The Central Board of Direct Taxes (CBDT) announced that the disclosure of the acquisition cost of all the assets like land, building and jewellery is mandatory, via each and every assessee, who have annual income above Rs 50 lakh amount, in the Income Tax return forms for assessment year 2016-17.
All the luxury items holdings which comprises utensils, apparels and furniture studded with precious stones and ornaments made of gold, silver, platinum or any other precious metal or alloy are also to be disclosed.
The CBDT told in new ITR forms instructions,”The amount in respect of assets to be reported will be the cost price of such assets to the assessee.”
If any, precious items had been received in the form of gifts, the candidate under define range of over 50 lakh have to tell the cost of acquisition by the previous owner along with value additions in the ITR form.
“In case where the cost at which the asset was acquired by the previous owner is not ascertainable and no wealth-tax return was filed in respect of such asset, the value may be estimated at the circle rate or bullion rate, as the case may be, on the date of acquisition by the assessee as increased by cost of improvement, if any, or March 31, 2016,” the instructions said.
All such kind of items and their value will be disclosed at the time of filling wealth tax returns earlier. Moreover, the introduced fresh reporting column that called ‘Asset and Liability at the end of the year’ also need to be filled in ITR-1, ITR-2 and 2A. The tax department notified the new ITR forms for assessment year 2016-17 in April.
Related: Free Download Income Tax Return E-Filing Software
Earlier, Revenue Secretary Hasmukh Adhia had said,”There are only 1.5 lakh individuals whose total income would be above Rs 50 lakh. This schedule in ITR only applies to ultra-rich and will not affect the common man.” In the proposed new ITR instruction total cost of movable and immovable asset also need to be disclosed where in immovable assets land and building are included while movable assets consists cash in hand, jewellery, bullion, vehicles, yachts, boats, aircraft etc.
Individuals having income from salaries, one house property and from other sources including interest will filed ITR-1. Individuals and HUFs not having income from business or profession will filed ITR-2. And those individuals and HUFs who do not have income from business or profession and capital gains and who do not hold foreign assets will file ITR-2A to provide information to the Income Tax Department
Source: Businesstoday.in
