Update yourself with key changes in ITR 3, 4, 5, 6 and 7 before you rush to file it

The CBDT, last month came out with simplified ITR Forms 1, 2, 2A and 4S for AY 2015-16. Now, the CBDT has notified the remaining ITR Forms i.e., ITR Forms 3, 4, 5, 6 and 7. Just one month left to file your return within due date 31^st August 2015 (Read: Unpardonable delay, CBDT notifies ITR 3, 4, 5, 6 and 7: Just one month left) 

Before you rush to file your return find below which ITR applies to you:

ITR 3– Individual/ HUF who is partner in a firm

• PGBP income includes only Interest/Salary/Bonus/Commission remuneration from partnership firm in which the Individual or HUF is a partner
• Salary
• More than one house property
• Capital Gains

  ITR -4– Individual/HUF

• Proprietary PGBP
• Salary
• More than one House Property
• Other Sources
• Capital Gains

  ITR – 5

• Firm/AOP/BOI/Local Authority/ Artificial Juridical Person
• Any Income

  ITR -6

• Company (Except Section 25 companies
• Any Income

  ITR -7

• Trust/Political Party/Section 10 Exempt Institutions/Section 35 colleges/institutions
• Any Income

  Update yourself with key changes in ITR 3, 4, 5, 6 and 7 before you rush to file it. So, go through the major changes incorporated in new ITR Forms so that you do not miss out any details to be furnished:   Details of House Property in ITR 3, 4, 5, 6 and 7 If assessee owns more than one house, then he shall select a check-box in the ITR Form to indicate which house shall be deemed to be let-out.   Foreign assets and foreign income in ITR 3, 4, 5, 6 and 7 The new ITR forms require detail disclosure about the foreign assets and income from any source outside India. The additional disclosures in the new ITR form shall be as under:

1. Foreign Bank Account:

• Status of account holder (i.e., Owner/Beneficial Owner/Beneficiary)
• Date of opening of such bank account;
• Interest accrued in the account; and
• Details about the interest offered to tax in the return.

 

2. Financial Interest in a foreign entity
3. Foreign Immovable Property or any other capital asset
4. Signing authority in any foreign account
5. Trustee or Beneficiary or Settler in a foreign trust
6. Any other income derived from any source outside India

  Disclosure of all bank accounts held by assessee in ITR 3, 4, 5, 6 and 7 An assessee is required to furnish details of all bank accounts held by him in India at any time during the previous year. However immunity has been provided to the taxpayer from furnishing details about the bank accounts which have become dormant.   Details of income taxable under DTAA in ITR 3, 4, 5 and 6 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 return:

• Name of the Country and Code
• Relevant Article of the DTAA
• Rate of tax under DTAA (applicable in case of residuary income)
• Confirmation if TRC has been obtained
• Corresponding section of the Act which prescribe the rate of tax (applicable in case of residuary income)
• 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.   Foreign portfolio investors/Foreign Institutional investors in ITR 5 and 6 Foreign Institutional Investor (FII) and Foreign Portfolio Investor (FPI) are required to furnish their SEBI registration number in the new return Form.   Details of interest rate, salary and remuneration payable including change in partner/ member in ITR 5 New ITR 5 requires disclosures of interest rate, salary and remuneration paid/payable to the partners or members in firm/AOP/BOI or settler/trustee/beneficiary in the trust, as the case may be. In addition, if any change in member/ partner shall also be disclosed.   Expenditure on CSR activities in ITR 6 Any expenditure incurred by an assessee on the activities relating to corporate social responsibility (CSR) referred to in section 135 of the Companies Act, 2013 shall not be allowed to be deducted as same could not be considered to be incurred for the purposes of the business or profession. Thus, new ITR 6 has been revised to provide for reporting of expenditure on CSR activities if the same is debited to profit and loss account.   Aadhaar Number and passport number in ITR 3 and 4 Aadhaar number and passport number, if available shall be furnished.   For any assistance in filing your return write to us at info@taxmantra.com or visit @ taxmantra.com.  ___________________________________________________________________