New ITR Forms and e-Filing requirements: Assessment year 2015-16
I. Introduction to New Rule 12
The CBDT has notified amendment to Rule 12 of the Income-tax Rules which shall be applicable for the assessment year 2015-16.
Till assessment year 2014-15, individuals or HUFs, who were otherwise not liable to file return of income electronically, could claim tax refund by filing return of income in physical form. However, the new provision makes it mandatory for every taxpayer to file return of income electronically so as to claim refund of tax from the department.
Under the extant Rules, every super senior citizen (being an individual of 80 years or more) is required to file return of income electronically, if his total income exceeds five lakh rupees. The new Rules provide an option to the super senior citizens, whose total income exceeds five lakh rupees or who is claiming income-tax refund, to file return of income in physical form, provided return is furnished in ITR- 1 or ITR- 2.
As per the new provision every individual or HUF whose total income exceeds five lakh rupees or who is required to file return in Form ITR-3 or ITR-4 shall file return of income electronically.
II. E-filing of the return
E-fling of return is mandatory for different classes of assessees. Rule 12 introduces a new class for filing of return of income using electronic verification code. Whether return of income should be filed electronically, with or without digital signature, using electronic verification code or in physical form is presented below in tabular format:
Particulars
|
E-filing with digital signature
|
E-filing without digital signature
|
E-transmission in return under electronic verification code
|
Filing of return in physical form
|
Individual or HUF
|
If income does not exceed Rs. 5,00,000
|
✓
|
✓
|
✓
|
✓
|
Income exceeding Rs. 5,00,000 (in case of an individual who is less than 80 years of age during the previous year)
|
✓
|
✓
|
✓
|
×
|
Income-tax refund is due (in case of an individual who is less than 80 years of age during the previous year)
|
✓
|
✓
|
✓
|
×
|
Super Senior Citizen ( filing return in ITR-1 or ITR-2)
|
✓
|
✓
|
✓
|
✓
|
If accounts are required to be audited
|
✓
|
×
|
×
|
×
|
If return is being filed in Form ITR- 3 or Form ITR-4
|
✓
|
✓
|
✓
|
×
|
Resident and ordinarily resident having assets (including financial interest in any entity ) located outside India
|
✓
|
✓
|
✓
|
×
|
Resident and ordinarily resident having signing authority in any account located outside India
|
✓
|
✓
|
✓
|
×
|
Resident and ordinarily resident having income from any source outside India
|
✓
|
✓
|
✓
|
×
|
If assessee is claiming relief in respect of tax paid outside India, under Section 90 or Section 90A or Section 91
|
✓
|
✓
|
✓
|
×
|
If assessee is filing report of audit (i.e., audit report under Sections 92E, 10A, 10AA, 44AB, etc.)
|
✓
|
✓
|
✓
|
×
|
Company
|
In all cases
|
✓
|
×
|
×
|
×
|
Political Party
|
In all cases
|
✓
|
×
|
×
|
×
|
Charitable or religious trust
|
Filing return of income under Section 139(4A)
|
✓
|
✓
|
✓
|
×
|
Specified research association, news agency, etc.
|
Filing return of income under Section 139(4C)
|
✓
|
✓
|
✓
|
×
|
University or college
|
Filing return of income under Section 139(4D)
|
✓
|
✓
|
✓
|
×
|
Firm/LLP/AOP/BOI/Artificial juridical person/Cooperative Society/Local Authority
|
Whose accounts are required to be audited
|
✓
|
×
|
×
|
×
|
Others
|
✓
|
✓
|
✓
|
×
|
III. Key changes in new ITR Forms
1. Details of all bank accounts held by assessee
[ITR 1, 2, 4S]
Under new ITR forms, an assessee is required to report details of all bank accounts held by him in India at any time (including opened/closed ones) during the previous year.
Following details shall be reported in respect of each bank account held by assessee in India:
a) IFSC Code of the Bank
b) Name of the Bank
c) Name of joint holders (if any)
d) Account Number
e) Account Balance as on 31st March of the previous year
2. Details about the foreign travelling
[ITR 2]
If assessee has travelled overseas, the details about such travelling should be furnished in the return form. The details to be furnished in the return shall be:
a) Passport details
b) Country visited during the year and number of visits
c) If assessee is a resident, amount incurred from own sources in relation to such travel
3. Reporting of Aadhaar Number
[ITRs 1, 2, 4S]
The new ITR forms require assessee to provide his Aadhaar Number (if assessee has obtained the same).
4. Date of Formation by HUF
[ITR 2, 4S]
Under new ITR forms, an HUF is required to report date of its formation.
5. Reporting of amount that has remained unutilized in capital gains account
[ITR 2]
If assessee is unable to roll over the investment in new capital asset within the specified time period so as to avail of the exemptions under section 54, 54B, etc., he can deposit the sum in capital gains account scheme.
In that case, exemption to be granted to assessee shall be aggregate of actual investment in new capital asset and amount deposited in capital gains account scheme before due date of filing of return of income.
The amount so deposited in the capital gains account scheme should be utilized for investment in specified asset within specified time-limit, otherwise the unutilized amount shall be chargeable to tax in the previous year in which the time-limit expires. The unutilized amount would be taxable as short-term capital gain/long-term capital gain, depending upon the nature of original capital gain.
Under New ITR forms, requisite details are required to be provided in respect of amount so deposited in capital gains account scheme.
The details which are required to be provided if amount is deposited in capital gains account scheme are as follows:
a) Previous year in which asset is transferred
b) Section under which exemption is claimed
c) Year in which new asset is acquired
d) Amount utilized out of capital gains account scheme to acquire new asset
e) Amount that has remained unutilized in capital gains account scheme or amount which is not used for making investment in specified new asset
6. Return filed pursuant to order of CBDT under Section 119
[ITR 1, 2, 4S]
For avoiding genuine hardship, by general or special order, the Board may authorize any tax authority other than CIT (Appeals) to admit an application or claim for any exemption, deduction, refund or any other relief after the expiry of the period specified under the Act.
If assessee is filing return of income pursuant to an order of CBDT under Section 119(2)(b), it shall tick the check-box [ under Section 119(2)(b)] introduced in the new ITR forms.
Generally CBDT extends date of filing of return under Section 119 in cases of natural calamities or when taxpayer faces genuine hardship in certain circumstances. Recently, the due date of filing of return for J&K taxpayers was extended by the CBDT due to devastation caused by flood in J&K.
7. Details about the income taxable under DTAA
[ITR 2]
If capital gain or residuary income of assessee is taxable as per provisions of the DTAA entered into between India and a foreign country, of which the assessee is a resident, following details shall be furnished in the new return forms:
a) Name of the Country
b) Relevant Article of the DTAA
c) Rate of tax under DTAA (applicable in case of residuary income)
d) Confirmation if TRC has been obtained
e) Corresponding section of the Act which prescribe the rate of tax (applicable in case of residuary income)
f) Amount of income
Further, the special tax rate on capital gain or residuary income and tax on such income as per DTAA shall be disclosed separately in Schedule SI.
8. Advance Pricing Agreement
[ITR 2]
As per provisions of Section 92CD – Effect of Advance Pricing Agreement ('APA'), where any person has entered into an APA and prior to the date of entering into the agreement, any return of income has been furnished under section 139 for any previous year to which such agreement applies, such person shall furnish, within a period of three months from the end of the month in which the said agreement was entered into, a modified return in accordance with the APA.
Accordingly, ITR forms pertaining to the Assessment Year 2014-15 were amended to allow assessee to tick the relevant check-box in Part A – Gen [ Modified Return - Section 92CD].
Now, under new ITR forms, assessee would also be required to enter Receipt No. and Date of filing of original return where modified return is furnished under Section 92CD.
Further, in this case the assessee shall be required to give an additional declaration that it satisfies the terms and conditions of the APA. The assessee shall declare the following in the return:
"I further declare that the critical assumptions specified in the agreement have been satisfied and all the terms and conditions of the agreement have been complied with. (Applicable, in a case where return is furnished under Section 92CD)"
9. Details about the foreign assets and foreign income
[ITR 2]
The new ITR forms seek more details about the foreign assets and income from any source outside India. Schedule FA is substituted which requires assessee to provide detailed information about such foreign assets and income. The additional disclosures in the new ITR form shall be as under:
1) Foreign Bank Account:
a) Status of account holder (i.e., Owner/Beneficial Owner/Beneficiary)
b) Date of opening of such bank account;
c) Interest accrued in the account; and
d) Details about the interest offered to tax in the return.
2) Financial Interest in a foreign entity:
a) Nature of financial interest (direct, beneficial ownership or beneficiary) in such entity;
b) Date since such interest is held;
c) Income accrued from such interest;
d) Nature of income; and
e) Details about the income offered to tax in this return.
3) Foreign Immovable Property or any other capital asset
a) Whether ownership in such asset is direct or beneficial or as beneficiary;
b) Date of acquisition of such asset;
c) Income derived from such asset;
d) Nature of income; and
e) Details about the income offered to tax in this return
4) Signing authority in any foreign account
a) Whether income accrued in such account is taxable in assessee's hands; and
b) If yes then furnish details about the income offered to tax in this return
5) Trustee or Beneficiary or Settlor in a foreign trust
a) Date since the position of trustee or beneficiary or settlor held in foreign trust;
b) Whether income derived from the trust is taxable in assessee's hands; and
c) If yes, details about the income offered to tax in this return
6) Any other income derived from any source outside India
a) Country Name and Code;
b) Name and address of the person from whom income is derived;
c) Amount of income derived;
d) Nature of income;
e) Whether income is taxable in assessee's hands; and
f) If yes, details about the income offered to tax in this return.
10. Agricultural income
[ITR 2]
Unlike the existing ITR forms which require assessee to provide figure of net agricultural income which is exempt from tax, the Schedule EI in new ITR forms requires assessee to provide following figures separately:
a) Gross agricultural receipts
b) Expenditure incurred on agriculture
c) Unabsorbed agricultural loss of previous eight assessment years
d) Net agricultural income for the year.
11. Distinction between heavy and light good carriages removed
[ITR- 4S]
The Finance (No. 2) Act, 2014 amended Section 44AE to remove the distinction between heavy goods carriages and light good carriages. From Assessment Year 2015-16, presumptive income in respect of goods carriages is computed at a uniform rate of Rs. 7,500 per month for any goods carriages.
Therefore, changes have been made in the ITR forms to remove the concept of type of goods carriages and to provide for uniform rate of Rs. 7,500 per month for computation of presumptive income of goods carriages.
12. Acknowledgment of details relating to exempt income in ITR-V
[ITRs- 1, 2, 4S]
Relevant columns have been provided under ITR-V to acknowledge exempt income, inter-alia, agricultural income and other exempt incomes.
13. Concessional tax rate in case of sale of listed securities (other than unit)
[ITR 2]
As per the existing proviso to Section 112, if tax payable on long-term capital gains arising on transfer of a capital asset, being listed securities or units or zero coupon bonds, exceeds 10% per cent of the amount of capital gains before allowing for indexation adjustment, then such excess shall be ignored.
The Finance (No. 2) Act, 2014 amended the said proviso to provide that the concessional rate of tax of ten per cent shall be available only for long-term capital gain arising from transfer of listed securities(other than unit) and zero coupon bonds.
Therefore, consequential amendment is made to ITR forms in accordance with the amendment.
14. Sale of units of business trust
[ITR- 2]
The Finance (No. 2) Act, 2014 introduced a new Chapter XII-FA in the I-T Act to provide for special provisions relating to business trust. The special taxation regime contains provisions for taxability of income in the hands of business trusts and the income distributed to its unit holders.
Consequential amendment is made to Section 10(38) to provide that long-term capital gain arising from transfer of unit of a business trust on which securities transaction tax (STT) is paid shall be exempt from tax.
Similarly, Section 111A has been amended to provide that short-term capital gain arising from transfer of unit of a business trust on which STT is paid shall be chargeable to tax at reduced rate of 15%.
Under new ITR forms necessary changes have been made in this regard.
15. Securities held by FIIs
[ITR 2]
Section 2(14) of the Act was amended by the Finance (No. 2) Act, 2014 to provide that securities held by FIIs shall be deemed as 'Capital Assets'. The amendment was made to end the controversy of categorization of income of FIIs as business income or capital gains.
