Some recent amendments have been introduced by the Income Tax Department for filing Income tax Return by the assessees for the Assessment Year 2013-14. These rules have substituted old Income Tax Return Forms with new Income Tax Return Forms .
1. SAHAJ ITR1
Use by individual having Salary Income, house property income and income from other sources provided if he has got any loss under the head Income from Other Sources, then such person will not be able to file Income-tax Return in Form No. SAHAJ (ITR1). Secondly, Form SAHAJ (ITR1) shall not be applicable to a person who is resident, other than not ordinarily resident in India specially if such person has assets (including financial interest in any entity) located outside India or such person has signing authority in any account located outside India. Thirdly if exempted income exceeds Rs 5000 and lastly if claiming any double taxation relief.
For individuals and HUFs not having income from business or profession.
For individuals/ HUFs being partners in firms and not carrying out business or profession under any proprietorship.
4. SUGAM (ITR4S)
since last year Form No. SUGAM (ITR 4S) was provided for filing Income-tax Return by the persons who are taking advantage of computing their income in terms of section 44AD or section 44AE of the Income-tax Act for computation of their business income based on a percentage of the profit. It may be noted that this return form be used only when the turnover of the business is less than Rs. 1 crore. The new amendment to Rule 12 of Income-tax Rules now provides that the provisions relating to filing of Income-tax Return in Form SUGAM (ITR 4S) will not apply to a person who is a resident, other than not ordinary resident in India and has any assets (including financial interest in any entity) located outside India or has a signing authority in any account located outside India. Likewise, the SUGAM (ITR 4 S) cannot be used by individual claiming Double Taxation Relief. Finally, the SUGAM (ITR 4 S) cannot be filed by persons having income not chargeable to tax exceeding Rs. 5,000 and such persons should file return in Form No. 4.
For individuals and HUFs having income from proprietary business or profession.
For firms, BOIs and AOPs
In the Income-tax (3rd Amendment) Rules, 2013 some amendments have been brought in which are very important to know for filing a return.
It is not required by people having PAN card whose income is not taxable to file a return.
Even if someone has not disclosed all of his bank accounts the Income Tax Department can easily find out all his bank accounts in a scrutiny.
If one has a taxable income it is not safe to neglect filing of return. An Income Tax Return is useful in case of many transactions where it is necessary to produce the return.
At present all the manual filing of returns are also processed online. Hence it is useful to file return online.
A new “Schedule AL” has been introduced in the Income Tax rules this year. It contains the details of the assets as well as liabilities of any person or HUF. It has to be filled up in cases where the income of the person or HUF is more than Rs. 25 lakhs.
Electronic filing of return in some cases:
Individuals having required filing tax audit should submit the audit report with the Income Tax Return electronically.
Tax payers claiming relief of tax under the provisions of section 90 or 90A or 91 of the Income Tax Act and are filing their Return for the Assessment Year 2013-14 and the following years are going to be required to file their Income Tax Returns electronically.
But in case of the charitable trusts and educational institutions that are to file their Returns in Form No 7 need not file the Return electronically whatever be their income.
(Author is a Student of ICAI and can be reached at Shubhigoel1989@gmail.com)