Nothing in life is certain except for death and taxes. Given how much people pay for taxes, it’s quite a surprise to know that many people still don’t know the first thing about filing an income tax return form. If you’ve always found yourself stumped whenever you found yourself dealing with this document or always dreaded the time you had to spend filling out these forms, here are six important things you need to know about your income tax forms:
1. The New ITR Forms
Remember the days when you had to contend with 14 pages of complicated forms? ITR forms now come with only three pages. That’s a tremendous improvement and makes it a whole lot easier for you to complete your tax papers. It certainly means a lot less time and hassle for you.
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2. The ITR 2A Form
If your income includes gains from more than one real estate property as well as capital gains, then you need to file the ITR-2 form. However, bear in mind that you only need to fill this one out if you receive your income from more than one real estate property, but you get zero income from capital gains. You also do not have income coming from a business or profession or any other foreign assets or foreign sources of income.
3. Hindu Undivided Family
Hindu Undivided Family or HUF refers to those who have exempt income, one that comes with no ceiling limit. An exception, though, applies to agricultural income higher than Rs 5,000. HUFS can file Form ITR 1 (Sahaj).
4. Foreign Travel
Afraid you’ll have to provide a ton of information on your international travels? No need to worry about that hassle. You only need to make sure you provide your passport number when you fill out forms ITR-2 and ITR-2A. You won’t have to pack this along with the details of your trips or expenses abroad. If you travel quite intensively, this gets a load of tedious work off your back as well.
You also won’t have to worry about disclosing any details regarding dormant accounts you own if these accounts have not been operational or show no financial activity in the last three years. Instead, the Ministry of Finance says that you only need to provide your IFSC code. Do not forget to include the number of all the current or savings accounts you had throughout the previous year. That sounds like a lot of work already. So you will be happy to note that you will not be required to provide the balance in your accounts.
In question Like this story? If you are not a citizen of India and you have businesses in India, or you have an employment or student visa, then there is no need to declare any of the foreign assets you hold if those assets did not generate any income during the year. For daily tips and income tax news, visit MoneyBhaskar.