Changes in ITR Forms for AY 2015-16

Changes in Income Tax Return Forms for AY 2015-16

Changes in Income Tax Return Forms for AY 2015-16

The new Income Tax Return (ITR) Forms ITR–1, ITR-2, ITR-4S have been notified for AY 2015-16. We have highlighted the changes in these forms from last year.

Common Changes:

Following are the changes in ITR Rules:

  1. You cannot fill ITR-1 (Sahaj) and ITR-4S (Sugam) if you have any income from sources outside India
  2. EVC verification linked to aadhar number has been introduced as an alternative to sending physical ITR-V to CPC, Bangalore. So for people with aadhar card there would be no need to post their ITR-V to CPC.
  3. Super senior citizens i.e. people with age more than 80 years can file their ITR in paper form subject to certain conditions.

ITR would become complicated for all freelancers, coders, content providers and bloggers as they do have income from sources outside India. Now they would not be able to fill ITR-1 or ITR-4S.

Download: Tax Planning Guide for FY 2015-16

We have highlighted changes in the respective form below:

ITR-1 (Sahaj):

1. Aadhar Card Details: A column has been added to furnish aadhar card details if you have one. This would be used for EVC verification system as described above.

Option to provide Aadhar Number in ITR Forms

Option to provide Aadhar Number in ITR Forms

2. Bank Account Details: You need to mandatorily furnish details of all your bank accounts held singly or jointly including any account closed in FY 2013-14. The details include account number, bank name, IFSC Code and balance as on March 31, 2015.

Mandatory disclosure of details of Bank Accounts in ITR Form

Mandatory disclosure of details of Bank Accounts in ITR Form

ITR-2:

1. Aadhar Card Details: A column has been added to furnish aadhar card details if you have one. This would be used for EVC verification system as described above.

2. Details of Foreign Travel: You would need to furnish details of foreign travel made (For resident and nonresident both) including Passport No, Issued at, name of country, number of times traveled and expenses.

3. Capital Gains Account: You need to provide all the details like amount utilized, year of utilization, amount lying unutilized, etc for capital gains account held by you for years proceeding to last to assessment years.

4. Bank Account Details: You need to mandatorily furnish details of all your bank accounts held singly or jointly including any account closed in FY 2013-14. The details include account number, bank name, IFSC Code and balance as on March 31, 2015.

5. Changes for Non-residents:

Following 2 changes have been made for NRIs:

  1. In case LTCG & STCG is not taxed on account of DTAA benefit, NRIs would be required to furnish Country name, Article of DTAA, TRC obtained or not
  2. If the income from other sources is taxed at special rate provided in DTAA, NRIs would be required to provide details of Name of Country, Relevant article of DTAA, Rate of Tax, Whether TRC obtained or not, Corresponding rate of tax under income tax act

6. Changes in Foreign assets disclosure:

  1. Foreign Bank accounts details: You would need to disclose Account number, account opening date, Interest/income accrued from such account, If any along with details of head of income and schedule under which such income is shown, if offered to tax in India for all your foreign accounts.
  2. In similar manner, details of income from financial interest in any entity outside India need to be disclosed.
  3. Similar disclosure requirement is also required for Immovable property outside India, capital asset held outside India, trust held outside India

ITR-4S (Sugam):

1. Aadhar Card Details: A column has been added to furnish aadhar card details if you have one. This would be used for EVC verification system as described above.

2. Bank Account Details: You need to mandatorily furnish details of all your bank accounts held singly or jointly including any account closed in FY 2013-14. The details include account number, bank name, IFSC Code and balance as on March 31, 2015.

We would soon be publishing more details about income tax returns. You can ask any questions through comments.

7 thoughts on “Changes in ITR Forms for AY 2015-16

  1. Does anybody really knows which ITR from to fill for adsense earners?
    Some say ITR4, others say ITR4S. This is frustrating.

  2. ” ITR would become complicated for all freelancers, coders, content providers and bloggers as they do have income from sources outside India. Now they would not be able to fill ITR-1 or ITR-4S ”

    My earning source is Adsense.

    Which ITR form should we use now ?

    • All bloggers with income from Google Adsense will have to file returns using Form ITR 2 or ITR4. This is because the income is in US Dollars which would be considered as “income from source outside India” for income tax purpose.

      • Hey Amit,

        You are confusing freelancers by this article. ITR 2 is not supposed to be filled by Bloggers/Freelancers. You should check the “Instruction to fill ITR-2” by IT department which clearly states that This Return Form should not be used by an individual or a Hindu Undivided Family whose total income for the
        assessment year 2015-16 includes Income from Business or Profession.

        Blogging/freelancing of any kind comes under profession and ITR 4S should be filled. In fact one of the largest online tax filling website ClearTax states the same thing. If income is less than 1 crore for professions (it includes many from photographers, artists …to blogging) ITR 4S should be filled. If more than 1 crore then ITR 4 should be filled.

        • Thanks for your comment Satyendra. Let me clarify it and also would make change in the post accordingly.

          There are two ways bloggers/freelancers can file their ITR. If the income from Adsense is not high then you can just put the revenues as “Income from other sources” and file return through ITR 2 (as this is income is in USD). In case you have substantial blogging income then you can treat it a business and file return using ITR4.

          Bloggers who have income from Adsense cannot file ITR 4S as the income received is considered as commission which is exempted type of business for ITR 4S. But freelancers and artists can use form ITR4S if they get direct payment from clients and not through Adsense or similar service providers.

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