Filing I-T returns becomes tougher

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 Stock Market Trading Tips

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 Financial Astrology Trading Tips

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.

Experts say for travel abroad, one will have to maintain a detailed report to avoid non-compliance. "Business travellers visiting other countries, as well as individuals on foreign holidays, will need to maintain and report details of such expenses, as prescribed. Given the disclosures are required for financial year 2014-15, one will have to collate and analyse the expenses incurred on trips made in the recently concluded tax year," said Tapti Ghose, partner, Deloitte Haskin and Sells Personal Numerology Trading Tips

Disclosure of foreign assets was introduced by former finance minister P Chidabaram in 2012. But the details sought about foreign assets in the new forms are much greater, with emphasis on the disclosure of beneficiary and beneficial owners.

With these changes, this will be the fifth revamp of the income tax forms in the past five years. The forms have seen several changes, from being made smaller to larger, simpler to file for individuals and, subsequently, seeking more disclosures from individuals Commodity Trading Tips

In 2006, Saral forms were introduced. Though these were one-page forms, it was felt these were confusing, as these clubbed many items under one umbrella - there was no distinction between pensioners, stock market traders, salaried people, consultants, self-employed professionals, businessmen and part-time workers.

In 2007, the Naya Saral (more detailed) was introduced. Also, form-16 and tax deducted at source (TDS) disclosure were put in place Nifty Trading Tips

Under Sahaj forms, foreign asset disclosure was introduced by the government in 2012.

In the new forms released by the national Democratic Alliance government, an individual will have to disclose all bank accounts held by him/her.

"The new tax form requires an individual to disclose the number of bank accounts he had during the year and also report the balance as of March 31. This change will require taxpayers holding multiple accounts in individual or joint names to report the details in the tax return. These disclosures will help the government track bank accounts for which interest was not disclosed or those that had had unaccounted credits," said Vineet Agarwal, partner, KPMG Free Stock Share Tips