9 Changes in new return forms [ITR 1, 2, 2A, 4S] for Assessment year 2015-16

9 Changes in new return forms [ITR 1, 2, 2A, 4S] for Assessment year 2015-16

1. Introduction of ITR 2A [ITR 2A]

A new Form ITR 2A has been introduced which can be filed by an individual or HUF who does not have capital gains, income from business/profession or foreign asset/ foreign income or have not claimed relief under section 90/90A/91.

ITR 2A includes almost all fields as were contained in ITR 2, except information relating to capital gains, foreign asset/ foreign income and relief under section 90/90A/91.

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2. Details of all bank accounts held by assessee [ITRs 1, 2, 2A, 4S]

The new ITR forms notified on June 22, 2015 provide immunity to the taxpayer from furnishing details about the bank accounts which have become dormant. The ‘ dormant ‘ account shall be those current and saving bank accounts which have not been operational for more than 3 years.
Following details shall be reported in respect of each bank account held by assessee in India:

1. a) IFSC Code of the Bank
2. b) Name of the Bank
3. c) Account Number
4. d) Nature of the bank account, i.e., current account or saving account

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3. Details of foreign travelling not required to be reported, except Passport No. [ITRs 2, 2A] 
The assessee should furnish his Passport number, if available.

4. Reporting of Aadhaar Number [ITRs 1, 2, 2A, 4S] 
The ITR forms require assessee to provide his Aadhaar Number (if assessee has obtained the same).

5. Reporting of amount that has remained unutilized in capital gains account [ITR 2] 
The amount so deposited in the capital gains account scheme u/s 54, 54B ,54F etc. should be utilized for investment in specified asset within specified time-limit, otherwise the unutilized amount shall be chargeable to tax in the previous year in which the time-limit expires. The unutilized amount would be taxable as short-term capital gain/long-term capital gain, depending upon the nature of original capital gain.

In ITR forms, requisite details are required to be provided in respect of amount so deposited in capital gains account scheme.
The details which are required to be provided if amount is deposited in capital gains account scheme are as follows:

1. a) Previous year in which asset is transferred
2. b) Section under which exemption is claimed
3. c) Year in which new asset is acquired
4. d) Amount utilized out of capital gains account scheme to acquire new asset
5. e) Amount that has remained unutilized in capital gains account scheme or amount which is not used for making investment in specified new asset

6. Details of income taxable under DTAA [ITR 2, 2A] 
If capital gain or residuary income of assessee is taxable as per provisions of the DTAA entered into between India and a foreign country, of which the assessee is a resident, following details shall be furnished in the return:

1. a) Name of the Country
2. b) Relevant Article of the DTAA
3. c) Rate of tax under DTAA (applicable in case of residuary income)
4. d) Confirmation if TRC has been obtained
5. e) Corresponding section of the Act which prescribe the rate of tax (applicable in case of residuary income)
6. f) Amount of income

Further, the special tax rate on capital gain or residuary income and tax on such income as per DTAA shall be disclosed separately in Schedule SI.

7. Details about the foreign assets and foreign income [ITR 2] 
The ITR forms seek more details about the foreign assets and income from any source outside India. Schedule FA is substituted which requires assessee to provide detailed information about such foreign assets and income. The additional disclosures in the new ITR form shall be as under:

1) Foreign Bank Account:
1. a) Status of account holder (i.e., Owner/ Beneficial Owner/Beneficiary)
2. b) Date of opening of such bank account;
3. c) Interest accrued in the account; and
4. d) Details about the interest offered to tax in the return.

2) Financial Interest in a foreign entity:
1. a) Nature of financial interest (direct, beneficial ownership or beneficiary) in such entity;
2. b) Date since such interest is held;
3. c) Income accrued from such interest;
4. d) Nature of income; and
5. e) Details about the income offered to tax in this return.

3) Foreign Immovable Property or any other capital asset
1. a) Whether ownership in such asset is direct or beneficial or as beneficiary;
2. b) Date of acquisition of such asset;
3. c) Income derived from such asset;
4. d) Nature of income; and
5. e) Details about the income offered to tax in this return

4) Signing authority in any foreign account
1. a) Whether income accrued in such account is taxable in assessee’s hands; and
2. b) If yes then furnish details about the income offered to tax in this return

5) Trustee or Beneficiary or Settlor in a foreign trust
1. a) Date since the position of trustee or beneficiary or settlor held in foreign trust;
2. b) Whether income derived from the trust is taxable in assessee’s hands; and
3. c) If yes, details about the income offered to tax in this return

6) Any other income derived from any source outside India
1. a) Country Name and Code;
2. b) Name and address of the person from whom income is derived;
3. c) Amount of income derived;
4. d) Nature of income;
5. e) Whether income is taxable in assessee’s hands; and
6. f) If yes, details about the income offered to tax in this return.

8. Agricultural income [ITR 2, 2A] 
The Schedule EI in ITR forms requires assessee to provide following figures separately:
1. a) Gross agricultural receipts
2. b) Expenditure incurred on agriculture
3. c) Unabsorbed agricultural loss of previous eight assessment years
4. d) Net agricultural income for the year.

9. Concessional tax rate in case of sale of listed securities (other than unit)  [ITR 2] 
As per the existing proviso to Section 112, if tax payable on long-term capital gains arising on transfer of a capital asset, being listed securities or units or zero coupon bonds, exceeds 10% per cent of the amount of capital gains before allowing for indexation adjustment, then such excess shall be ignored.

The Finance (No. 2) Act, 2014 amended the said proviso to provide that the concessional rate of tax of ten per cent shall be available only for long-term capital gain arising from transfer of listed securities (other than unit) and zero coupon bonds.

Therefore, consequential amendment is made to ITR forms in accordance with the amendment.

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