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Thursday, July 13, 2017

Income Tax Filing for FY 2016-17 From Aadhaar, Sahaj form to cash deposits of over Rs 2 lakh - All You Need To Know

By July 31, 2017, all individuals need to file income tax returns for FY 2016-17. As the deadline approaches, individuals rush to get the last pieces of the puzzle in place. Empirical data suggest that it is from now till July 31, 2017, that the biggest volume of return is going to be filed and hence, this is the appropriate time to pen down a few of the new requirements relevant for income-tax returns this year.
Sahaj form
Introduction of simplified single page ITR1 (SAHAJ) form to be used by individuals having income from salary, pension, one house property and income from other sources aggregating to total income up toRs 5,000,000. This move aims to help tax payers with ease of filing.
The number of ITR forms have been reduced from the existing nine to seven now. Earlier forms ITR-2, ITR-2A and ITR-3 have been merged and a combined revised ITR-2 has been notified. Consequently, erstwhile ITR-4 and ITR-4S have been renumbered as ITR-3 and ITR-4 (SUGAM) respectively.
Mandatory Aadhaar
Mentioning Aadhaar Number or the 28-digit enrolment ID in ITR 1, 2 3 and 4 has been made mandatory effective July 1, 2017. However, individuals who are not citizens of India, non-residents as per Income Tax Act, people living in the states of Assam, Meghalaya and Jammu & Kashmir and super senior citizens of age 80 years or more are exempted from this requirement. It is important to note that persons requiring to quote Aadhaar would likely not be able to file the income-tax return without Aadhaar.
Cash deposits
It is also required to report the cash deposits during the demonetisation period (i.e., November 9 to December 30, 2016) if the aggregate of deposit is equal to or more thanRs 2,00,000. For calculating the aggregated deposits, any cash deposited in any account including loan accounts needs to be taken into consideration.
Individuals who have sold immovable property have to mention PAN of the buyer of property.
A new section has been incorporated in ITR1 for mentioning exempt long-term capital gains and thereby individuals having exempt capital gains can file ITR1

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