A significant change in income tax return forms for financial year 2015-16 (assessment year 2016-17) forms was made via introduction of Schedule AL. This schedule asks for value of assets and liabilities of the taxpayer, if annual income is more than Rs 50lakhs.
In a recent press release the income tax department has clarified –
With the passage of Finance Bill, 2015, wealth-tax is no longer leviable with effect from assessment year 2016-17. Taxpayers are, therefore, not required to file a wealth tax return from assessment year 2016-17 onwards. While abolishing the charge of Wealth-tax, the Finance Minister also announced that information which was required to be furnished in the return of wealth will now form a part of the Income-tax return.
Notable points –
- Wealth tax returns are not required to be filed for FY 2015-16(assessment year 2016-17)
- However, details of wealth must be disclosed in Schedule AL in the new income tax return forms for FY 2015-16 – forms here.
- Wealth tax was levied @ 1% on net wealth in excess of Rs 30lakhs. However, there is no tax has to be paid on the net wealth declared in the income tax return forms.
- Wealth tax return forms (Form BB applicable from assessment year 2014-15) were more detailed, requesting address of properties, name of valuer, weight, description of jewellery owned, including details of agricultural property, further, breakup of deposits held with banks, investments in bonds, debentures, shares, postal savings and loans advanced etc had to be provided. Click Form BB_wealth tax return form to download Wealth tax return Form.
- The schedule AL is condensed & short as compared to the wealth tax return form.
- Further instructions are awaited on how to fill schedule AL.
You can download income tax return forms for assessment year 2016-17 here.
You can also look at the changes in forms here.