‘Bhaubali Returns’ is awaited, but wait for New Income Tax ‘Returns’ is over

CA Umesh Sharma

Arjuna (Fictional Character): Krishna, Income Tax department has notified all remaining ITR’s for FY 2014-15. As audience wait for next release of movies, now taxpayers have to wait for next version of returns. Like movie sequels now Income tax returns also have their sequels. So please explain what are the changes made in these ITR.

Krishna : Arjuna, rightly said. Now movie sequels are named like Singham returns, Tanu weds manu returns, taxpayers also have to wait for New Income tax returns in this era of Information Technology. But wait is over, now taxpayer and tax consultants will have to rush to file returns within the given time. Now taxpayers will have to give attention towards filling of income tax return for F. Y. 2014-15. Due date for filling Income Tax Return is 31^st August and 30^th September, so only one or two months left for it. Government has made available the Income Tax Return for F.Y. 2014-15. Government makes changes in the ITR forms according to amendments in Budget and for gaining more information from the Taxpayer. It is necessary for the Taxpayer to understand these changes in the ITR.

Arjuna (Fictional Character): Krishna, please explain major changes in the new forms of Income Tax Return?

Krishna : Arjuna, in the last month Government has notified the ITR form 1, 2, 2A and 4S and now Government has notified the remaining ITR Form 3, 4, 5, 6 and 7. Taxpayer must understand changes in ITR forms and they are as follow:

1. If Taxpayer is having Aadhar Card then Aadhar Card Number is required to be mention in ITR form. If this number is mentioned in Income Tax Return then taxpayer will not be required to send copy of Acknowledgment to Bangalore. Verification will be done on the basis of Aadhar Card Number.
2. Taxpayer is required to give details of all Bank Accounts held along with IFSC Code, Bank Name, Account Number, and Type of Account. Taxpayer should disclose transactions of all Bank Transaction in Books and details of them should be mentioned in ITR.
3. Taxpayer has to pay tax on capital gains i.e. on the profit on sale of House Property, Plot, etc. In this deduction can be availed according to some provisions. For availing deduction the unutilized amount is required to be kept in specific account (capital gain account). Now, details of the same are required to be mentioned in ITR.
4. As Government is focusing more on foreign transaction from this year passport number of an Individual is required to be mentioned in ITR.
5. If capital gain of nonresident is not taxable in India then details of the same is required to be mentioned in ITR.
6. If the Income of the Assessee is taxable as per the provisions of Double Tax Avoidance Agreement (DTAA) entered between India and any foreign country then the said details are required to be mentioned in ITR.
7. Earlier Taxpayer was required to provide details of Asset held in foreign Country, but now Taxpayer is required to give details of Income generated in foreign country. These details are required to be provided even though the assesse is beneficiary or beneficial owner.
8. Agricultural Income is Exempt but now taxpayer is required to provide the details of Income Earned and Expenses made from the Agricultural Activities.
9. Details of the change in the partners of the partnership firm are required to be provided. E.g. Name of the Partner, Share of profit or loss etc.
10. Partnership Firm is required to provide the details of the Rate of Interest paid to partner along with remuneration.
11. Partnership firms are required to disclose the details of remuneration paid to partners in the profit and loss schedule of ITR separately. Further interest paid has to be separately shown in two categories i.e. Interest paid to Partners and interest paid to others.
12. Company Taxpayers are required to provide the details of expenses made on Corporate Social responsibility in the Income Tax Return.
13. If any company is engaged in the business of Manufacturing and they have made investment in plant and machinery then a new field is provided in the Income tax return for claiming allowance under section 32AC.
14. If Assessee owns more than one House Property then one House property can be claimed as self-occupied whereas the other is considered as Deemed to be let out. Here assessee is required to give details of the property whether it is let out or deemed let out.

Arjuna: Krishna, What one should learn from this sequel of “returns”?

Krishna: Arjuna, Now a days Department is collecting more and more details from the Taxpayer. To curb Black Money government is paying more attention towards foreign transactions. Details of all Bank Accounts are being taken so as to avoid unaccountability of Transactions. From now onwards Taxpayer has to be careful and it should disclose all transactions and details in filling Income Tax return. Now Income Tax return does not contain only numbers but a lot of information is required to be given in it. So Taxpayer has to get ready by this time only and has to file return within Due Date. Taxpayer should keep in mind above mentioned information before filling return otherwise difficulty may arise. In movies audience get new surprises in sequels and await for it like in Bahubali, now taxpayers also get surprises in new Income Tax returns. Trend in movies of sequels will continue in Income tax returns in future also. So get ready for it and get surprises.

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