- The Income-tax (3rd Amendment) Rules, 2013 which have been issued vide Notification No. 34/2013 dated 1.5.2013 provides for amendments in Rule 12 of Income-tax Rules, 1962, where certain Income-tax Return Forms have been substituted. The substituted Return Forms are SAHAJ ITR 1, ITR 2, ITR3, SUGAM ITR 4S, ITR 4 and ITR V. It is imperative to use the new Income tax Return forms while filing Income-tax Return for the A.Y. 2013-2014.
Following persons cannot file SAHAJ or ITR1:
- Those Persons who have any loss under the head ‘Income from Other Sources’. Earlier, the Income-tax Return in SAHAJ or ITR1 was permitted to be filled up by all individuals having salary income, income from house property and income from other sources (excluding income from lottery or from horse races). But now the new amendment states that if the individual has got any loss under the head ‘Income from Other Sources’, then such person cannot file Income-tax Return in SAHAJ or ITR1.
- An individual claiming any double taxation tax relief under sections 90 or 90 A or 91 of the Income-tax Act, 1961.
- All individuals having exempted income exceeding Rs. 5,000/-.
- A person who is Ordinary Resident and has assets (including financial interest in any entity) located outside India or such person has signing authority in any account located outside India.
- Up till last year, Form No. SUGAM (ITR 4S) was provided for filing Income-tax Return by those persons who were taking advantage of computing their income u/s 44AD or 44AE for computation of their business income based on a percentage of the profit. This return form was used only when the turnover of the business was less than Rs. 1 crore.
With the new amendments in place, following persons have to file ITR 4 instead of ITR 4S:
- a person who is a ordinary resident in India and has any assets (including financial interest in any entity) located outside India or has a signing authority in any account located outside India.
- individuals claiming Double Taxation Relief
- persons having exempted income exceeding Rs. 5,000
- Perhaps the most important amendment of all, all Individuals and HUFs having income more than Rs. 25 lacs, have to give information in the income tax return regarding personal movable and immovable assets except those which are already disclosed in the balance sheet. These details are required to be filed in ITR 3 and ITR 4 forms only and not in ITR 1 and ITR 2 or ITR 4S.
A new Schedule AL has been added in ITR 4 form which requires following details:
Asset and Liability at the end of the year (other than those included in Part A – BS) (Applicable in a case where total income exceeds Rs. 25 lakh)
DETAILS OF ASSET AND LIABILITY
A] Particulars of Asset Amount (Cost) (Rs.)
1. Immovable Asset
2. Movable Asset
a) Financial Asset
i Bank (including all deposits)
ii Shares and securities
iii Insurance policies
iv Loans and Advances given
v Cash in hand
b) Jewellery, bullion etc.
c) Archaeological collections, drawings, painting, sculpture or any work of art
d) Vehicles, yachts, boats and aircrafts
B] Liability in relation to Assets at A