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Taxpayers will need to disclose all their bank accounts

Posted Date : 18-Apr-2015 , 08:39:37 am | Posted By CASANSAAR print Print
Taxpayers will now have to disclose all bank accounts held by them in India and details of their foreign travel in their income-tax returns (ITR) as the tax department moves to check black money both domestically and abroad.
Taxpayers will have to declare income accruing from foreign assets in the returns, besides details such as foreign bank accounts, foreign assets and immovable property located outside India that they had to disclose earlier.
They will also have to give their Aadhaar number in the tax return if they have one.
The changes, effective from assessment year 2015-16, will require taxpayers to give many more details to the tax department than previously sought. Since the department is now seeking information about foreign travel and bank accounts held over the previous year, it will make the filing of the tax return a long and tedious process, analysts said.
“Additional disclosures mandated in the new income tax return forms reaffirm the government’s intent to track taxable income overseas and in India. Changes incorporated in the tax returns were expected from the budget speech of the finance minister and subsequently with the introduction of Undisclosed Foreign Income and Assets (Imposition of Tax) Bill,” Tapati Ghose, a partner at consultancy Deloitte Haskins and Sells Llp, said in a note.
The government introduced the bill in Parliament’s budget session to tackle unaccounted money stashed in overseas banks by Indians. It also proposes to bring in a stronger Benami Transactions (Prohibition) Bill to check domestic black money. Benami transactions are those made under a fictitious name or in the name of a person who holds an asset as a proxy for the real beneficiary.
As per the format of income-tax returns notified by the Central Board of Direct Taxes, the return requires individuals to give the number of bank accounts they held at any time during 2014-15, along with the balance on 31 March as well as details of joint holders. In case of foreign travel, the taxpayer will have to disclose the passport number, the countries visited, the number of trips abroad in the previous fiscal and expenses incurred from own sources of income. Even in cases of business travel overseas, the taxpayer will have to maintain a report of expenses incurred.
A taxpayer will not be able to file manual returns if a refund is being claimed or if she has income from sources abroad. The tax department has also sought more details of short- and long-term capital gains and asked for information pertaining to tax residency certificates that enable firms and individuals to seek benefits under tax treaties.
“Till now, such information was sought for by the tax officer during tax assessments and the requirement reflects the government’s intention to collate the information at time of filing of the Income tax return,” said Ghose.
The tax returns also seek additional details on computation of agricultural income. (PTI - Mint)

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