New I-T return form provides for disclosure of loans, card payments above Rs 2 lakh

The simplified new income tax return form contains a new column to disclose all cash payments of over Rs2 lakh, including payment of loans and credit card bills, during the 50-day period post demonetisation.

The Income Tax Department last week notified new income tax return (ITR) forms for filing of returns for the assessment year 2017-18 (financial year 2016-17).

With the new ITRs, the CBDT had also rationalised and cut down the number of forms to seven from earlier nine.

Besides providing for declaring income, exemption claimed and tax paid, the forms have a new column providing for declaration for any deposit of over Rs2 lakh in bank accounts made during 9 November and 30 December 2016 after the old Rs500 and Rs1,000 notes were demonetised.

While all credit cards are linked to permanent account number (PAN) of the holder, almost all loans by scheduled banks are also provided on furnishing of PAN.

This is for matching the cash deposits made post demonetisation with the annual income, say officials.

The tax department will collate the data already in hand of cash payments made in excess of Rs2 lakh with the returns filed to find if unaccounted cash or black money has been used to settle bills after credit cards were used to make heavy purchases.

Post-demonetisation, the government had provided a 50-day window beginning 9 November 2016 to deposit the junked notes in bank accounts. For those with unaccounted cash, it gave them one last opportunity to come clean by depositing 50 per cent of it as tax and parking another 25 per cent in a zero-interest bearing deposit for four years.

While all taxpayers will have to now mandatorily link Aadhaar with their PAN cards, ITR1 (Sahaj) form has been shortened from 7 page to 1 page to enable filing of returns by people with income up to Rs50 lakh by July 31.

ITR2 is to be filed by individuals and HUFs who do not have income from business or profession and ITR3 is filed by individuals and HUFs having income from a proprietary business or profession.

Also ITR 2 and ITR 3 also have a Schedule AL which require the assessees to declare their assets and liabilities at the end of the fiscal.
 
ITR4 (Sugam) is filed by those individuals who have opted for income calculation under presumptive income from business and profession.