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.
Following are the changes in ITR Rules:
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:
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.
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:
6. Changes in Foreign assets disclosure:
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.
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View Comments
Does anybody really knows which ITR from to fill for adsense earners?
Some say ITR4, others say ITR4S. This is frustrating.
It has to be ITR 4. Adsense income is income from commission, which is not eligible for FORM 4S. You can read more details in HBL.
" 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 "
My earning source is Adsense.
Which ITR form should we use now ?
All bloggers with income from Google Adsense will have to file returns using Form ITR 2 or ITR4. This is because the income is in US Dollars which would be considered as "income from source outside India" for income tax purpose.
Hey Amit,
You are confusing freelancers by this article. ITR 2 is not supposed to be filled by Bloggers/Freelancers. You should check the "Instruction to fill ITR-2" by IT department which clearly states that This Return Form should not be used by an individual or a Hindu Undivided Family whose total income for the
assessment year 2015-16 includes Income from Business or Profession.
Blogging/freelancing of any kind comes under profession and ITR 4S should be filled. In fact one of the largest online tax filling website ClearTax states the same thing. If income is less than 1 crore for professions (it includes many from photographers, artists ...to blogging) ITR 4S should be filled. If more than 1 crore then ITR 4 should be filled.
Thanks for your comment Satyendra. Let me clarify it and also would make change in the post accordingly.
There are two ways bloggers/freelancers can file their ITR. If the income from Adsense is not high then you can just put the revenues as "Income from other sources" and file return through ITR 2 (as this is income is in USD). In case you have substantial blogging income then you can treat it a business and file return using ITR4.
Bloggers who have income from Adsense cannot file ITR 4S as the income received is considered as commission which is exempted type of business for ITR 4S. But freelancers and artists can use form ITR4S if they get direct payment from clients and not through Adsense or similar service providers.