New income tax form

New income tax form

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Income Tax
income tax deptt planning to introduce a simple income tax form

The Union Finance Ministry on Sunday came out with a simplified income-tax return (ITR) form, replacing the controversial 14-page form that had sought information on foreign trips and dormant bank accounts.

The last date for filing returns has been extended till August 31 against the normal practice of July 31, as the software for these forms is under preparation.

In forms ITR-2 and ITR-2A, the main form will not contain more than three pages, and other information will be captured in the schedules that are required to be filled only if applicable.

Form ITR-2 is needed to be filled by individuals and Hindu Undivided Families (HUF) having income from more than one house property and capital gains.

Observing that majority of individuals/HUFs who file Form ITR-2 do not have capital gains, the government has introduced new form ITR-2A for individuals who have income from more than one residential property but no capital gains from them.

Bank accounts

The government has also partially relaxed the requirement to list all bank accounts and balances. While taxpayers will have to give details of IFS code and account number of all the current/savings accounts held during the previous year, they will not be required to provide balance in their bank accounts and details of dormant accounts not operational during the last three years.

Individuals having exempt income without any ceiling (other than agricultural income exceeding Rs. 5,000) can now file Form ITR-1 (Sahaj). Similar simplification is also proposed for individuals/HUF in respect of Form ITR-4S (Sugam), the statement said.

Further, an individual who is not an Indian citizen and is in India on a business, employment or student visa (expatriate), will not mandatorily be required to report the foreign assets acquired by him during the previous years in which he was non-resident if no income is derived from such assets during the relevant previous year. As the software for these forms is under preparation, the time limit for filing the returns has been extended up to August 31, the statement added.


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