by Mr. Rakesh Nangia, Nangia & Company.
The income tax (IT) department has provided a
huge relief to individuals & HUFs by simplifying the return forms, which
had caused a lot of consternation among taxpayers.
In April, 2015 the CBDT notified ITR forms for
individuals / HUFs with cumbersome disclosures, but these were withdrawn within
a day because of representations from various groups.
Apart from introduction of a new form - ITR 2A —
the IT department has now proposed ITR 1, ITR 2 & ITR 4S to be simplified,
though additional disclosures have definitely gone up compared to last year.
ITR 1 (SAHAJ)..!
ITR 1 (SAHAJ) is meant for individuals with
income from salaries, one house property and other sources.
It is proposed that this form will now cover
exempt income without any ceiling (other than agricultural income exceeding Rs.
5,000).
ITR 2..!
ITR 2 is meant for individuals / HUFs not having
income from business or profession. It covers capital gains and income from
more than one house in addition to the income sources covered by ITR 1.
At present, ITR 2 is used by individuals / HUFs
having income from more than one house and capital gains.
The government has proposed to introduce a new
form, i.e., ITR 2A from this year, which can be used by individuals / HUFs not
having capital gains income, income from business / profession or / foreign
assets / or income.
Moreover, both these forms will not contain more
than three pages unlike the form last year, which had 14.
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| Rakesh Nangia, Nangia & Company |
ITR 4S (SUGAM) ...!
ITR 4S (SUGAM) is used by individuals with
presumptive income earned in India through prescribed eligible means.
It is proposed that ITR 4S shall also include the
exempt income disclosure like ITR 1. In respect of foreign travel details,
excessive disclosures like details of foreign trip or expenditure incurred will
not be required to be filled up. Instead, only passport No.would be required to
be given.
As far as bank account details are concerned, it
is proposed that only the IFS Code and account number of all the current /
savings account, which are held at any time during the previous year, will be
required to be mentioned. It is also proposed that the balance in accounts and
details of dormant accounts not operational since last three years, which were
required in the ITR forms released in April this year (2015), will not be
required to be furnished.
It is further proposed that an individual, who is
not an Indian citizen and is in India on a business, employment or student visa
(expatriate), would not mandatorily be required to report the foreign assets
acquired by him during earlier years in which he was non-resident if no income
is derived from such assets during the relevant previous year.
It comes as a big relief for the expatriates who
come to India for employment and may qualify for resident and ordinary resident
(ROR) in India considering their duration of stay in India.
As the software for these forms is under
preparation, the time limit for filing returns in these forms is also proposed
to be extended from July 31 to August 31 this year (2015)
About the author...!
The writer Mr. Rakesh Nangia is managing partner
at Nangia & Company.
With inputs from Amit Arora, manager, Nangia
& Co.
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