to curb black money, the department had in the earlier forms asked taxpayers to furnish the details of all their foreign trips, including the expenses incurred on those trips. This attracted a huge backlash, which prompted the department to change the forms again.
Let's understand all these changes before you file tax returns this year:
1. Last date extended to August 31: The deadline for filing returns for FY15 has been extended to August 31 from the existing July 31. However, I would strongly suggest that you don't keep it till the last date, especially once all the documents like Form 16/16A and other income details are in place.
2. Furnishing all bank account details: You have to declare all your bank accounts while filing tax returns. This includes bank accounts held jointly and as a single account holder. You, however, are not required to disclose the details about dormant accounts – accounts that haven't been operational for three years.
3. Foreign income: The details of any foreign income, including the details of the amount earned and the nature of income or source country need to be submitted.
4. New tax forms: CBDT had notified various changes in the income tax return forms. They are as follows:
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ITR-1
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ITR 2A
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ITR 2
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Individuals With Income from:
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Individuals and HUF Income from:
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Taxpayers and HUFs with Income from:
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Salary or pension
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Salary or pension
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Salary or pension
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| More than One house property
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More than One house property
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More than one house property or brought forward losses
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Interest on investments
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Other sources, including lottery and race horses
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Capital gains; other sources, including lottery and race horses
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ITR - 3
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ITR - 4
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ITR – 4S (Sugam)
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For partners in firm with Income from
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Taxpayers with income from
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For taxpayers with income from:
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Profit of Partnership firm
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Proprietorship Business
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Presumptive Business
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Salary or Pension More than One house property
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Professionals
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Foreign Sources/income etc.
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Capital gains
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Commission/Brokerage
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Commission/Brokerage
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Other sources, including lottery and race horses
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More than one house property
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More than one house property
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Agriculture income > Rs 5000/-
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Agriculture income > Rs 5000/-
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5. ITR-V copy to CPC office: Unlike earlier, you don't need to sent the ITR-V copy to the CPC office in Bengaluru. This is provided you submit the Aadhar card number or the 10-digit Electronic Verification Code (EVC). The new income tax returns will also have a place for mentioning the Aadhaar card number, which is one of the four ways of verifying the identity of the taxpayer. Those who don't have an Aadhar card or want to use the EVC can still send their ITR-V to the CPC office by post.
“Rishabh Parakh is a Chartered Accountant and the Chief Gardener & Founder Director of Money Plant Consulting, a leading Tax & Investment Planning Advisory Service Provider. He also runs a personal finance blog called “Mango Investor” aka AAM Niveshak at www.mangoinvestor.com . Readers are invited to send their feedback to rishabhparakh@moneyplantconsulting.net.”
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