|
Executive Summary – The Central Board of Direct Taxation(CBDT) had made some changes regarding filing of income taxes. These include a new optional EVC code verification, new rules for income earned abroad and assets held outside India, disclosure of details of bank accounts, disclosure of foreign travel details and details of income on which tax is exempt due to DTAA. Media reports suggest that Govt. is reviewing these changes and likely to revise based on concerns raised by many people.
|
Download PDF
The Central Board of Direct Taxation (CBDT) through a notification issued on 15th April, 2015. As per this report in Financial Express, It seems that Govt. is reviewing these changes and may simplify based on the feedback and concerns. For now, we have summarized the changes originally proposed:
- A person who has earned income outside India cannot file ITR-1 (SAHAJ) & ITR-4S (Sugam).
- The taxpayers need not send the ITR-V paper document to CPC in Bengaluru. An e-filer can provide his/her Aadhaar number. This will be authenticated on the Income Tax filing website via an Electronic Verification code (EVC).
- Super Senior citizen can file their tax returns in paper format even if their income exceeds Rs. 5,00,000 provided certain conditions (not very clear yet) are fulfilled.
- When a resident or a non-resident travels abroad the details of Foreign Travel including Passport No, Passport Issued at, Destination of travel, number of times travelled and expenses incurred should be disclosed in the Foreign Travel Income Tax Return (ITR).
- A person has to mandatorily provide the details of all bank accounts (even the ones that are closed during the year) with the following information as on 31st March, 2015:
- Bank name
- IFSC Code
- Name of Joint Holder if any
- Account number
- Account balance
and I wanted this to be simpler !
- If a Non-resident earns income from other sources and his income is charged tax at special rate as per DTAA, he/she has to provide details regarding name of Country, relevant article of DTAA, tax rate and Tax Residency Certificate obtained or not.
- In case of Long Term Capital Gains and Short Term Capital Gains that Non-Residents have earned and do not have to pay tax under the Double Taxation Avoidance Agreement (DTAA). They have to give details of country living in, DTAA article and Tax Residency Certificate obtained or not.
- It is mandatory to give details of how much amount is used from the money deposited in capital gain account scheme for years before the last two assessment years. Details such as year of utilization, amount utilized, amount unused but present in capital gains account till the date of filing of tax returns should be given.
- If you have foreign assets, the following information should be disclosed –
- Foreign Bank accounts details like account number, account opening date, Interest/income received from such account and details of income and schedule under which the income is shown if it is to be taxed in India.
- Details of income from Financial interest in entities outside India along with details of income that will be taxed in India.
- Details are also required to be disclosed for Immovable property, assets and trust held outside India.
0 Comments