Headlines
New tax forms ease detailing of foreign travel, bank accounts
New Delhi, May 31
After complaints by
individual income tax payers over the new forms announced in April, the
government on Sunday notified a fresh set -- each of no more than three
pages -- and did away with the much-resented details sought on foreign
travel and bank accounts.
Since the process is still on to recast
the software to enable e-filing of the returns, the last date for
filing has also been extended to August 31, it was announced by the
finance ministry on Sunday.
Notably, against the details of
foreign travel and the expenditure thereon required from some categories
of tax payers, the new forms require only the passport number,
including that of the old one, if available or issued.
Another
clause grudged was over the bank accounts details and the balances, in
them for both operational and the dormant ones. Now, only the Indian
Financial System Code is required for all accounts. Exemption from this
has been extended to accounts dormant for over three years.
The finance ministry had acknowledged that the new tax forms had caused much concern.
"The
government has received representation on the new return forms notified
on April 15, 2015 and taking into account the concerns raised, the
government has decided to modify the return forms," Finance Minister
Arun Jaitley told the Rajya Sabha earlier this month.
The Central
Board of Direct Taxes (CBDT) had notified the new norms that required
an assessee to furnish all bank details, accounts opened or closed in
the year with the closing balance, as also the sources of funds for
expenses in an overseas travel.
The purpose of asking details
relating to foreign travel, according to the finance minister was to
tackle the menace of black money. He had further sought to justify the
forms by saying fresh details were not required in forms filed by the
majority of individual taxpayers.
The highlights of the new forms are:
-
Individuals with income without any ceiling, other than agricultural
income exceeding Rs.5,000, can now file Form ITR 1 (Sahaj). Similar
simplification for individuals and Hindu undivided families (HUFs) in
respect of Form ITR 4S (Sugam).
- A new Form, ITR 2A, can be
filed by individuals or HUFs who does not have capital gains, income
from business or profession, or foreign asset and foreign income.
-
In lieu of foreign travel details, only passport number, if available,
would be required to be given in Forms ITR-2 and ITR-2A. Details of
trips or expenditure thereon not required.
- On bank account
details, only the IFS code and the number of current and savings
accounts held during previous year will be required. The balance is not
required. Details of dormant accounts, not operational for last three
years, not required.
- A foreigner in India on a business,
employment or studies visa, not mandatorily required to report foreign
assets acquired during the previous years in which he/she was
non-resident -- if no income is derived from such assets during the
relevant previous year.
- To simplify further, the main pages of
Form ITR 2 and new Form ITR 2A, will not contain more than three pages.
Other information will be captured in Schedules, required to be filled
only if applicable.
"As the software for these forms is under
preparation, they are likely to be available for e-filing by the third
week of June 2015," a statement issued by the finance ministry said.
"Accordingly,
the time limit for filing these returns is also proposed to be extended
up to August 31, 2015 (31.08.2015). A separate notification will be
issued in this regard," the statement added.