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<ul><li>You must disclose income from virtual digital assets (VDA)s such as <keyword id="2420795" type="General" weightage="20" keywordseo="cryptocurrencies" source="Orion">cryptocurrencies</keyword>, non fungible token (NFT)s and more in the ‘schedule VDA’ provided in the <keyword id="6374875" type="General" weightage="20" keywordseo="itr" source="Orion">ITR</keyword> form. </li><li>Schedule VDA requires information such as the acquisition date, transfer date, category of income for taxation, acquisition cost in the case of a gift, and consideration received. </li><li>The donation reference number (ARN), obtained from the form 10BE donation certificate must be included in the ITR to avail 80G deductions. </li></ul>With the <keyword id="6354751" type="General" weightage="20" keywordseo="income-tax" source="Orion">income tax</keyword> filing deadline less than a month away, you need to ensure you are up-to-date on all the changes that are applicable this year. While modifications in tax and taxability of income from insurance policies (other than ULIPs) are among the most notable changes that have drawn a lot of attention, there are a couple of lesser known changes one should be aware of when filing one’s taxes. We take a look at these changes. The first is about disclosing income from virtual digital assets (VDAs) such as cryptocurrencies. “The taxpayer must disclose income from VDAs such as cryptocurrencies, NFTs, and so on in the "schedule VDA" provided in the ITR form,” says Aashish Sharma, co- founder and litigation head, Lex N Tax, a tax consultancy firm. Schedule VDA requires information such as the acquisition date, transfer date, category of income for taxation, acquisition cost in the case of a gift, and consideration received. “Those who get VDA income are not eligible to file ITR-1 or ITR-4. Such income can instead be declared in ITR 2 or ITR 3. Further, income from VDAs can be taxed either under the head of business income or capital gains,” says Sharma. Budget 2022 had introduced new NFT (non fungible token) and VDA regulations. The transfer of such assets will be subject to an income tax rate of 30% plus a surcharge and a levy beginning April 1, 2022, as per recent regulations. “TDS will be deducted at 1% of the sale price beginning July 1, 2022. This tax will be deducted by the developer, intermediary, broker or donor. The taxpayers cannot set off losses or carry forward the losses within crypto or from different heads,” says Suneel Dasari, founder and chief executive officer at EZTax, a tax portal. <cmsannotation type="cmsannotation" annotationid="Provide details of donation reference number to avail 80G deductions" comment="subhead" text="Provide details of donation reference number to avail 80G deductions">Provide details of donation reference number to avail 80G deductions</cmsannotation> To avail a deduction under <keyword id="1667689" type="General" weightage="20" keywordseo="section-80g" source="Orion">Section 80G</keyword> for donations made to charitable institutions, non governmental organisations or research universities, it is crucial to possess the donation receipt, and the donation certificate in Form 10BE. Taxpayers must provide the necessary information regarding their donations in the relevant 'Schedule 80G' within the ITR form in order to claim the deduction. “All approved u/s 80G charitable institutions, NGOs, and research universities must submit Form 10BD for all donations received during the fiscal year. They must also provide form 10BE to the recipients,” says Dasari. Form 10BE, containing a unique registration number, will be issued to benefactors after form 10BD has been filed by the institution. It is essential to enter donation details accurately in the appropriate table while filing the ITR. There is a new column under Table D for disclosing the donation reference number (ARN) for donations made to eligible entities where a 50% deduction is allowed, subject to the qualifying limit. The ARN, obtained from the form 10BE donation certificate issued by the institutions who received the donation, must be included in the ITR. This has been implemented to match donor and donee records and reduce the prevalence of fraudulent donations claims.

Two new tax rules you should be aware of when filing your taxes

<ul><li><keyword id="1673591" type="General" weightage="20" keywordseo="indian-residents" source="Orion">Indian residents</keyword> are required to report their foreign investments, which may include holdings in foreign <keyword id="6354298" type="General" weightage="20" keywordseo="stocks" source="Orion">stocks</keyword>, bonds, or other financial instruments. </li><li>Ownership of foreign real estate, whether residential or commercial, must be reported to Indian tax authorities. </li><li>If you possess ESOPs from a foreign company, you are required to disclose these foreign holdings when filing your <keyword id="6354751" type="General" weightage="20" keywordseo="income-tax" source="Orion">income tax</keyword> return. </li></ul>Recently, the IT Appellate Tribunal of Mumbai imposed a penalty of ₹10 lakh per year on <keyword id="59866" type="General" weightage="20" keywordseo="taxpayers" source="Orion">taxpayers</keyword> who failed to report <keyword id="466213" type="General" weightage="20" keywordseo="foreign-assets" source="Orion">foreign assets</keyword> under schedule FA of the income tax return (ITR) form. The penalty was levied under black money Act. Compared to the Income Tax Act, the penalty under the black money act is enormous. "The ITAT decision is a wake-up call for many working professionals and NRIs regarding the complexity of tax compliance in India; even if the taxpayer has paid their taxes, mere non-disclosure results in hefty penalties,” says Suneel Dasari, CEO and founder, EZtax.in. Here's a breakdown of the key foreign assets and income that must be disclosed in the income tax returns. <cmsannotation type="cmsannotation" annotationid="Foreign investments" comment="Subhead" text="Foreign investments">Foreign investments</cmsannotation>: Indian residents are required to report their foreign investments, which may include holdings in foreign stocks, bonds, mutual funds, or other financial instruments. This reporting extends to income generated from these investments, such as dividends, interest, or capital gains. Individuals need to disclose the nature and value of these investments in their tax returns. For example, if you have invested in shares of Microsoft or Apple, the investments and any income from them, need to be disclosed when filing your tax returns. <cmsannotation type="cmsannotation" annotationid="ESOPs" comment="subhead" text="ESOPs">ESOPs</cmsannotation>: If you possess employee stock ownership plans (ESOPs) from a foreign company, you are required to disclose these foreign holdings when filing your income tax return, typically under schedule FA. “In India, when an Indian employee is allotted shares of a foreign parent company as a part of their compensation or as an employee stock option plan (ESOP), it is considered an investment in foreign assets,” says Abhishek Soni, CEO, Tax2Win.in, a tax filing platform. Foreign bank accounts: Any foreign bank accounts, whether savings, current, or fixed deposit accounts, must be reported. This includes accounts held individually or jointly, along with details such as the name of the bank, account numbers, and the highest balance maintained during the financial year. <cmsannotation type="cmsannotation" annotationid="Foreign real estate" comment="Subhead" text="Foreign real estate">Foreign real estate</cmsannotation>: Ownership of foreign real estate, whether residential or commercial, must be reported to Indian tax authorities. This includes details about the property's location, current market value, and any income generated from it, such as rental income. “Any rental income or capital gains from selling these assets may be subject to taxation,” says Soni. <cmsannotation type="cmsannotation" annotationid="Financial or beneficial interest in overseas entities" comment="Subhead" text="Financial or beneficial interest in overseas entities">Financial or beneficial interest in overseas entities</cmsannotation>: In case an individual possesses a financial or beneficial stake in any overseas entity, such as serving as a partner in an overseas limited liability partnership (LLP) or firm, or receiving benefits from a foreign private trust, it is imperative to disclose this interest in accordance with tax regulations. “Residents in India with foreign income from ESOPs, or the voluntary purchase of foreign stock or other non-tangible instruments are at risk due to country or central bank level reciprocity agreements that would allow the Indian government access to information that would otherwise be unavailable,” says Dasari. Non-declaration also revokes your right to claim relief under the double taxation avoidance agreement for your foreign income. Hence it is critical to disclose such foreign assets in the schedule FA of ITR.

Have foreign assets or income? Not disclosing it may lead to heavy penalties

Central Board of Direct Taxes (CBDT), the Indian authority responsible for administration of the direct tax laws, has recently released instructions to fill up the new forms of Income Tax Returns. However, experts are of the opinion that filling up the new schedule for declaration of assets and liabilities is not going to be easy. 
 
Individuals and HUFs earning more than Rs 50 lakh in a year will be required to disclose their moveable and immovable assets and liabilities in a new AL section for AL. 
 
The declaration would have to be done at cost, which means that they have to be declared at the price at which they were acquired by the taxpayer. This is what experts feel will be a huge challenge because of the dynamic nature of assets because of appreciation or depreciation in their values. Not only this, since the assets value keeps on changing, the declarations would not be able to paint a fair picture of the net worth of a person. 
 
"A luxury car may have been acquired at a certain price but depreciates as soon as it turns around the corner. It would be unfair to book it at cost price. Similarly, jewellery bought, say, 10 years ago would have multiplied many fold. Showing it at cost price will defeat the purpose of declaring the net worth," Archit Gupta, founder of ClearTax.in, told ET. 
 
Another problem for the tax payers would be to ascertain the buying cost of assets that have been passed down from more than a generation ago. 
 
<a href="http://www.charteredclub.com/wp-content/uploads/2011/06/income-tax-return-1.jpg">Image source</a>

Filing new ITR forms is not a cakewalk, here’s why

<keyword id="104359" type="General" weightage="20" keywordseo="Income-tax-return" source="Orion">Income tax return</keyword> forms from next year will have a separate column for making disclosures on gains made from cryptocurrencies and paying taxes, Revenue Secretary Tarun Bajaj said on Wednesday. The government will from April 1 charge a 30 per cent tax plus cess and surcharges, on such transactions in the same manner as it treats winnings from horse races or other speculative transactions. <cmsannotation type="cmsannotation" annotationid="wazirx" comment="wazirx" text="wazirx">wazirx</cmsannotation> In an interview with PTI, Bajaj said gains from cryptocurrencies were always taxable and what the Budget proposed is not a new tax but providing certainty over the issue. "The provision in the Finance Bill is related to taxation of virtual digital assets. It is to bring certainty in taxation of cryptocurrencies. It does not convey anything on its legality which would come out once the Bill (on regulating such assets) is introduced in Parliament," he said. The government is working on legislation to regulate cryptocurrencies, but no draft has yet been released publicly. In the meanwhile, a central bank-backed digital currency will start circulating in the next fiscal to usher in cheaper, more efficient currency management. The 30 per cent plus applicable cesses and surcharge of 15 per cent on income above Rs 50 lakh will have to be paid on income from cryptocurrencies, he said adding the income tax return form from next year will have a separate column to declare gains from crypto. "Next year <keyword id="6374875" type="General" weightage="20" keywordseo="itr" source="Orion">ITR</keyword> form will show a separate column for crypto. Yes, you will have to disclose," he said. The launch of 'Digital Rupee' by <keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword> as well as a 30 per cent tax from April 1 on profits from digital asset transactions, including cryptocurrencies and non-fungible tokens (NFTs) was announced by Finance Minister <keyword id="129243" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> in her budget speech on Tuesday, as the country keeps pace with the global move toward virtual financial instruments. "The Government was very clear that it has to push for a tax on income from crypto assets. So we have brought in maximum rate and levied 30 per cent, with an applicable surcharge. We have also brought in TDS, so we will now track the transactions," Bajaj said. The Budget 2022-23 also proposed a 1 per cent TDS on payments towards virtual currencies beyond Rs 10,000 in a year and taxation of such gifts in the hands of the recipient. The threshold limit for TDS would be Rs 50,000 a year for specified persons, which include individuals/HUFs who are required to get their accounts audited under the I-T Act. The provisions related to 1 per cent TDS will come into effect from July 1, 2022, while the gains will be taxed effective April 1. Also, no deduction in respect of any expenditure or allowance shall be allowed while computing income from transactions in such assets. It has also specified that losses from the transfer of virtual digital assets will not be allowed to be set off against any other income. No deduction has been allowed since cryptocurrencies and virtual digital assets do not have any economic value, except the underlying technology, Bajaj said. The crypto market in India grew 641 per cent in the year through June 2021, according to an October report by industry research firm Chainalysis. "It was always taxable, I am not saying it's not a new tax, I'm bringing certainty in tax. Now if you show crypto in the ITR form, you will have separate head crypto and it will charge you 30 per cent tax," he said, adding that the message behind the Budget announcement is that crypto is taxable. Gains from crypto are chargeable to income tax even at present, Bajaj said, adding the Assessing Officer will assess the ITR based on crypto income that the assessee has shown. "If somebody says it's a long-term capital gains tax (LTCG), he may say no it's not LTCG tax, it is a business income and hence liable to 30 per cent tax," he said. With regard to taxability of cryptocurrency prior to April 1, 2022, Bajaj said, "For transactions before April 1 you will show in some head in your ITR and the Assessing Officer will do an assessment for you". Giving example, he said currently trading in the derivative is not considered as investment or capital gain but is treated as business income. "The Assessing Officer will take a call on what head crypto gains should be charged," the Secretary said. Bajaj said the new currency that RBI will bring will also have the underlying blockchain technology. "So, what we are also saying is that since it doesn't have economic value, we will not allow set-off of losses or carry off loses." Bajaj said currently some people are showing crypto gains as income and paying taxes, but some people are not doing it. With TDS provision introduced, transaction information will reach tax department automatically. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/ether-cardano-and-solana-surge-in-trade-most-altcoins-in-the-green/slidelist/89289934.cms">Ether, Cardano and Solana surge in trade, most altcoins in the green</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/tata-motors-maruti-suzuki-tech-mahindra-hdfc-and-other-hot-stocks-on-february-2/slidelist/89287937.cms">Tata Motors, Maruti Suzuki, Tech Mahindra, HDFC and other hot stocks on February 2</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/china-may-not-like-cryptocurrencies-but-is-pushing-blockchain-across-164-cities-companies-and-other-entities/articleshow/89246924.cms">China may not like cryptocurrencies but is pushing blockchain across 164 cities, companies and other entities</a>

Income tax return form will have a whole new column just for crypto next year

In a new move, individuals who earn over Rs 50 lakh per year will have to declare the break-up of the net worth. 
 
As per the new guidelines by the I-T Department, individuals will have to disclose all assets and liabilities as on end of financial year 2015-16. 
 There are two categories in this-moveable and immovable. Under immovable, you will have to declare any land or building, whereas in movable assets, cash in hand (money in your <keyword id="25450" type="UNKNOWN" weightage="20" keywordseo="savings">savings</keyword> account), vehicles (including yacht, boats and aircraft), jewellery, bullion and other valuable metals will have to be declared. 
 
"While further instructions on how to value assets are awaited, taxpayers will find it challenging to value their assets themselves, especially jewellery and vehicles. Salaried individuals do not usually maintain fair market value of jewellery owned or written down allowance (depreciation) of vehicles owned by them," Archit Gupta, CEO and founder, ClearTax.in, told ET. 
 In the budget 2016, Finance Minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> brought professionals earning up to Rs 50 lakh a year under <keyword id="3286477" type="UNKNOWN" weightage="20" keywordseo="presumptive-tax">presumptive tax</keyword>. Earlier, under this process of tax-filing, apart from profit declaration no other details were required. The new forms will change this in case you have multiple businesses.

Individuals earning more than Rs 50 lakh will have to declare net worth now

As per <a href="http://www.businessinsider.in/Filing-new-ITR-forms-is-not-a-cakewalk-heres-why/articleshow/51695605.cms">new instructions</a> from <keyword id="128665" type="ORGANIZATION" weightage="100" keywordseo="CBDT">CBDT</keyword>, people having annual income of more than Rs 50 lakh will have to disclose the cost price of all their assets like land, building and jewellery in the ITR forms for AY 2016-17. These assets would also include utensils, apparels, furniture studded with precious stones, and ornaments made of gold, silver, platinum or any other precious metal or alloy. 
 "The amount in respect of assets to be reported will be the cost price of such assets to the assessee," the <keyword id="121964" type="ORGANIZATION" weightage="100" keywordseo="Central-Board-of-Direct-Taxes">Central Board of Direct Taxes</keyword> (<a href="http://www.businessinsider.in/Companies-to-say-goodbye-to-a-horde-of-identifications-one-unique-ID-numbers-is-enough-says-CBDT/articleshow/52039336.cms">CBDT</a>) has said while issuing instructions on the new ITR forms. 
 
Even if the precious items were gifts, the tax payers would still have to declare the cost at which the previous owner had acquired it, as well as the value additions. 
 
Also read: <a href="http://www.businessinsider.in/Now-you-can-rectify-mistakes-while-filing-income-tax-return-online/articleshow/50121731.cms">Now you can rectify mistakes while filing income tax return online</a> 
 
"In case where the cost at which the asset was acquired by the previous owner is not ascertainable and no wealth-tax return was filed in respect of such asset, the value may be estimated at the circle rate or bullion rate, as the case may be, on the date of acquisition by the <a href="http://www.businessinsider.in/More-than-27-lakh-assessees-added-to-Income-Tax-base/articleshow/50255901.cms">assessee</a> as increased by cost of improvement, if any, or March 31, 2016," the instructions said. 
 
Not only this, they will also have to declare whether such items and their value were already disclosed at the time of filing <a href="http://www.businessinsider.in/Direct-taxes-Thats-a-long-wishlist-for-the-Modi-Govt-to-fulfill-in-Budget-2016/articleshow/51120039.cms">wealth tax</a> returns. 
 
<a href="http://focusweek.my/Documents/Article/15367/TopStories_620x400_pg4-50605201521282425881501331204.jpg">Image source</a>

CBDT asks super-rich tax payers to declare cost price of expensive assets

<ul><li>The <keyword id="6374875" type="UNKNOWN" weightage="20" keywordseo="itr">ITR</keyword> forms now require additional details </li><li>There are changes in the <keyword id="3690072" type="PERSON" weightage="20" keywordseo="LTCG-tax">LTCG tax</keyword>, surcharge on total income, tax on income from house property and tax slabs </li><li> The deadline to file the returns is 31 July. </li></ul> The 2017 <a href="https://www.indiabudget.gov.in/">Budget</a> made a lot of changes in the filing of <keyword id="6355828" type="UNKNOWN" weightage="20" keywordseo="income-tax-returns">Income Tax Returns</keyword>. It is important to take care of these <a href="https://www.moneycontrol.com/news/business/personal-finance/here-are-some-important-changes-in-itr-filing-process-that-you-should-not-ignore-as-you-file-your-returns-2764231-7.html">changes </a>so that you can save yourself the effort and time of filing a revised return in case you commit any errors. The deadline to file the returns is 31 July. Tax slab decreases Income is categorised into different groups based on its amount and each such group is known as tax slab. Tax is charged at different rates for different slabs. The <keyword id="6354751" type="UNKNOWN" weightage="20" keywordseo="income-tax">income tax</keyword> slab rates have changed for the Annual Year 2019. For individuals with taxable income between ₹2.5 - 5 lakh, the tax has been reduced from 10% to 5%. The tax slab for individuals earning ₹5 - 10 lakh, and for those with income above ₹ 10 lakh, remain 20% and 30% respectively. Modification in tax on income from house property Section 24B allows you, as an individual, to make certain deductions from the net annual value of your house property. In the previous year, the entire amount was allowed to be deducted under Section 24B on the interest paid on home loan. However, it has now been restrict to ₹2 lakh. Furthermore, earlier a complete loss set-off from your house property was allowed. There was no ceiling on the amount. However, now the loss has been restricted to ₹2 lakh in one financial year. The remaining loss can get carried forward for the next eight years. Amendments in LTCG tax Earlier, long-term capital gains (LTCG) tax was claimed on an immovable property with the holding period of three years. It has now been reduced to two years, from AY19. Furthermore, the base year for tax indexing for determining the LTCG tax has been revised from <a href="https://economictimes.indiatimes.com/wealth/tax/budget-2017-shifted-indexation-calculation-base-to-2001-who-gains/articleshow/57034487.cms">1981 </a>to 2001. This means that the purchase price of an asset bought before 1 April 1981 could be calculated on the basis of the fair market value of 1981, however, from now onwards, the purchase price will be calculated based on the fair market value of 2001. New surcharge on total income Earlier the surcharge was 15% of income tax, only if the total income exceeds ₹1 crore. From AY19 a 10% surcharge will be applicable if the total income is between ₹50 lakh and ₹1 crore. If the income exceeds ₹1 crore, a surcharge of 15% would be required. Also, Section 87A earlier provided a rebate up to ₹5,000, but the same has been lowered down to half the amount, that is, upto ₹2,500. Need of additional details in ITR forms Sahaj or ITR-1 form, used by most of the salaried class, will now require additional details related to the break-up of your salary, such as details of perquisites, allowances etc. It would also require detail of income from your property including rental income, tax given to local authority, etc. Also, in the new ITR form, details of the exemption of capital under section 54 of the Income Tax Act need to be mentioned separately in relevant columns. Furthermore, the old ITR-4S tax form, mostly for businesses, has been renamed ITR-4 and would now need additional details such as secured/unsecured loan details, fixed assets, capital account, etc. Turnover details and GST declaration Taxpayers have to specify the exact turnover details while filing Goods &amp; Services Tax (GST) and would further need to mention the GST detail while filing their ITR. General advice <ul><li>You should keep all important documents in one place before you begin to file your returns. It will save time and reduce errors. </li></ul><ul><li>You must also claim all tax benefits and deductions properly, even if you forgot to mention them in your tax declaration. </li></ul><ul><li>You must note whether the interest you earn from your recurring deposits (RD) and fixed deposits (FD) are fully taxable at the applicable slab rates or not. Interest earned up to ₹10,000 from savings bank account is exempt under Section 80TTA.</li></ul>

Keep these changes in mind while filing your ITR to prevent errors

Tightening noose on <a href="http://www.businessinsider.in/searchresult.cms?query=tax+evaders">tax evaders</a>, the government and the <a href="http://www.businessinsider.in/searchresult.cms?query=Income+Tax+department+">Income Tax department</a> will keep a closer eye on those with foreign assets and income, which even includes the negligible interest earned on bank deposits, small earnings while on a short trip abroad or even an online project that paid you in foreign currency. 
 
The government is very concerned about uncovering <a href="http://www.businessinsider.in/searchresult.cms?query=black+money+">black money</a> this year, therefore a minor mistake or a miss can amount to concealment of information, call for scrutiny and land you in big trouble. 
 
What to do then? It is very simple. Unless you are an <a href="http://www.businessinsider.in/searchresult.cms?query=non-resident+Indian+%28NRI%29">non-resident Indian (NRI),</a> all your income earned, including the ones earned outside India, has to be reported in your <keyword id="6354751" type="COMPANY" weightage="80" keywordseo="Income-Tax">income tax</keyword> return and is taxable according to the Indian I-T Act, 1961. 
 There is a common misconception that if the income has been taxed abroad, it does not have to be declared in India. “However, rule is all the foreign incomes, whether taxed outside India or not, will have to be declared by assessees if they are Indian residents," says <keyword id="3020242" type="UNKNOWN" weightage="60" keywordseo="Anand-Satyapanthi">Anand Satyapanthi</keyword>, co-founder <keyword id="3020243" type="UNKNOWN" weightage="60" keywordseo="Quicko">Quicko</keyword>.com, an online tax filing website. 
 
Some taxpayers are also unsure whether they must disclose bank accounts held abroad where low interest is being earned. The new ITR-2 however requires you to declare all <a href="http://www.businessinsider.in/searchresult.cms?query=foreign+bank+account%27s+holding+">foreign bank account's holding</a> including those where they are beneficiaries along with details such as account opening date, interest accrued during the year and schedule and fields number under which the same income is reported. 
 
"In cases of joint holdings, the spouse too needs to report the bank details and file the return in in India even though he or she may not have taxable income," says Kuldip Kumar, Leader (Personal Tax), PwC. 
 
Declaring and claiming deductions: Declaration of foreign income is made under the same heads as income earned in India--salary, property, business and professional income, capital gains and other sources. You merely have to convert it in terms of rupees and add it to the incomes under these heads. 
 "Conversation into rupees can be done using the SBI telegraphic transfer buying rate (TTBR) of the last day of the month before the month in which income is due. So, for converting salary earned in June 2014, use the TTBR of the relevant currency for May 2014," says <keyword id="905877" type="UNKNOWN" weightage="60" keywordseo="Archit-Gupta">Archit Gupta</keyword>, co-founder and CEO, <keyword id="2763190" type="UNKNOWN" weightage="60" keywordseo="Cleartax">Cleartax</keyword>.in. 
 
Relief under DTAA: If a tax has already been deducted on your foreign income, you are allowed to take credit of such taxes under the DTAA treaty . First step is to obtain a TRC or tax residency certificate that certifies your tax residency status. 
 
"Make sure that the correct DTAA ANIMISHA has been applied. You will have to determine that up to what percentage and subject to which provisions the relief is allowed, which can then simply be deducted from your total tax li ability," says Varun Advani, Chief Operations Officer, Makemyreturns.com. Consider taking professional help in case you are confused. 
 
 (Image: Indiatimes)

Tracking black money: Be extra careful in declaring you foreign assets this year!

New Delhi, Dec 5 () The ED has attached assets worth over Rs 4 crore in connection with its money laundering probe against a Bihar-based man who is alleged to have opened bank accounts in the name of shell or bogus firms, the agency said on Thursday.
Raj Kumar Goenka was booked by the police in Bihar and the case against him is registered at the Mithanpura police station in Muzaffarpur district.The Enforcement Directorate (ED) alleged that Goenka misused KYC (Know Your Customer) information of his employees and other people to deposit and transfer illegitimate funds.
KYC is a process through which banks obtain information about the identity of their customers so that its services are not misused.
The agency said in its probe it found that the Goenka had opened many bank accounts fraudulently in the name of his family members and employees. Illegal and unaccounted cash was deposited in these accounts without showing any genuine source of income, the ED said. 
"The proceeds of crime placed in these bank accounts have been claimed as business income from firms like Kanta Sales Corporation, Pooja Trading Company, Pooja Jewellers, Manish Jewelers etc though no real business have been carried out by these firms," the agency said in a statement. 
No records relating to business operations by these firms could be produced during investigation and when these locations were raided by ED sleuths in June "nothing related to any business activity was found", it said. 
"Investigation revealed that Income Tax Returns (ITRs) declaring business income were filed regularly to cover up the crime. Even the ITRs in the name of school going children with fraudulently obtained PAN were filed to disguise the illegal money as business income," it alleged. 
Proceeds of crime generated in cash have been siphoned off after being layered through several bank accounts of multiple shell companies, the ED said.
The agency has issued a provisional order against Goenka under the Prevention of Money Laundering Act (PMLA) attaching three houses, valued at Rs 3.13 crore, in Muzaffarpur, two vehicles worth Rs 18.57 lakh, bank balances worth Rs 23.34 lakh and a life insurance policies of Rs 98.57 lakh.
The total attachment value under the latest order is Rs 4.53 crore. Probe in the case is ongoing, it said. NES NES ANB
ANB

Bihar: ED attaches over Rs 4 cr assets of man who operated shell firm accounts

Filing returns would now be simpler and more efficient for taxpayers with new <keyword id="2226237" type="UNKNOWN" weightage="100" keywordseo="ITR-forms">ITR forms</keyword>, including a three-page simplified one, <keyword id="6354751" type="COMPANY" weightage="100" keywordseo="Income-Tax">Income Tax</keyword> department notified today. The With government dropped the earlier forms after it attracted criticism for seeking numerous additional details like that of filers' foreign travel and about dormant bank accounts. With the <keyword id="25455" type="ORGANIZATION" weightage="20" keywordseo="finance">Finance</keyword> Ministry publishing the gazette order yesterday, taxpayers and other entities can now file their Income Tax Returns (ITR) till August 31. 

	The most simplified form, ITR-2A, to be filled by those individuals and HUFs who do not have income from either business, profession or by way of capital gains and do not hold foreign assets, only asks for the passport number of the tax-filer, with the words "if available".
 

	Filers now will have to declare only about the "total number of savings and current bank accounts" held by them "at any time during the previous year (excluding dormant accounts)."
 

	The form also has space to fill up the IFSC code of the bank and in an additional feature, tax filers have been given an option to indicate their bank accounts in which they would want their refund credited.
 

	The I-T department, in the new ITRs, has also sought the Aadhaar number of filers and has also given options for providing two email ids to it.
 

	"The inclusion of Aadhaar and emails are to ensure a regime of online ITR filing in the country," a senior official said to PTI.
 

	The department has also provided for an additional four-page schedule to this simplified form for those who wish to file any other details, applicable in a case-to-case basis.
 

	In the ITR-2, for individuals and HUFs having income from business or profession, the form remains simple but they will have to declare if they hold any foreign assets abroad or have income from "any source outside India."
 The new ITRs have replaced the 14-page form that were notified earlier this year, triggering a major controversy with individuals, industrialists and MPs saying tax filing would become cumbersome as those forms had sought details including foreign trips and bank accounts details. <keyword id="6355261" type="POSITION" weightage="100" keywordseo="Finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> had ordered putting these forms on hold following the controversy. 

	Also, in the new ITRs, an expat who is not an Indian citizen and is in India on business, employment or student visa, would not mandatorily be required to report the foreign assets acquired by him during the previous years when he was non-resident and if no income was derived from such assets during the relevant previous year.

New and simplified ITR forms for taxpayers

All cash payments of over Rs 2 lakh for paying loans and credit card bills during the 50-day period post demonetisation will have to be disclosed in the new one-page Income Tax return form, according to a PTI news report. 
 
The tax department a few days back notified new Income Tax Return (ITR) forms for filing of returns for the Assessment Year 2017-18 (financial year 2016-17). 
 
Besides providing for declaring income, exemption claimed and tax paid, the forms have a new column providing for declaration for any deposit of over Rs 2 lakh in bank accounts made during November 9 and December 30, 2016 after the old 500 and 1,000 rupee notes were demonetised. 
 
This column is also to be used for declaring cash payments in excess of Rs 2 lakh for repayment of any loan or settlement of credit card bills during this 50-day period, a senior official told PTI here. 
 
"The column is an attempt to match the cash deposits made post demonetisation with the annual income," he said. 
 
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. 
 
The tax department will collate the data it has of cash payments made in excess of Rs 2 lakh with the returns filed. "We want to see if the income profile matches with the cash payments made," he said. 
 
The move comes amid concerns of unaccounted cash or black money being used to settle bills after credit cards were used to make heavy purchases. It could also be that black money could have been used to repay loans. 
 
Post-demonetisation, the government had provided a 50-day window beginning November 9, 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. 
 
The changes made in ITR are an attempt to catch tax evaders, the official said. 
 
Revenue Secretary Hasmukh Adhia had last week told PTI that the new column of cash deposits made during November 9, 2016 and December 30, 2016 was a one-time feature in the ITR and would not be there in the ITR from next year onwards. 
 
The ITR, he had said, would evolve or change every year depending on the need. 
 
While coming out with new ITRs, the CBDT had also rationalised them and cut down the number of forms to seven from earlier nine. 
 
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 Rs 50 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 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.

Loans,
card payments above Rs 2 Lakh in cash to be shown in ITR

<ul><li>Salaried individuals who have started their careers can file their taxes on their own, as the e-filing portal has been simplified over the last few years. </li><li>Based on the deductions one can avail, one needs to decide whether to opt for the old or the new tax regime. </li><li>It is important to add all <keyword id="672797" type="General" weightage="20" keywordseo="interest-income" source="Orion">interest income</keyword> from savings accounts, fixed deposits, etc, and declare it when filing taxes. </li></ul>It is that time of the year again – when we have to file our taxes. While we can take the services of a professional to help us file our taxes, many of us may prefer doing this on our own since the process has been simplified in recent times. While many of us may be overwhelmed by the perceived complexity of filing taxes, it need not be such a difficult task. If you have just started working and/or if you have limited sources of income, you can easily file your returns on your own. “Salaried individuals who have started their careers can file their taxes on their own, as the e-filing portal has been simplified from the last few years. A lot of information is pre-filled when one files their India tax return," says Akhil Chandna, partner, Grant Thornton Bharat, a professional services firm. If an individual has a limited number of income sources such as salary, interest from deposits with banks, etc, and has a basic understanding of the tax laws and regulations, she can choose to file her taxes on her own. Chandna says that if you are filing your own taxes, here are some of the things that you need to do. <cmsannotation type="cmsannotation" annotationid="subhead" text="Gather all the necessary documents:">Gather all the necessary documents:</cmsannotation> Collect your salary slips, bank statements, Form 16, investment receipts, any donations made, rent receipts, Form 26AS, AIS/TIS etc, and have them all in one place. <cmsannotation type="cmsannotation" annotationid="subhead" text="Choose the correct Income Tax Return (ITR )Form:">Choose the correct <keyword id="104359" type="General" weightage="20" keywordseo="income-tax-return" source="Orion">Income Tax Return</keyword> (ITR )Form: </cmsannotation>There are different tax forms applicable for different types of income, so it is important to know <a href="https://www.businessinsider.in/personal-finance/news/which-itr-form-should-you-use-to-file-your-taxes/articleshow/100964135.cms">which form is required to be filled</a>. Choosing an incorrect form may result in an error in filing returns, necessitating a revision of the tax return. <cmsannotation type="cmsannotation" annotationid="subhead" text="Selecting the old or the new tax regime:">Selecting the old or the new tax regime:</cmsannotation> From Budget 2023-24, the new tax regime is the default tax regime. The new tax regime has a revised set of slabs that can reduce tax outgo. However, most of the deductions like 80C, 80D, and deductions on home loan principal, and interest repayment are not available under the new tax regime. For this reason, many<a href="https://www.businessinsider.in/personal-finance/news/investments-like-elss-ppf-and-tax-saving-fixed-deposits-are-likely-to-lose-their-sheen-in-new-tax-regime/articleshow/100464933.cms"> popular tax-saving investments</a> have lost their charm under the new tax regime. Therefore, it is important to consider all the available deductions, and choose the right tax regime. In most cases, if you do not have a home loan – which you are not likely to have when you start your job – the <a href="https://www.businessinsider.in/personal-finance/news/how-to-take-home-loan-benefit-in-2023-24/articleshow/99575363.cms">new tax regime</a> would make more sense. <cmsannotation type="cmsannotation" annotationid="subhead" text="Disclosures to be made:">Disclosures to be made: </cmsannotation>Where applicable, these disclosures need to be made: bank accounts, assets and liabilities schedule, schedule of foreign assets, number of days’ presence in India, details of directorships, unlisted shares, etc. <cmsannotation type="cmsannotation" annotationid="subhead" text="Common mistakes to avoid">Common mistakes to avoid</cmsannotation> <keyword id="189207" type="General" weightage="20" keywordseo="tax-filing" source="Orion">Tax filing</keyword> involves many steps, and there are some mistakes that one may be making. This is how you can avoid them: <cmsannotation type="cmsannotation" annotationid="subhead" text="Not declaring interest income:">Not declaring interest income:</cmsannotation> “Remember to declare the interest on savings bank a/c, income tax refund (if any), etc, in your income. Many times, people miss out on the same,” says Vivek Jalan, partner, Tax Connect Advisory. He adds that interest on fixed deposits/debentures/etc as available in Form 26AS/AIS should be declared as income. There may be a difference in the amounts reported in 26AS, and what you actually receive in your bank account due to the fact that interest accrues periodically, but may be paid only on maturity. However, TDS (tax deducted at source) may be cut on an accrual basis. <cmsannotation type="cmsannotation" annotationid="subhead" text="Not disclosing exempt income:">Not disclosing exempt income:</cmsannotation> All income must be disclosed, irrespective of whether it is taxable or exempt. Many taxpayers, out of ignorance, fail to provide details of proceeds from life insurance policies or gifts from relatives, which are exempt from tax. Though such income is not liable to be taxed, however, it’s mandatory to disclose this income in your tax return. <cmsannotation type="cmsannotation" annotationid="subhead" text="Not e-verifying tax returns on time:">Not e-verifying tax returns on time:</cmsannotation> The timeline to e-verify tax returns has been reduced from 90 days to 30 days for all tax returns being filed after 01 August 2022. Therefore, one should e-verify the tax return immediately after filing the tax return. <cmsannotation type="cmsannotation" annotationid="subhead" text="When in doubt, seek help from a professional">When in doubt, seek help from a professional</cmsannotation> India is the second-most complicated tax jurisdiction in Asia Pacific after China. “It has become all the more complicated with the massive data analytics and data mining conducted by the Income Tax Department and also sharing of the data between various agencies like banks, investment vehicles, GST, etc,” says Jalan. Incorrectly filing taxes may result in a tax notice. While you can file your own taxes, especially if you have just started your career, you should be sure to seek the guidance of a tax expert in case of doubts.

Looking to file taxes on your own? Here is what you need to keep in mind

The <keyword id="65338" type="ORGANIZATION" weightage="20" keywordseo="Income-Tax-Department">Income Tax Department</keyword> is keeping a hawk’s eye on transactions in banks. The de-monetisation of Rs 500 and Rs 1000 notes, in a bid to curb <keyword id="6356023" type="UNKNOWN" weightage="20" keywordseo="Black-Money">black money</keyword>, will lead to disclosure of people having illicit money stashed with them. 
 
If you are going to deposit money in your bank account in coming days, here’s a checklist and if yours is black money, get ready for the following notices by Income Tax department. 
 
1. Notice under section 142(1): 
 
If you have never filed your income tax and show up at your bank to deposit money, the banks will ask for your PAN card. Through your PAN card, the I-T Department will get alerted of some wrongdoing. They can issue you a notice under Section 142 (1), asking you to furnish your ITR within 15 days. The Assessing Officer (AO) can also enquire about your personal belongings and can ask you to submit your personal books of accounts, apart from professional. This notice will come with a notice under Sections 144, 148 or 153A. 
 
If you fail to do so, the A.O will assess your income and impose tax and penalty as per his/her own judgement. The A.O can also slap a show cause notice under Section 144. Not complying with the notice directives can lead you to a minimum fine of Rs 4 per day which may extend up to Rs 10 per day for each day the failure continues. You might end up in prison for up to 1 year. 
 
2. Notice under Section 148 
 
The AO can ask you to furnish details of last six financial years, explain source of your income, etc. If there is a mismatch in your tax filing and incomes, the AO can ask you to give payable tax under Section 156. 
 
3. Section 153A (Raid) 
 
If there are major irregularities, the income tax department can also conduct a raid at your place to find out other assets like gold, property papers, benami transactions etc. You won’t get an advanced notice for it. 
 
4. Notice under Section 143(2) 
 
If you haven't been declaring your full income while filing taxes, you will get a notice under Section 143(2). This means the department has picked you up for assessment and scrutiny. You will have to produce documents of your income declared in your ITR. For the financial year 2015-16, a notice under this section can be issued till 30.9.2017. In the notice the A.O can ask for books and accounts for any number of previous years.

You Searched For "asset declaration ITR" and got 13 results

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