In an attempt to facilitate electronic filing of income-tax (IT) returns, the IT department has said that new forms can be submitted without any annexure from this assessment year. This means that you will no longer have to attach a cash flow statement or Form 16—given by an employer for paying taxes in advance during the year—with the new return form.
The declaration came last week when the department introduced eight income-tax return forms. Of these, four are for individuals and Hindu Undivided Families (HUFs).
These are stand-alone forms that incorporate almost all the tax details
Form ITR-1 is for salary earners who also draw income from interest.
Form ITR-2 is for individuals with income from any other source, except business or a profession.
Form ITR-3 is for individuals and HUFs who are partners in firms and do not have a proprietary business or profession.
Form ITR-4 is for those who have income from a proprietary business or profession.
Form ITR-5 and 6 are for companies.
Form ITR-7 is for charitable or religious trusts.
Form ITR-8 is for people who are not liable to file returns, but are liable for fringe benefits.
New information required
In case of high-value transactions, you are required to furnish information, but have the privilege to keep the source of information secret. Source of information has been done away with as banks and other institutions regularly provide the department with details of high-value transactions.
The proceedings that are categorized as high-worth transactions are:
Cash deposits exceeding Rs10 lakh in a year in a savings bank account.
Credit-card payments aggregating Rs2 lakh or more.
Purchase of mutual funds units for Rs2 lakh and more.
Acquisition of bonds or debentures for Rs5 lakh and more.
Purchase of shares exceeding Rs1 lakh or more.
Purchase or sale of immoveable property for Rs30 lakh and more .
Investment in Reserve Bank of India bonds for Rs5 lakh or more.
The new tax return forms can be filed electronically, though e-filing has not been made compulsory for the current tax year.