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Directors, investors in unlisted firms cannot file Sahaj, Sugam

An inpidual who has to report income on which tax deducted at source (TDS) has been deducted in another person's hands will not use the simple form.

The new income tax return (ITR) forms for assessment year 2019-20 seek intensive details from taxpayers, including reporting on directorship of an unlisted company, agricultural income, investment in unlisted equity shares and startups among others.

The forms were released by the Central Board of Direct Taxes (CBDT) on Friday. Additionally, ITR-1 Sahaj form meant for inpiduals excludes those who are directors of company or have investment in unlisted equity shares.

An inpidual who has to report income on which tax deducted at source (TDS) has been deducted in another person's hands will not use the simple form. "Bigger list of exclusions has been carved out for ITR-4 Sugam, which cannot be used by inpiduals/HUF (Hindu unpided family) who are not resident and ordinary residents, non-resident partnership firms, directors of companies or persons having investment in unlisted equity shares or having more than one house property," Amit Maheshwari, managing partner at Ashok Maheshwary & Associates, said.

Further, companies using ITR-6 to file returns will now be required to submit details of new schedules for shareholding of startups, shareholding of unlisted company and extensive detailing in the new assets-liabilities schedule.

The reporting requirements for otherwise-exempt agricultural income have been made more exhaustive by the Income Tax Department, which now asks for details of location of agriculture land, its area and quality.

A self-declaration on residential status of an inpidual is not any more sufficient as an inpidual would now be asked to report duration of stay in India and abroad. Similarly, more detailed reporting requirements are now required in respect of foreign assets/bank accounts.

"In summary, taxpayers need to be very careful this time and will need to collate additional details/reporting requirements well in advance this year, in order to be able to fulfil the reporting requirements prescribed in new ITR forms," Shailesh Kumar, director at Nangia Advisors (Andersen Global) said.

"We also expect greater automated scrutiny of ITRs, based on extensive data/details required and furnished in ITRs," he added.

Amarpal Chadha, partner and India mobility leader at EY India, said, "The tax return forms released for the tax year 2018-19 have clearly tried to bring more transparency through disclosures for globally mobile employees, who avail relief under tax treaty.

"Details of residence in foreign countries along with tax identification number, additional disclosure of assets held outside India, basis of determination of residential status in India and availability of tax residency certificate from foreign countries are some of the additional details, which would be required to be quoted in the return of income."