Simplified version proposed for new ITR forms; due date for filing of return proposed to be extended to 31-08-2015

Forms ITR 1, 2 and 4S for Assessment Year 2015-16 were notified on 15th April 2015. In view of various representations, it was announced that these ITR forms will be reviewed. Having considered the responses received from various stakeholders, various changes have been proposed to the ITR forms to ensure simplicity and convenience for the taxpayers. 

At present individuals and HUFs having income from more than one house property and capital gains are required to file Form ITR 2. It was observed that majority of taxpayers who file Form ITR 2 do not have capital gains. With a view to provide for a simplified form for these individuals and HUFs, a new Form ITR 2A is proposed which can be filed by an individual or HUF who does not have capital gains, income from business/profession or foreign asset/foreign income. 

Further, it is proposed that it shall not be mandatory to furnish details of foreign trips in new Form ITR 2A and Form ITR 2. Only Passport Number, if available, would be required to be given in these Forms. Details of foreign trips or expenditure thereon shall not be required to be furnished in the new ITR forms.

 As regards bank account details in ITR forms, only the IFS code, account number of all the current/savings account which are held at any time during the previous year will be required to be furnished. The balance in accounts will not be required to be furnished. Details of dormant accounts which are not operational during the last three years are not required to be furnished. 

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

An individual who is not an Indian citizen and is in India on a business, employment or student visa (expatriate), would 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. 

The main form of ITR 2 and ITR 2Awill not contain more than 3 pages and other information will be captured in the Schedules which will be required to be filled only if applicable. 

The utility for e-filing of return as per new ITR forms are likely to be available by 3rdweek of June 2015. 

In view of such changes, it is further proposed to extend the time limit for filing these returns up to 31.08.2015. 

Published by Business So Simple

Hi, I am business consultant working with a team of Chartered Accountants, Company Secretaries, Lawyers & MBAs. I am promoter of " Make Your Business So Simple" "Make Education So Simple" Make Life So Simple" Make Legal Affairs So Simple".

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