New forms also seek more detailed declaration on bank accounts held by
taxpayers here and abroad
In a change that will impact millions of Indians, the new tax forms
released on Thursday have exempted taxpayers with Aadhaar cards from submit
payers with Aadhaar cards from ting their ITR-V by post after filing their
returns online.This will make the online filing procedure truly paperless even
for those who don't have digital signatures. The income tax (I-T) department
intends to link the electronic verification code (EVC) system-endorsed Aadhaar
card to the ITR (income tax return) form submitted by a taxpayer and the
authentication of the return will take place electronically. Till now, online
filing was paperless only if the person had a digital signature. Taxpayers who
did not have it had to post a physical copy of the ITR-V to the Central
Processing Centre in Bengaluru within 120 days of filing tax returns online.
This physical submission of the ITR-V acknowledgement slip prevented e-filing
from becoming a completely online process. The new forms have removed this
anachronism and made e-filing easier.
“A large number of e-filers skipped
this very important process, assuming the job was done once their return was
e-filed, whereas the I-T department doesn't consider a return filed unless the
ITR-V re filed unless the ITR-V reaches them on time,“ said Archit Gupta, CEO
and co-founder, ClearTax.in, a Delhi-based online tax filing portal. Moreover,
ITR-V had to be signed and printed properly so that the bar code was clearly
visible. ITR-Vs that did not conform these specifications got rejected. There
have been complaints of postal delays and losses in transit as well.
“It was unfair, to say the least, to
expect every single tax payer to have access to a printing facility and then
make the time to go to the post office to send the speed post. We're glad the
process is being done away with for those who have an Aadhaar card and with
this the e-filing process will become fully electronic,“ said Gupta. The refund
process should get faster and smoother. “One of the possible mechanisms for EVC
could be through an OTP sent on the mobile number of the taxpayer,“ Gupta said.
The new forms also seek a more detailed
declaration from taxpayers. It's now mandatory to list bank accounts held at
any time during the year in ITR-1, includ ing those that have been closed
during the period. Tax payers will also have to provide ac count numbers, name
of the bank, IFSC code and list any joint holders along with the closing
balance on March 31 of the assessment year.
ITR-2 now seeks particulars
of foreign bank accounts and assets held, details of overseas travel and
expenses on the trip. travel and expenses on the trip.It also seeks utilisation
details of amounts deposited in capital gains account schemes for the year.
Unutilized amounts from such schemes are taxed as short-term capital gains when
not invested within the specified period. “With this disclosure, the department
has eased its process of collecting tax by putting the onus of disclosure on
the tax payer,“ Gupta said.Source : The Economic Times - April 2015
