The Income-Tax department has notified new income-tax return (ITR) forms. Tax department updates ITR forms every year, introducing changes. These changes usually require us to give more information, and so you have to be prepared with the right data during tax filing. Here are key things you should be prepared for.
ITR-1 and ITR-4 are already available on the income- tax department’s e-filing portal. These forms are applicable for IT returns filers who are either director in a company or have invested in unlisted equity shares.
Disclose other component of salary packet
Apart from your salary, you will be required to disclose other component of your package. Salaried employees have to report the value of perks, profit in lieu of salary, exempt allowances and also deductions for entertainment allowance, professional tax and standard deduction separately. Open your salary slip to know these amounts.Verify them with your Form-16 when it’s given by your employer in May-June.
According to income-tax norms, a property buyer has to deduct TDS at the rate of 1% if the value of the property is over Rs 50 lakh. Now, an amendment has been made in the ITR form to disclose such information by the seller. So, disclosure of the buyer’s information is mandatory if tax is deducted. Or, if PAN is quoted by the buyer in the documents. The mandatory disclosure requires the name and PAN of the buyer, the percentage share, the amount and the property address.
Interest income details
If you have earned interest income, be prepared to give detailed information of such sources. Separate disclosures are now mandatory for interest income from bank savings account, fixed deposits and income-tax refund. You will get these figures in bank passbooks or statements.
Senior citizens having interest income and claiming deduction under Section 80TTB have to report it in the new space provided.
Flying out days
If you travel out of the country frequently, you just may need to provide more details. Yes, a self-declaration on the residential status of an individual is not sufficient any more it seems. The Income-Tax department now wants individuals to report the number of days spent in and outside India.
Do remember a person is considered a tax resident only if he/she is present in India for at least 182 days or more in a financial year, or 60 days or more in a financial year and 365 days or more during the preceding four financial years. Income is chargeable to tax in India based on an individual’s residential status. So, be careful. Your employer will have those details. E-tickets in your email inbox can also provide exact dates.
NRI info requirement
Non-resident Indians (NRIs) are required to file their returns in India. This is when they have a source of income based in India. The additional information needed in new ITR forms means you have to mention the country of residence, taxpayers’ identification number, the number of days of stay in India in case of Indian citizen or a person of Indian origin (PIO).
Foreign assets info
You have to be prepared to share new information about foreign assets held as an Indian. This will be details of foreign depository accounts. Details of foreign custodial accounts, foreign equity and debt held and foreign cash value insurance contract details also have to be reported separately in the tax return forms. So, the information required goes beyond just bank accounts.