NEW I-T RETURN FORMS

A good news for most taxpayers –filling an income tax return will now be easier as compared to past.Steps have been taken by the government to lessen the hassle.You don’t have to go through the lengthy and difficult procedures any more.New I-T Return forms are out to simplify the work.Let’s have a look at some of the features of new form-

1)EXEMPT INCOME-Now,if taxpayers have an exempt income of over Rs.5000,they will fill a form ITR-1 also called Sahaj.Details like taxable income,gross total income e.t.c. have to be provided in that form.It can also be filled by people getting income from interests,salaries e.t.c.Form ITR-2(much more complicated and lengthy) no longer needs to be filled.

2)THE NEW ITR-2A FORM-This form has been recently developed for people who carry forward hindu undivided families and their losses but don’t have any capital gains or foreign assets.It’s basically a shorter version of ITR-2.It’s also for people having more than a single house and exempted capital gains.

3)CAPITAL GAINS DISCLOSURE-In the new forms,taxpayers would be required to disclose the things in details such as year of acquiring new asset,amount utilised from capital gains e.t.c..Previously,such disclosures were not required ans so people got away by not paying tax.This new disclosure policy will help the government to nab such defaulters.

4)FOREIGN ASSETS/INCOME-In new forms,there is very strict disclosure requirements for these.For e.g. where a person has to give details of foreign trusts,then in new forms,he has to disclose details such as those of trustees,of income and taxability e.t.c.If there is any default,then the consequences are serious under the Black Money and Imposition of Tax Act.

5)PRESUMPTIVE TAXATION-Form ITR-4S has to be filled for the same.Taxpayers who pay tax under the scheme of presumptive taxation will give details like how they calculate income,their gross receipts e.t.c. Proper and complete working calculations are needed.

6)OTHER CHANGES-There are plenty of changes in the new forms-taxpayers have to disclose their passport no.’s to enable govt. to keep a track of their foreign trips,e-filing is compulsory for a person who wants refund,super senior citizens can still do physical filing,there are also plans to do away with the submission of ITR-V Form e.t.c.