Usually, the IT department releases Income Tax Return forms for each financial year near the return filing date. Currently, these forms are available for Assessment Year 2014-15. Forms for Assessment Year 2015-16 have not been released yet. As per the forms of Assessment Year 2014-15, Assesses may be required to disclose details of some assets in the Income Tax Return. Lets take a look at what these details are.
Foreign Assets – Details of Foreign assets are required to be submitted by all assesses except those who file ITR 1. ITR 1 is filed by those who have only salary/pension and earn an income from one house (may have income from other sources excluding race horses & lottery). A separate section for disclosure of assets has been created in which the IT Department requires
- Details of Foreign Bank Accounts
- Details of Financial Interest in any Entity
- Details of Immovable Property
- Details of any other asset in the nature of Investment
- Details of accounts in which the assesse has a signing authority
- Details of trusts in which the assesse is a trustee
It has also been laid out that a return must be filed by you in case you have any of these assets, even when you don’t have an income which is taxable.
Therefore, if you own any assets in a foreign country, do remember to maintain details of these assets and disclose as required. Here is a snapshot of the information required.
Indian Assets – In the Tax filing forms of financial year 2012-13 and 2013-14 the Income Tax Department requires you to make a disclosure of your assets in your Income Tax Return. However this is applicable when –
- You earn business income or professional income, either from a partnership firm or a business, a proprietorship or as a consultant AND
- Your Total Income is more than Rs 25lakhs.
If you meet both these conditions you will be required to submit details of your assets to the IT Department. This is applicable for assesses who file in ITR3 and ITR4. Do remember that these details of assets are your own assets and not of the business or the partnership firm.
Here is a snapshot of the information required.
It is important to make these disclosures to the IT Department. This helps the department relate your assets to your Income. Also, in case you happen to sell any of these Indian or Foreign Assets and have a gain on them, the department may go back to check its records for your disclosures.
If you have any questions regarding these, do write to us firstname.lastname@example.org and we will be happy to assist you!