Changes in ITR Forms for AY 2015-16

The new Income Tax Return (ITR) Forms ITR–1, ITR-2, ITR-4S have been notified for AY 2015-16. We have highlighted the changes in these forms from last year.

Common Changes:

Following are the changes in ITR Rules:

1. You cannot fill ITR-1 (Sahaj) and ITR-4S (Sugam) if you have any income from sources outside India
2. EVC verification linked to aadhar number has been introduced as an alternative to sending physical ITR-V to CPC, Bangalore. So for people with aadhar card there would be no need to post their ITR-V to CPC.
3. Super senior citizens i.e. people with age more than 80 years can file their ITR in paper form subject to certain conditions.

ITR would become complicated for all freelancers, coders, content providers and bloggers as they do have income from sources outside India. Now they would not be able to fill ITR-1 or ITR-4S.

Download: Tax Planning Guide for FY 2015-16

We have highlighted changes in the respective form below:

ITR-1 (Sahaj):

1. Aadhar Card Details: A column has been added to furnish aadhar card details if you have one. This would be used for EVC verification system as described above.

2. Bank Account Details: You need to mandatorily furnish details of all your bank accounts held singly or jointly including any account closed in FY 2013-14. The details include account number, bank name, IFSC Code and balance as on March 31, 2015.

ITR-2:

1. Aadhar Card Details: A column has been added to furnish aadhar card details if you have one. This would be used for EVC verification system as described above.

2. Details of Foreign Travel: You would need to furnish details of foreign travel made (For resident and nonresident both) including Passport No, Issued at, name of country, number of times traveled and expenses.

3. Capital Gains Account: You need to provide all the details like amount utilized, year of utilization, amount lying unutilized, etc for capital gains account held by you for years proceeding to last to assessment years.

4. Bank Account Details: You need to mandatorily furnish details of all your bank accounts held singly or jointly including any account closed in FY 2013-14. The details include account number, bank name, IFSC Code and balance as on March 31, 2015.

5. Changes for Non-residents:

Following 2 changes have been made for NRIs:

1. In case LTCG & STCG is not taxed on account of DTAA benefit, NRIs would be required to furnish Country name, Article of DTAA, TRC obtained or not
2. If the income from other sources is taxed at special rate provided in DTAA, NRIs would be required to provide details of Name of Country, Relevant article of DTAA, Rate of Tax, Whether TRC obtained or not, Corresponding rate of tax under income tax act

6. Changes in Foreign assets disclosure:

1. Foreign Bank accounts details: You would need to disclose Account number, account opening date, Interest/income accrued from such account, If any along with details of head of income and schedule under which such income is shown, if offered to tax in India for all your foreign accounts.
2. In similar manner, details of income from financial interest in any entity outside India need to be disclosed.
3. Similar disclosure requirement is also required for Immovable property outside India, capital asset held outside India, trust held outside India

ITR-4S (Sugam):

1. Aadhar Card Details: A column has been added to furnish aadhar card details if you have one. This would be used for EVC verification system as described above.

2. Bank Account Details: You need to mandatorily furnish details of all your bank accounts held singly or jointly including any account closed in FY 2013-14. The details include account number, bank name, IFSC Code and balance as on March 31, 2015.

We would soon be publishing more details about income tax returns. You can ask any questions through comments.