New Changes in Income Tax Return Filing
New Changes in Income Tax Return Filing The Government of India has come out with the new Income tax return forms and Tax filing procedures. The Department of Income Tax has implemented these changes in an effective manner to provide some ease in the e-filing of Income Tax Return.
Following are the key changes:
- The credit of Income Tax Refund: In the previous years, the taxpayers were given an option to claim a refund through cheque or credit into a bank account. But now all taxpayers will receive the income tax refund directly into their bank accounts.
- Introduction of Form ITR 2A: The Government has introduced Form ITR – 2A for individuals and the Hindu Undivided Family (HUF) assesses. In the previous years, the assessee was supposed to file ITR – 2 for exempted income above Rs. 5000, income from lottery winnings, capital gains, income from a horse race or from any asset outside India. A new ITR 2A form is introduced and can be filed in respect of income from salary, any number of house property, other sources including lottery winnings and horse racing and clubbed income of minor child, but does not provide for any income from capital gains, income from business or profession, foreign assets or foreign income.
- ITR – 1 even if income exempt is more than Rs.5000: An individual or Hindu Undivided Family who has earned some income which is exempt from tax without ceiling limit other than agricultural income exceeding of Rs 5,000, can now file Form ITR 1 (Sahaj). Earlier, an individual with exempt income for e.g. dividend income of more than Rs 5,000 was required to file ITR-2.
- Brought forward of unclaimed credit of TDS or TCS: Earlier, there was no mechanism to carry forward the TDS / TCS that was not related to the given financial year. However, the new ITR forms provide for details to be entered in respect of unclaimed TDS / TCS of the earlier financial year(s) and unclaimed TDS/TCS of the present year to be carried forward to the subsequent year.
- Details of all bank accounts: It is now pertinent to mention details of all Bank Accounts such as account number and IFSC code, which are held at any time during the previous year. However, there is no need to mention the balance of the respective bank accounts.
- Passport & Aadhar Card Number: The New income tax return requires optional information about Aadhar Card number and Passport. Through Passport number, the Government is initiating the process to monitor transactions relating to foreign travel and source of income for funding the travelling expenses.
- Non-reporting of foreign assets: There is no requirement to report the foreign assets acquired by an individual who is not an Indian citizen and who is staying in India for business, employment or on student visa provided there is no income earned from such assets during the relevant financial year.
Hopefully, the changes would make things easier for the taxpayers.