The financial year 2016-17 has just ended and Income Tax Department has already released the income tax return forms, so as to ensure timely compliances by the citizens. While the income tax return forms have been made complicated and complex with each passing year, the data collection through Income Tax Returns (ITRs) has also been increasing though additional disclosures in the return forms. This is in addition to the expected disclosures and details about income so earned and taxed paid thereon in the forms so notified.
Here are four things you must know about the additional disclosures you might need to make in this year’s Income Tax Return Forms:
1. Mandatory Aadhaar Number
The Govt. is planning to use Aadhaar as a centralized database for a person’s financial history and in a bid to link PAN with Aadhaar, this has been made the compulsory field in this year’s return forms. As such, in case you don’t have an Aadhaar yet and you otherwise are supposed to file a return, act sooner and apply for it.
2. Details of Bank Accounts held
The return forms also ask for the number and details of the bank accounts held by the assessee during the year. This is done to ensure that the assessee has considered the transactions in the bank accounts so disclosed while filing his/ her return. Further, the data can be matched with any additional information the Tax Department might be already possessing.
3. Cash Deposited during the Demonetisation Window
While the legal tender of specified bank notes of the high denomination of Rs. 500/ 1000 was taken away on 8 November 2016 and a special window was made available to exchange/ deposit such notes through banking channels. Now, with an intent to collate and match the data already received from banks, the IT return forms have also asked for details of cash deposited in the bank accounts listed in the ITR during 9 November 2016 to 30 December 2016. However, this disclosure is only to be made if the cash so deposited is more than Rs. 2 lakh. Don’t miss this new requirement, which can indeed be too dangerous to ignore.
4. Net Worth Statement
IT forms also call for the details of specified assets and the related liabilities if the taxable income in the return form exceeds Rs. 50 lakhs. Figures here have to be provided as per the cost and not the present market value. However, given that the floor limit for such disclosure is much higher at Rs. 50 lakh, this disclosure affects smaller category of taxpayers.
How do you rate the IT Return filing process? Share your comments on these disclosures too and in case you need any help in your financial compliances and financial planning, you may use the Contact form on this website.
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