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Top 6 changes in ITR for AY 2016-17

Government has notified the new forms with the onset of the new financial year i.e., 1st April, 2016. The Finance Ministry published a gazette order in this regard on March 30 and taxpayers can file their ITRs till the stipulated deadline of July 31.

Top 6 changes in ITR Filing for AY 2016-17

 

In this regard, following changes in ITR for AY 2016-17 need to be marked before filing of return:

  1. Earning above Rs. 50 lakhs per annum

Disclosure of value of all assets and liabilities. Assets include immovable assets and movable assets.

Immovable assets:  Disclose cost of land and building.

Movable assets: cost of following assets needs to be disclosed

  • Jewellery
  • bullion
  • vehicles
  • Yachts
  • boats
  • aircraft
  • cash in hand

Taxpayers also need to disclose all liabilities in relation to such assets.

  1. Claim of TCS credit 

Seller of bullion and Jewellery shall collect TCS at 1% of sale consideration from buyer if such sale consideration is received in cash and it exceeds:

  1.  i) Rs. 2 lakh, in case Bullion; and
  2. ii) Rs. 5 lakh, in case of Jewellery.

Changes applicable in Form 1, 2, 2A.

  1. Firms can file ITR-4S for presumptive income

A separate row is provided for in ITR 4S to claim deduction of interest and salary paid by the firms to the partners.  Three additions -specifying nature of business, salary and interest paid to partners (applicable only to firms) and schedule AL.

  1. Contribution to NPS

A new row has been inserted to provide for an additional deduction of upto Rs. 50,000 for investment in National Pension Scheme.

Changes applicable in Form 1, 2, 2A, 3, 4, 4S.

  1. Details of pass through income of business trust or investment fund 

New Schedule PTI requires following reporting of pass through income of business trust/investment fund.

■ Name of business trust/investment fund

■ PAN

■ Head of income

■ Amount of income

■ TDS on such amount, if any.

Changes applicable in Forms 2, 2A, 3, 4, 5, 6, 7.

  1. No need to disclose Share of income from firm/AOP/BOI

Share of income/ profit from partnership firm, AOP and BOI which is exempt in the hands of recipient need not be disclosed. Earlier it was required to be disclosed under Schedule EI.

Changes applicable in Form 3, 4, 5, 6.

This article was originally published by Alok Patnia in Taxmantra.com.

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