Income Tax Return Forms Changed

Key changes in new ITR Forms applicable for all returns from financial year 2014-2015

1. Details of all bank accounts held by assessee

Under new ITR forms, an assessee is required to report details of all bank accounts held by him in India at any time (including opened/closed ones) during the previous year.

Following details shall be reported in respect of each bank account held by assessee in India:

 a)  IFSC Code of the Bank

 b)  Name of the Bank

 c)  Name of joint holders (if any)

 d)  Account Number

 e)  Account Balance as on 31^st March of the previous year

2. Details about the foreign travelling

If assessee has travelled overseas, the details about such travelling should be furnished in the return form. The details to be furnished in the return shall be:

 a)  Passport details

 b)  Country visited during the year and number of visits

 c)  If assessee is a resident, amount incurred from own sources in relation to such travel

3. Reporting of Aadhaar Number

The new ITR forms require assessee to provide his Aadhaar Number (if assessee has obtained the same).

4. Date of Formation by HUF

Under new ITR forms, an HUF is required to report date of its formation.

5. Reporting of amount that has remained unutilized in capital gains account

If assessee is unable to roll over the investment in new capital asset within the specified time period so as to avail of the exemptions under section 54, 54B, etc., he can deposit the sum in capital gains account scheme.

In that case, exemption to be granted to assessee shall be aggregate of actual investment in new capital asset and amount deposited in capital gains account scheme before due date of filing of return of income.

The amount so deposited in the capital gains account scheme should be utilized for investment in specified asset within specified time-limit, otherwise the unutilized amount shall be chargeable to tax in the previous year in which the time-limit expires. The unutilized amount would be taxable as short-term capital gain/long-term capital gain, depending upon the nature of original capital gain.

Under New ITR forms, requisite details are required to be provided in respect of amount so deposited in capital gains account scheme.

The details which are required to be provided if amount is deposited in capital gains account scheme are as follows:

 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

6. Details about the income taxable under DTAA

If capital gain or residuary income of assessee is taxable as per provisions of the DTAA entered into between India and a foreign country, of which the assessee is a resident, following details shall be furnished in the new return forms:

 a)  Name of the Country

 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

Further, the special tax rate on capital gain or residuary income and tax on such income as per DTAA shall be disclosed separately in Schedule SI.

7. Details about the foreign assets and foreign income

The new 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.

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.

8. Agricultural income

Unlike the existing ITR forms which require assessee to provide figure of net agricultural income which is exempt from tax, the Schedule EI in new 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.