New ITR Form - For Individuals – To Declare Their Assets & Liabilities

(Individuals & HUF earning more than Rs.50 lacs in a year)

1. In a set of ITR Forms launched on 31/3/2016 evening, the CBDT has added a new schedule – Schedule AL to all ITR Forms (including ITR-1).  Under this new section, individuals have to declare all their assets and liabilities as on end of F.Y. 2015-16.

2. The assets have been classified under two categories:-

a) Movable: Cash in hand, Savings Bank A/c balance, vehicles (including Yachts, Boats and Aircrafts), jewellery, bullion and other valuable metals.

b)  Immovable:  Land or Building (including House Property)

3. Liabilities will include any outstanding loans.

Difficulties At The Moment

1. Further instructions are awaited by the tax payers to value their assets themselves especially jewellery and vehicles.

2. Professionals earning upto Rs.50 lacs in a year are covered under presumptive tax as per the amendments announced in the budget this year and have to pay taxes at a pre-determined rate of 50% of gross receipts.

3. Earlier, this process of filing tax return apart from profit declaration, no other details were required.  The new forms will change this, in case of multiple businesses.

Conclusion

Filing of tax return will be more difficult and requiring more details in view of the new compliance specified by CBDT and would entail;

i) Declaration of foreign assets, all the bank A/c maintained in F.Y. , ESOPS and other details.

ii) Declaration of net worth i.e. assets and liabilities by individuals and HUF.

iii) Other requirements remain as it is.

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