The Income Tax Department wants to know tax payers a little better about their finances and businesses as the new Income Tax Return (ITR) form introduced on Thursday asks for details about the salary structure and income from property.
The Central Board of Direct Taxes (CBDT) has notified the introduction of new ITR forms for the Financial Year 2017-18 which are structured in a way that they incorporate the amendments made in the Finance Act 2017. For the current assessment year (AY2018-17), new simplified one-page ITR Form-1 (aka Sahaj) has been notified with several new columns. By collection more information from taxpayers, including details about allowances of salaried not exempt from tax to matching direct and indirect tax numbers of businesspersons, the purpose of the IT Department is to keep an eye on taxation evasion.
So as per the newly notified ITR forms, the assesse will require to mention their salary details in different fields and in a broken-up format – including formats that are not exempted, value of perquisites, profit in lieu of salary and other deductions claimed. Besides this, the ITR form also seeks details about income from property, like – gross rent received/ receivable/ liable value, tax paid to local authorities, annual value, interest payable on borrowed capital, and income chargeable under the head house property. The new form also makes it mandatory for small businesses to report their goods and services tax identification number (GSTIN) and turnover reported under GST.
Some categories of taxpayers are now required to mention registration number of the firm of chartered accountant which has done audit for the tax return. Perhaps, with the mention of GSTIN number, the government wants to link the direct and indirect taxes paid by businesses. In contrast to the situation for regular taxpayers, the new ITR form will prove to be a relief to the non-resident Indians (NRIs) as they can now provide details of their foreign bank accounts to claim credit or refunds.