On Friday, the income tax department has notified income tax forms for the FY 2018-19 Ay 2019-20 for which tax filers have to file income tax return by July 31, 2019. And as per the new forms, individuals as well as businesses will need to disclose more information on professional and residential status together with their income. The move is aimed at bringing in more transparency for the department and thereby reduce scope of tax evasion.
As per the new norms individuals who have directorship or have investments in unlisted company shares in the last fiscal year will not be able to file their returns using ITR1 or ITR 4. For the same they now need to use ITR 3 or ITR 2 and need to make a disclosure of holdings of unlisted equity shares. This covers those who have received employee stock options (ESOPs) in unlisted companies, including those listed outside India, experts said.
Also, in respect of residential status, individual would need to reveal his total days of stay in India and abroad and can no longer make self-declaration in respect of residential status. Further, the scope in respect of disclosure of foreign assets and bank accounts has also been scaled higher.
Individuals making exemption claim for agriculture income need to disclose the address of such agricultural land and whether the persons holds it on lease or owns it.
It is to be noted that only super senior citizens aged 80 years and above can file tax return in physical form and that too those who file income in either ITR1 or ITR4 forms.
Also more disclosure needs to be made in respect of property transactions.