Income Tax – New Returns and confusion thereon
The Central Board of Direct Taxes has explained the new forms and related issues. First a look at the new forms:
1. Form No.2F: This is for resident individual/HUF, not having Income from ‘business or profession’ or agricultural income or capital gains, not claiming relief in respect of arrears or advance of salary and not owning more than one house property.
2. Form No.1 is a combined form for return of income and return of fringe benefits for companies other than those claiming exemption under section 11;
3. Form No.2 is a combined form for return of income and return of fringe benefits for non-corporate assessees.
4. Form No.3 is a form for return of income for non-corporate assessees not claiming exemption under section 11 and not having income from business or profession.
5. Form No.3B is a residual form for return of fringe benefits
The circular explains that the return forms have been designed to make them amenable for electronic filing. If the return is furnished electronically under the digital signature, it will not be necessary to furnish the paper return.
E-return Schemes
1. Electronic Furnishing of Return of Income Scheme, 2004. Under this Scheme, e-return has to be filed through e-Return Intermediary, followed by a paper return. The scheme is applicable to all class of taxpayers who are assessed or assessable to tax at select cities.
2. Furnishing of Return of Income Internet Scheme, 2004. Under this Scheme, e-return has to be filed under the digital signature. The scheme is applicable only to “individual” taxpayers who has income under the head ‘”Salaries” but does not have any income under the head “Profits and gains of business or profession” and who are assessed or assessable to tax at any of the cities specified in Schedule ‘A’ of the Scheme
Clarifications: Board has clarified that
(i) The report of audit under section 44AB is not to be attached with the return. It should not be furnished separately also before or after the due date. However, an assessee should get the report of audit from an accountant under said section before the due date of the furnishing of the return and should fill out the relevant columns of these forms on the basis of such report. The assessee should retain the report with himself. It may be furnished in original during the assessment proceedings.
(ii) While processing the return under section 143(1), the credit for Tax deducted at source (TDS)/ Tax collected at sources (TCS) shall be allowed on the basis of details furnished in the relevant schedules of these returns as if the TDS/ TCS certificates have been filed.
(iii) These returns are not to be accompanied with any other document including any statutory form or report of audit.
(iv) The report as required under section 92E of the Income-tax Act shall continue to be furnished before the date specified in rule 10E.
(v) In the case of the old forms, the assessee could enclose documents, furnish reasons and make disclosures in support of claims made by him. However, it is not possible to do so in case of new forms as these are annexure-less.
(vi) The e-Return has to be filed at http://incometaxindiaefiling.gov.in. The paper return, if any, in respect of such e-returns shall be filed either at separate counter(s) to be set up for this purpose at each local income-tax office (whether on net-work or not) or at designated postal offices.
Have you filed the return in the old form? It is invalid!
Board clarifies that
“Since, old return forms are invalid returns after the date of notification of new forms, the taxpayers should resubmit the return in new forms in accordance with the new procedure.”
CBDT CIRCULAR NO.9/2006, Dated: October 10, 2006