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Changes Notified in ITR Forms for AY 2015-16 i.e. Financial Year 2014-15

Author: Damodar Prasad Agrawal 

CBDT has vide Notification No. 41/2015 Dated15.04.2015 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.

The different ITR forms for which the changes have been notified are:

1.       ITR-1(SAHAJ) (For Individuals having income from Salary & Interest)
2.       ITR-2 (For individuals & HUF not having income from Business or profession)
3.       ITR-4S (SUGAM) (For individuals/ HUF having income from presumptive business)
A brief summary of Changes is as follows:-

·         General Changes (applicable on all forms)
1.       It is mandatory for all the income tax filers to have Adhar Card now because of the introduction of EVC (Electronic Verification Code) for verification of return of income.

2.       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.

3.       Introduction of EVC (Electronic Verification Code) for verification of return of income. This system will be applicable in the cases where the returns are manually signed and acknowledgement is sent to Bangalore.

4.       ITR-1 (SAHAJ) & ITR-4S (Sugam) cannot be filed by individual who has earned any income from any source outside India.

5.       Super Senior citizen (aged above 80 years) are now allowed to file ROI in paper form even though their income exceed Rs 5 lakhs subject to other conditions (yet to be clarified).

·         ITR-2  For Individuals and HUFs not having Income business or Profession]
1.       Details of Foreign Travel made if any (For resident and nonresident both) includes, Passport No, Issued at, name of country, number of times travelled and expenditure- Disclose details of Foreign Travel In Income Tax Return (ITR)
This schedule is required to be filled if the assessee has undertaken any foreign travel during the previous year. The countries visited and the number of times it was visited during the previous year is to be filled up. Further, mention the expenses incurred from own sources of income in such trip i.e. other than expenses incurred by the employer or any other person being a sponsor.
Schedule Requires Following Details:-
Ø  Passport Number of the Assessee
Ø  Place of Issue of Passport
Ø  Country visited during the year
Ø  Number of times visited
Ø  In case of a resident, expenses incurred from own sources, if any, in relation to such travel

Format of Schedule FT- Details of foreign travel and expenses incurred during the year is as follows :-
Passport Number
Issued at
Country visited during the year
Number of times visited

In case of a resident, expenses incurred from own sources, if any, in relation to such travel

2.       Details of utilization of amount deposited in capital gain account scheme for years proceeding to last two assessment years. Particulars asked include year of utilization, amount utilized, amount unutilized lying idle in capital gain account scheme till the date of filing of return of income.

3.       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?,

4.       For Non-resident, Income from other sources, If any income chargeable to tax at 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.

5.       In schedule FA- Foreign assets disclosure, following details added.

Ø  Foreign Bank accounts details: location of the country, name and address of the bank, the account holder's name and the peak balance maintained in the account during the year were required to be disclosed earlier; It is now further require to furnish Account number, account opening date, Interest/income accrued from such account, If any along with details of head of income and schedule under which such income is shown, if offered to tax in India.
Ø  Financial interests in an entity: country name and code, name and address, and nature of the entity where the interest is held and the total investment were required to be disclosed earlier; In 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.

Ø  Immovable property /other asset: country name and code, location of property/asset and total investment were required to be disclosed earlier; Similar disclosure requirement is also required for Immovable property outside India, capital asset held outside India, trust held outside India

Ø  Details of accounts with signing authority that have not been included in the above together with the name and address of the institution where the account is held.

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