4 Additional Disclosures in Your Income Tax Returns Form This Year

It has been three months since Financial Year 2016-17 ended. Income Tax Department has already notified the income tax return (ITR) form so as to ensure timely compliances by the taxpayers. The due date of filing of income tax returns for salaried employees is July 31. And, I am sure most of you must be rushing to get all required documents. While the ITR forms are getting complicated with each passing year, the data collection through ITR forms has also been increasing. In the forms so notified, there are certain additional disclosures to be made along with the expected disclosures and details about income earned during the year and taxed paid thereon.

Here are four additional disclosures you might need to make in this year’s ITR Forms:

Mandatory Aadhaar Number

The Govt. is planning to use Aadhaar as a centralized database for a person’s financial history. Moving ahead with this plan, Govt. has made linking of PAN and Aadhaar compulsory from 1 July 2017. Hence, you will not be able to file your return unless you PAN is linked with your Aadhaar. Further, mentioning of Aadhaar Number has been made mandatory in this year’s return forms.

In case you don’t have an Aadhaar yet, and you have to file a return, act soon and apply for it. In cases where there are mismatches between your PAN information and Aadhaar details like spellings in the name, date of birth etc., kindly act an advance action to get the same corrected and subsequently linked without any hassle.

Details of Bank Accounts held

The return forms also ask for the number and details of all the bank accounts held by the assessee during the year. This is done to ensure that the taxpayer has duly considered the transactions in the bank accounts while filing their return. The data can be matched with information that Income Tax Department already possesses. In case you omit to disclose any bank account, you make yourself susceptible to a penalty for concealment of information. Hence, it is always better to disclosure complete and correct information. 

Cash Deposited during the Post-Demonetization Period

Demonetization of 500 and 1000 Rupee notes happened on 8 November 2016. Subsequently, a special window was made available to exchange/deposit such notes through banking channels. Now, with an intent to collate and match the data already received from banks, the ITR forms have asked for details of cash deposited in the bank accounts listed in the ITR during 9 November 2016 to 30 December 2016. However, this disclosure is only to be made if the cash so deposited is more than Rs. 2 lakh. One more important thing to note here is that this limit of Rs. 2 lakhs is applicable to all the bank accounts together and not for deposit in each bank account.

Statement of Assets and Liabilities

ITR forms also call for the details of specified assets and related liabilities if the taxable income in the return exceeds Rs. 50 lakhs. However, figures have to be provided as per the actual cost and not the present market value. Since the floor limit of taxable income for such disclosure is much higher at Rs. 50 lakh, this disclosure affects only a smaller category of taxpayers.

Share your comments on these disclosures and also your thoughts on these new disclosures in the IT Return filing process?

For more information, do read our other relevant articles on tax filing:

Top 5 websites for filing Income Tax Return (ITR) Online in India

Understand Your Form 16

Step-by-step Guide to File Income Tax Return Online