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CBDT has notified ITR Forms 1, 2 and 4S. However, after representations received from various stakeholders, the CBDT came out with simplified version of ITR forms 1, 2, 2A and 4S.
Now the CBDT has notified the remaining ITR forms, Forms 3, 4, 5, 6 and 7 vide Notification
Different forms are prescribed for different taxpayers. The following table gives an overview of the return forms applicable to different taxpayers.
ITR Form | Taxpayer |
ITR-3 | This form shall be used by an individual or HUF: ■ Who is a partner in a firm; and ■ If his income chargeable to tax under the head ‘Profits or gains from business or profession’ does not include any income except income by way of any interest, salary, bonus, commission or remuneration due to, or received by him from such firm. |
ITR-4 | This form is relevant for an individual or HUF who is carrying on a proprietary business or profession. |
ITR-5 | This ITR form can be used by a firm, LLP, AOP, BOI, artificial juridical person, cooperative society or local authority. However, a person who is required to file return in ITR 7 shall not use this form. |
ITR-6 | This form shall be used by a company, other than a company claiming exemption under section 11, to file its return of income. |
ITR-7 | Applicable to a persons including companies who are required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) (i.e., trusts, political parties, institutions, colleges, etc.) |
Details to be reported in respect of each bank account held in India by assessee are same as earlier i.e.
(a) IFSC Code of the Bank
(b) Name of the Bank
(c) Account Number
(d) Nature of the bank account, i.e., current account or saving account
HUF is required to report date of its formation in new ITR Form.
Aadhaar number and passport number are required to be given in new ITR forms (if assessee has obtained the same).
(a) Previous year in which asset is transferred
(b) Section under which exemption is claimed
(c) Year in which new asset is acquired
(d) Amount utilized out of capital gains account scheme to acquire new asset
(e) Amount that has remained unutilized in capital gains account scheme or amount which is not used for making investment in specified new asset
The ITR forms seek more details about the foreign assets and income from any source outside India. Schedule FA is substituted which requires assessee to provide detailed information about such foreign assets and income. The additional disclosures in the new ITR form shall be as under:
(1) Foreign Bank Account: (a) Status of account holder (i.e., Owner/Beneficial Owner/Beneficiary) (b) Date of opening of such bank account; (c) Interest accrued in the account; and (d) Details about the interest offered to tax in the return.
More read: section 2 41 of the income tax act
(2) Financial Interest in a foreign entity: (a) Nature of financial interest (direct, beneficial ownership or beneficiary) in such entity; (b) Date since such interest is held; (c) Income accrued from such interest; (d) Nature of income; and (e) Details about the income offered to tax in this return.
(3) Foreign Immovable Property or any other capital asset: (a) Whether ownership in such asset is direct or beneficial or as beneficiary; (b) Date of acquisition of such asset; (c) Income derived from such asset; (d) Nature of income; and (e) Details about the income offered to tax in this return
(4) Signing authority in any foreign account: (a) Whether income accrued in such account is taxable in assessee’s hands; and (b) If yes then furnish details about the income offered to tax in this return
(5) Trustee or Beneficiary or Settlor in a foreign trust: (a) Date since the position of trustee or beneficiary or settlor held in foreign trust; (b) Whether income derived from the trust is taxable in assessee’s hands; and (c) If yes, details about the income offered to tax in this return
(6) Any other income derived from any source outside India: (a) Country Name and Code; (b) Name and address of the person from whom income is derived; (c) Amount of income derived; (d) Nature of income; (e) Whether income is taxable in assessee’s hands; and (f) If yes, details about the income offered to tax in this return.
If assessee owns more than one house, one house can be claimed by him as self-occupied while all other houses shall be deemed to be let out. Assessee shall be required to select a check-box in the ITR Form to indicate whether a house owned by him shall be deemed to be let-out.
As per the existing proviso to Section 112, if tax payable on long-term capital gains arising on transfer of a capital asset, being listed securities or units or zero coupon bonds, exceeds 10% per cent of the amount of capital gains before allowing for indexation adjustment, then such excess shall be ignored.
The Finance (No. 2) Act, 2014 amended the said proviso to provide that the concessional rate of tax of ten per cent shall be available only for long-term capital gain arising from transfer of listed securities (other than unit) and zero coupon bonds.
Therefore, consequential amendment is made to ITR forms in accordance with the amendment.
Now Long term capital gain from sale of MF is includable in this scheduled only if sale is on or before 10-07-2014
The Schedule EI in ITR forms requires assessee to provide following figures separately:
(a) Gross agricultural receipts
(b) Expenditure incurred on agriculture
(c) Unabsorbed agricultural loss of previous eight assessment years
(d) Net agricultural income for the year.
A new column has been inserted to require the assessee to furnish the details of change in the partners/members of the firm/AOP/BOI, as the case may be, during the previous year. Following details shall be furnished in the table newly inserted in Part A – General:
(a) Name of the partner or member
(b) Status as to whether admitted or retired
(c) Date of admission or retirement
(d) Percentage of share (if determinate)
New ITR 5 requires disclosures of rate of interest and remuneration paid/payable to the partners or members in firm/AOP/BOI or settlor/trustee/beneficiary in the trust, as the case may be.
New ITR Forms requires separate disclosures of salary or remuneration paid or payable to the partners during the year.
New ITR 5 requires separate disclosure of interest paid:
(a) Outside India or paid in India to a Non Resident
(b) Paid in India or paid to a resident
All interest payments shall be bifurcated to indicate how much interest has been paid to:
(a) The partners; and
(b) Others
For avoiding genuine hardship, by general or special order, the Board may authorize any tax authority other than CIT (Appeals) to admit an application or claim for any exemption, deduction, refund or any other relief after the expiry of the period specified under the Act.
If assessee is filing return of income pursuant to an order of CBDT under Section 119(2)(b), it shall tick the check-box [ under Section 119(2)(b)] introduced in the new ITR forms.
Generally CBDT extends date of filing of return under Section 119 in cases of natural calamities or when taxpayer faces genuine hardship in certain circumstances. Recently, the due date of filing of return for J&K taxpayers was extended by the CBDT due to devastation caused by flood in J&K.
An Explanation was inserted in section 37(1) by Finance (No. 2) Act, 2014 to clarify that any expenditure incurred by an assessee on the activities relating to corporate social responsibility (CSR) referred to in section 135 of the Companies Act, 2013 shall not be allowed to be deducted as same could not be considered to be incurred for the purposes of the business or profession.
Thus, ITR 6 has been revised to provide for reporting of expenditure on CSR activities if the same is debited to profit and loss account.
Foreign Institutional Investor (FII) and Foreign Portfolio Investor (FPI) are required to furnish their SEBI registration number in the new return Form.
Where return is being furnished under section 92CD, assessee shall provide an additional declaration that the critical assumptions specified in the agreement have been satisfied and all the terms and conditions of the agreement have been complied with.
Section 2(14) of the Act was amended by the Finance (No. 2) Act, 2014 to provide that securities held by FIIs shall be deemed as ‘Capital Assets’. The amendment was made to end the controversy of categorization of income of FIIs as business income or capital gains.
Consequential changes have been made in ITR forms in this regard.
(a) Name of the Country and Code
(b) Relevant Article of the DTAA
(c) Rate of tax under DTAA (applicable in case of residuary income)
(d) Confirmation if TRC has been obtained
(e) Corresponding section of the Act which prescribe the rate of tax (applicable in case of residuary income)
(f) Amount of income
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances, contact: singh@carajput.com or call at 9555555480
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