corporate and professional update for the month

IMPORTANT UPDATE ON INCOME TAX: NOTIFIED ITR-1, ITR-2 & ITR-4S FOR A. Y. 2015-16 AND CHANGES IN RULE 12 OF INCOME TAX RULES, 1962 RELATED TO CONDITIONS OF FILING OF ITR – CBDT NOTIFIES

CBDT has vide Notification No. 41/2015 dated 15-04-2015 notified Form ITR-1, ITR-2 and ITR-4S for Assessment Year 2015-16 i.e. Financial Year 2014-15.The Notification also made Several Changes in Rule 12 of Income Tax Rules, 1962 which is related to Condition of Filing of Income Tax Return.  A brief summary of Changes is as follows:-

General (Applicable to all ITR forms)

• E filing has now been made compulsory in case of Claiming a Refund in ITR.
• Super Senior citizens are now allowed to file  ROI in paper form even though their income exceeds Rs 5 lakhs subject to other conditions.
• Introduction of Electronic Verification Code (EVC) for verification of return of income filed as an option instead of sending ITR-V to CPC, Bangalore. Accordingly, the assessee will have the following three options regarding the manner of furnishing of returns filed electronically :
• E filing using digital signature; or
• E Filing with electronic verification code (EVC)- no need to send ITR V to CPC; or
• E Filing and thereafter submitting the verification of the return in Form ITR-V to CPC.
• Introduction of furnishing Aadhar Card Number in ROI. Which will be used for the EVC system introduced as mentioned above.
• In case the assessee does not have Aadhar Card Number then the old system of submitting the verification of the return in Form ITR-V to CPC will continue.
• Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as of 31.03.2015 mandatorily to be provided. Details to be provided even for those accounts which have been closed during the year.
• ITR-1 (SAHAJ) & ITR-4S (Sugam) cannot be filed by an individual who has earned any income from a source outside India.

ITR-1

• Introduction of furnishing Aadhar Card Number in ROI. Which will be used for the EVC system introduced as mentioned above.
• Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as of 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

Changes in ITR-2

• Details of Foreign Travel made if any (For resident and nonresident both) includes, Passport No, Issued at, name of the country, number of times traveled and expenditure
• Details of the utilization of amount deposited in capital gain account scheme for years proceeding to last two assessment years. Particulars asked include the year of utilization, amount utilized, amount unutilized lying idle in capital gain account scheme till the date of filing of return of income.
• In case of LTCG & STCG not chargeable to tax to Non-resident on account of DTAA benefit, It is required to furnish Country name, Article of DTAA, TRC obtained or not?,
• For Non-resident, Income from other sources, If any income chargeable to tax at the special rate provided in DTAA, It is now required to provide details of Name of Country, Relevant article of DTAA, Rate of Tax, Whether TRC obtained or not?, Corresponding rate of tax under income tax act.
• In schedule, FA- Foreign assets disclosure, following details added.

1. a) Foreign Bank accounts details: It is now further required to furnish Account number, account opening date, Interest/income accrued from such account If any along with details of the head of income and schedule under which such income is shown if offered to tax in India.
2. b) In a similar manner, details of income from financial interest in any entity outside India along with details of income offered to tax in ITR-2 from such income.
3. c) Similar disclosure requirement is also required for Immovable property outside India, a capital asset held outside India, the trust held outside India

ITR-4S

• Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.
• Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

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