| Filing I- T returns becomes tougher |
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New Delhi, 17 April The income tax ( I- T) department has released new I- T return forms to replace existing ones. The new forms seek enhanced disclosure of foreign assets — financial and physical — income generated through foreign assets, and the beneficiaries and beneficial owners of these assets. Disclosures have been enhanced not just for foreign assets, which was expected as a precursor to the Undisclosed Foreign Assets and Income Bill ( black money Bill), but also for domestic assets. Sources say higher disclosure of domestic assets will help check undisclosed domestic ( benami) assets, which will form a part of the benami property Bill to be introduced by the government. For domestic disclosures, the new tax forms will seek information about the capital gains accrued through trading activity, with a detailed break- up of the long- term capital gains, short- term capital gains and the rate at which they are being taxed. Disclosure of agricultural income was required earlier, too, but now, forms seek a more detailed break- up, with information on expenses and unabsorbed losses for the past eight years. Another disclosure sought is whether one has travelled abroad, as well as the expenses incurred during the travel. " We would need to disclose whether the expenses incurred during foreign travel were from a personal account or billed to the company, while on an official trip. Now, we are supposed to file returns for this year with such details being sought… we are not sure whether we will be able to meet the deadline. But we need to, considering the repercussions of not filing it could be penalisation under the black money Bill," said an industry representative. Turn to Page 3 > New forms seek detailed break- up of capital gains, foreign assets, beneficiaries, foreign travel and expenses incurred EVOLUTION OF I- T FORMS UPA- I ( 2004- 05) |Introduced rule 1/ 5 of disclosures |Required disclosure of financial investments in return forms |Was discontinued due to being too onerous UPA- I ( 2006- 07) |Introduced Saral forms |A one- page form that put all under one umbrella |No distinction between pensioners, stock market traders, salaried people, consultants, self- employed professionals, businessmen and part- time workers |Had confusing sections on capital gains and income from house property |Discontinued as being too confusing UPA- I ( 2007- 08) |Lengthier forms could be filled online |Had to attach Form 16s, TDS certificates, proof of investments and school fee receipts with tax return UPA- II ( 2012– 13) |Sahaj forms introduced for disclosure of foreign assets |Financial interest in any entity |Immovable property and other assets NDA ( 2015– 16) |Sahaj forms have more detailed disclosure of foreign assets with details of beneficiaries required |Capital gains break- up |Disclosure of foreign travel and travel expenses |More detailed break- up of agricultural income ECONOMY 4> >Jaitley pitches for low taxes |
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