Amendments in Income Tax Forms

Amendments in Income Tax FormsBy Manoj Kumar FCA9810764620Income Tax Return FormsITR FormsDetailsITR-1, SahajIndividuals having i. Salary Income ii. Income from house property iii. Income from other sources (except income from lottery or from horse races or does not have any loss under any head) subject to the proviso

ITR-2For Individuals and HUFs not having income from business or profession and can't file return in ITR 1

ITR-3For individuals/ HUFs being partners in firms and not carrying out business or profession under any proprietorship and having income only from partnership firmITR-4For individuals and HUF having income from a proprietary business or profession ITR-4 Sugam For Individual or HUF having income under 44AD and section 44 AE of income tax act subject to the provisoITR-5For Firms. AOP or BOIITR-6 For companies other than companies claiming exemption u/s 11ITR-7For persons including companies required to furnish return u/s section 139(4A) or 139 (4B) or 139 (4C) or 139 (4D).

Amendments in I.T. Act for A.Y.2013-14 and Changes in ITR Forms.

Difference Existing New PositionITR 1 (SAHAJ )

ApplicabilityAnindividualif his total income includes:(a) Salary and familypension(b) Income from one house property(excluding losses);(c) Income from other sources but does not include: Winnings from lottery; and Winnings from horse racesAnindividualif his total income includes:(a) Salary and familypension;(b) Income from one house property (excluding losses);(c) Income from other sources but does not include: Winnings from lottery; Winnings from horse races; and Loss under any head.Non applicabilityReturn in ITR 1 cannot be filed by a resident person (other thannot ordinarily residentin India), if he has:(a) Any asset (including financial interest) located outside India;(b) Signing authority in any account located outside India.Return in ITR 1 cannot be filed by a resident person (other than not ordinarily resident in India), if he has:Any asset (including financial interest) located outside India;(b) Signing authority in any account located outside India;(c)Claimed any relief of tax under Section 90, 90A or 91;(d)Income exceeding Rs. 5,000 which is not chargeable to tax. In other words, if assessee claims exemption in respect of any income under Section 10, 10A, 10AA, etc. Difference Existing Position New Position Part A GEN Return filled Before due date -139 (1) After due date -139(4) Revised return 139(5) ORRevised return u/s 139 (5) or in response of notice 142(1) 148 153A/ 153 C Return filled Before due date -139 (1) After due date -139(4) Revised return 139(5) ORRevised return u/s 139 (5) or in response of notice 142(1) 148 153 A /153 C 139 (9)PART DType of account only account no. Current account saving s accountBank Detail only in refund casesAll cases ( irrespective of refund or not) IFSC Code mandatorily Difference Existing Position New PositionITR -2,34,5,6,7 Schedule CG

No such requirement. W.r.t. non-residents earning any short term capital gain on transfer of shares/units, the capital gain has to be shown separately for Securities Transaction Tax (STT) paid shares/units and otherwise.

Ref. to investment in equity shares of an eligible company to obtain relief from long term capital gains tax (Section 54GB of the Act) has been included.

PAN of eligible company should be quoted.(NA FOR ITR 5,67)Inserted SCH FSI

( Details of income accruing or arising out side India)

No such requirement. Details required :-

Country Code Taxpayer Identification No Income earned identified separately for all five sources of income. Bifurcation of total income value where tax treaty is applicable or not. Difference Existing Position New PositionITR -2,3,4,5,6,7 Schedule TR( Detail of taxes paid outside India ) Country name Country code Taxpayer identification no. Income Tax paid Tax relief claimed Country code Taxpayer identification no. Relevant article of DTAA Tax relief claimed u/s 90 / 90A u/s 91 Total tax bifurcated where DTAA is applicable or where is not applicable. Schedule FA( Detail of Foreign assets)

Mention Account no. in which tax payer has signing authority.

Not applicable. - Detail of foreign assets-Detail of financial interest in any entity-Details of immovable property-Details of any other assets in the nature of investment-Details of accounts in which the asssessee has signing authority and which has not been included in above-details of trust created under law of a country outside india, in which the assessee is a trustee Difference Existing Position New PositionITR -3,4Inserted Schedule AL

(Applicable when total income exceeds Rs.25lakh ) No such requirement. Details required :-

Details of immovable assets land, buildingDetail of moveable Assetslike bank (including all deposits) , share & securities , insurance policies, loans and advances given cash in hand, jewelry, bullion , archaeological collections, drawings, painting, sculpture or any work of art, vehicles, yachts, boats and aircrafts.

Details of loans against these assets.

Notes value has to be reported at cost. Difference Existing Position New PositionITR 4S ( SUGAM)

Non applicability

Return in ITR 4S cannot be filed by anIndividualor aHUF deriving income as referred to in Sections 44AD or 44AE, if it has:

Any asset (including financial interest) located outside India Signing authority in any account located outside India.Return in ITR 4S cannot be filed by anIndividual or a HUF deriving income as referred to in Sections 44AD or 44AE, if it has:

Any asset (including financial interest) located outside India Signing authority in any account located outside India. Claimed any tax relief under Section 90, 90A or sec .91. Income exceeding Rs. 5,00 0 which is not chargeable to tax. In other words, if assessee claims exemption in respect of any income under Section 10, 10A, 10AA, etc. ITR 5 , 6 ,7 Part A GENReturn filled Before due date -139 (1) After due date -139(4) Revised return 139(5) OR In response of notice 139(9) defective 142 (1) 148 153A / 153CReturn filled Before due date -139 (1) After due date -139(4) Revised return 139(5) OR In response of notice 139(9) defective 142 (1) 148 153A / 153C 92 CDChanges in ITR 6Designed in accordance with schedule-VIShare Application Money pending allotment-Pending for less than a year- Pending for more than a year Non Current Liabilities-Deposit from related parties- Loan and advance from related parties Trade payables - Outstanding for more than a year- othersLong term loans and advances-for the purpose of business or profession -not for the purpose of business or profession -given to shareholder, being the beneficial owner of share, or to any concern or on behalf/ benefit of such shareholder as per section 2(22)(e) of I.T. ActExpenses to be disclosed into: To non resident other than a company or aForeign companyTo othersCommission Royalty Professional / Consultancy fees / Fee for technical services InterestBad debts written off- Specify PAN of the person, if it is available,for whom Bad Debt for amount of Rs.1 lakh 0r more is claimed and amount-Others (more than Rs. 1 lakh) where PAN is not available -Others (amounts less than Rs. 1 lakh)

-Applicability to ITR 5 also depending upon its constitutionAMT AND AMTC-115 JC and 115 JDThe finance Act 2012 extended the scope of person covered under Alternate Minimum Tax u/s 115JC and hence, suitable amendments has been brought in the ITR For 4,5, and 7 providing for AMC and AMTC by introducing schedule AMT and AMTC.

Schedule AMTC

-Mandatorily e filling of Income Tax ReturnCBDT has vide notification No. 34/2013 dated 01.05.2013 has made it mandatory for the following category of the Assesses to file their Income Tax Return Online from A.Y. 2013-14 :-(a) It is mandatory for every person (not being a co. or a person filing return in ITR 7)to e-file the return of income if its total income exceeds Rs. 5,00,000.(b) an individual or a Hindu undivided family, being a resident, having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India and required to furnish the return in Form ITR-2 or ITR-3 or ITR-4, as the case may be.

(c) Every person claiming tax relief under Section 90, 90A or 91 shall file return in electronic mode.(d) Those who are required to get their Account under Section 44AB-DSC(e) A firm required to furnish the return in Form ITR-5 or an individual or Hindu Undivided Family (HUF) required to furnish the return in Form ITR-4 and to whom provisions of section 44AB applicable-DSC(f) A company required to furnish the return in Form ITR-6- DSC

In case account / report is required to be audited u/s 44AB, 92E, 115JB, 10 (23C) (iv), (v), (vi) or (via), 10A, 12(1)(b), 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA.

ITR 7 is optional to be filed on line. SOME OTHER IMPORTANT INCLUSIONS IN NEW

Name of the Country . Provision made for two email ids. One for assessee & other of professional Intermediary Under the Schedule 'Deductions': Sec. 80CCD bifurcated into two Parts namely Sec80CCD(1) & 80CCD(2). Sec 80CCG inserted. (Rajiv Gandhi Equity Saving Scheme.) Sec 80TTA inserted. (Deduction in respect of Interest on Deposit in savings Account)

IFSC code to be mentioned under the head 'Bank account detail'. Now MICR code is not required. In "SAHAJ & SUGAM" forms, now the assessee has to specify, whether Income from House Property is from Self Occupied House or from Let Out House. This option was not there in earlier forms. Date of Furnishing of Audit report' is now inserted under the head 'Audit Information' in ITR - 4. Another new addition in ITR-4 is " Whether Tax Payer is liable to furnish a report u/s 92E

Now 'Income from wining from Lotteries, crossword puzzles, races, games, gambling, betting etc'. is to be shown separately under the sub head 'Income from other Sources' in Schedule TI (Total Income).

Now 'Income Chargeable to Tax at Special Rates' is also to be shown separately under the Schedule TI (Total Income).

TAX Payable on Deemed Total Income u/s 115JC & Tax Credit available u/s115JD' is now to be shown separately under the Schedule 'Computation of Tax Liability' & its detailed calculation is to be given in 'Schedule AMT & AMTC' respectively.

'Rebate on Agricultural Income' is now to be shown separately in the Schedule 'Computation of Tax Liability by reducing it from the Taxes computed at Normal Special Rates, to arrive at Tax Payable on Total Income.

Additions & Deductions in accordance with sec 28 to 44DA are now to be shown separately while computing Income from Specified Business in Schedule BP of ITR-4.

In Schedule 80-IB , Deduction in relation to operating & maintaining a hospital in any area other than excluded area (clause 11C), has been inserted.

In ITR-3, in Schedule IF (Information regarding partnership firm)- Assessee is now required to state, whether the firm is liable for audit or not?.

Manner of furnishing online returnFurnishing the Return in paper Form.

Furnishing the return electronically under DSC.

Transmitting the data in the Return electronically and thereafter submitting the verification of the Return in Form ITR V.

Furnishing the Bar Coded Return in a Paper Form.

ON LINE FILLING OF AUDIT REPORTProcedure for on filling Audit ReportThe chartered accountants qualified to conduct the audit will go to Income Tax e- filling web site and click on Register yourself and then provide the following information:Name as per ICAI records Membership number Date since member Password to be created DSC E-mail id Mobile No.

After registration you will receive an activation link on email id provided duringregistration now you will have to click onthe linkto complete the registration process. Once complete the registration process, you can now login by using user id as ARCA (authorized representative CA) prefixing with your membership number. E.g.. ARCA654321. with date of birth and password

Assessees AccountsSTEP 2This step is to be done by the assessee .Assessee, who needs to get his account audited u/s 44AB of the Act, shall add the CA who is going to or has signed his taxaudit report by following steps given below: Login with the user id and password of the assesseeGo tomy accountAdd CA Enter the membership no. of CA from whom the assessee wants or got his account audited and the system will automatically reflects the name of the CA only if he is already registered astax professionalas mentioned in Step 1

29Select the form name 3CB/CD or 3CA/CD E-mail will be sent to selected CA about the adding his as CA of a particular assessee. E-mail will be sent to assessee also regarding theaddition/change in CA.STEP 3 Now this step is similar to generatingXML file for filingROI, Downloadexcel utility form of the taxaudit reportfromthe linkgiven below, fill it completely and generate the XML file or it can be done through softwarehttps://incometaxindiaefiling.gov.in/eFiling/UserLogin/LoginHome.html?nextPage=efile Go to download Forms (other than ITR)Form 3CD has 4 pages and each page has save button so that the information can be filled and saved page wise.

After filling the form validate it and if there is any mistake, the same will be highlighted - generate XML file

STEP 4BalanceSheetandProfit and Loss Accountis required to be attached or uploaded (inPDF format) with the XML file of taxaudit report, prepare the final balancesheetandprofit and loss accountbefore submitting the taxaudit report.

STEP 5 After preparing all the documents now upload it on e-filingportalof income tax by following steps:Go tothe linkhttps://incometaxindiaefiling.gov.in/e-Filing/Logout.html?ID=872639272 Login with user id and password (e.g.ARCA654321) Go to the menu E-file Select the option upload forms Fill out the required details and submit it.

STEP 6

This step is to be followed either by the assessee or by CA by using user id and password of assessee.

Assessee whose taxaudit reporthas been uploaded and submitted by the CA, (in step 5) is requiring approving the taxaudit report. Steps to be followed:-Login with the user id and password of assessee Go to work listApprove the taxaudit report

Assessee can review the uploadedtax auditreport; balancesheetandprofit and loss accountby CA and has the power to reject them. In that case the complete procedure of filing after registration has to be done again.

NOTE :-It is necessary for assessee (for CA if using assessees user ID and password) to approve the taxaudit reportuploaded by CA before thedue dateof filing the taxaudit reportelse it will be assumed that no taxaudit reporthas been furnished by the assessee.

HAVE A DELIGHTFUL E -FILING THANKS

MANOJ KUMAR MANOJ KUMAR MITTAL & CO.9810764620Manojmittal2005@yahoo.com