Indore: Disclosure of cash deposited during demonetisation in ITR made mandatory

Indore: It has been over seven months since demonetisation was imposed by the central government; but, its shadow is yet to leave the tax payers. Now, an individual will need to disclose the quantum of demonetised notes he or she had deposited in the banks during demonetisation in the Income Tax Return (ITR-1) to be filed by July 31, 2017.

Individual tax payers, with income from salary, interest and house property, up to Rs 50 lakh a year have to file their annual ITR by July 31 as well. Central Board of Direct Taxes (CBDT) has already notified the new simplified income tax return forms IRT-1 Sahaj for the assessment year 2017/18, making it just a one page form.

Though, nothing major change is being done in ITR, but since this will be a first ITR post demonetisation, CBDT has made one major change in the form.

Tax consultants informed that “CBDT wants to keep tracking black money by any individual tax payers during the period of demonetisation, and thus, a new column has been added in the ITR form. In order to account for those who have deposited Rs 2 lakh or more in a bank account during the demonetisation period, the tax department has introduced a new column where the person filing return have to give details of the money deposited in bank account. In that case, one needs to mention the IFSC code, name of bank, account number along with the amount deposited in the income tax return.”

They said that though the department has already asked banks to inform them about any such transaction during demonitisation period, but sources said that this exercise remained incomplete, as majority of the banks failed to send information to the department, forcing CBDT to seek the details from tax payers themselves.

Tax consultants suggested that tax payers should honestly mention the required information if they have done so. However, one more change has been made in ITR in this year. Now, mentioning Aadhar number has become mandatory for filling income tax return. Till last year it was optional for an individual to mention the Aadhaar number while filing the return, they informed.

“The asset and liability column has been removed from ITR- 1 (Sahaj) form. Earlier a person having income of more than Rs 50 lakh in a year had to declare assets and liabilities while filing the tax return. It has been done away with in ITR-1, as now a person with income of over Rs 50 lakh can’t file ITR-1. All the other forms still have the asset and liability column,” the experts added.

(For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal