The Central Board of Direct Taxes (CBDT) has notified the revised income tax (I-T) return forms for non-salaried individuals for the assessment year 2015-16 (financial year 2014-15, which ended as of March 31, 2015).
Forms ITR-3 to ITR 7 have been prescribed for tax payers such as sole proprietors (businessmen or professionals), limited liability partnerships, partnership firms, Hindu Undivided Families (HUFs) and companies (see table).
Companies are required to file their tax return using Form ITR-6, which as compared to earlier years calls for a plethora of additional disclosures. Some of these disclosures such as corporate social responsibility (CSR) expenditure relate to new regulations applicable toIndia Inc for the first time during the FY 2014-15 others have been introduced to enable tax authorities to keep better track of overseas assets and income. The latter, could help tax authorities detect money laundering.
India Inc has for the year ended March 31, 2015, incurred for the first time, expenditure towards corporate social responsibility. Such expenditure is not treated as a business expenditure under section 37(1) of the I-T Act and is not allowed as a deduction for tax purposes (In other words, it does not reduce the taxable income of the company). Thus if CSR expenditure has been debited to the profit and loss account of the company, it needs to be disclosed separately in Form ITR-6. Investment allowance was another new provision introduced in tax laws.
If a company invests Rs. 25 crore or more in new plant and machinery during a year, a deduction of 15% of its value was allowed as an investment allowance. Details have to be provided of such investment allowance claimed. ITR-6 also calls for details of all domestic bank accounts, such as name of the bank, IFSC code, account number, and nature of the bank account. No details are required in respect of dormant bank accounts which have not been operational for the past three years.
To keep better track of foreign income earned by India Inc and identify any possible instances of round tripping or money laundering, a detailed schedule FA has been introduced in ITR-6.
India Inc has to fill in details of foreign assets including foreign bank accounts, interests in overseas trusts and immovable property held 'at any time during the financial year'. This also includes disclosure of foreign assets which are held as a beneficiary and not just direct ownership. The income from such foreign assets also requires to be disclosed.
Forms ITR-3 to ITR 7 have been prescribed for tax payers such as sole proprietors (businessmen or professionals), limited liability partnerships, partnership firms, Hindu Undivided Families (HUFs) and companies (see table).
Companies are required to file their tax return using Form ITR-6, which as compared to earlier years calls for a plethora of additional disclosures. Some of these disclosures such as corporate social responsibility (CSR) expenditure relate to new regulations applicable toIndia Inc for the first time during the FY 2014-15 others have been introduced to enable tax authorities to keep better track of overseas assets and income. The latter, could help tax authorities detect money laundering.
India Inc has for the year ended March 31, 2015, incurred for the first time, expenditure towards corporate social responsibility. Such expenditure is not treated as a business expenditure under section 37(1) of the I-T Act and is not allowed as a deduction for tax purposes (In other words, it does not reduce the taxable income of the company). Thus if CSR expenditure has been debited to the profit and loss account of the company, it needs to be disclosed separately in Form ITR-6. Investment allowance was another new provision introduced in tax laws.
If a company invests Rs. 25 crore or more in new plant and machinery during a year, a deduction of 15% of its value was allowed as an investment allowance. Details have to be provided of such investment allowance claimed. ITR-6 also calls for details of all domestic bank accounts, such as name of the bank, IFSC code, account number, and nature of the bank account. No details are required in respect of dormant bank accounts which have not been operational for the past three years.
To keep better track of foreign income earned by India Inc and identify any possible instances of round tripping or money laundering, a detailed schedule FA has been introduced in ITR-6.
India Inc has to fill in details of foreign assets including foreign bank accounts, interests in overseas trusts and immovable property held 'at any time during the financial year'. This also includes disclosure of foreign assets which are held as a beneficiary and not just direct ownership. The income from such foreign assets also requires to be disclosed.
Source:-The Economic Times
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