New disclosures under new ITR forms for AY 2016-17 issued on 31st March 2016

On the eve of 31st March 2016 new ITR forms have been launched. Under new forms some additional disclosure are required to be made.

Declaration of net worth for assesses earning more than Rs. 50 Lac: Taxpayers earning more than Rs. 50 Lac will have to declare their net worth. A newschedule -schedule -AL has been added to all ITR forms.Under this schedule all individuals having income of more than Rs. 50 Lac will have to disclose all their assets and liabilities , as on the end of FY 2015-16.

Assets are divided into two categories movable and immovable. Immovable assets will include the assets of fixed nature like land and building whereas movable assets will include cash in hand, Vehicles, Jewellery Etc. and Liabilities will include any outstanding loan.No instruction for valuation of assets is provided yet but is awaited as it will be very difficult for assessee, specially salaried assesses to value their assets themselves.

Also you will have to give the disclosure of business you earn from if there are more than one.A new section under form 4S is inserted seeking details including code , nature and description of three main business activities or products that you earn from.

Earlier this information was required only under ITR-4 which is for a wide range. ITR -4S is filed by assesses file return under  presumptive income and don’t maintain books of accounts.ITR -4S was kept simple so that taxpayer not maintaining the Books of accounts(as they are exempted from maintaining books of accounts under presumptive taxation scheme) don’t face much issues while filing ITR. Let us remind you some days back professionals were also added under presumptive taxation scheme with 50% of their receipts was taken as income.

Form 4S is also available for partnership firms now.They will have to declare the salary and interest paid to the partners.