Income Tax Returns AY 2015-16

- Changes & Issues of New ITRs

Organised by:

CA Chintan N. Patel

Naresh J. Patel & Co.

Chartered Accountants

25th August, 2015

Shantinath Hall, ICAI

Organised by:

Ellisbridge CPE Study Circle of

WIRC of ICAI

2017 onwards, India will be getting real-time information about expenditure by Indian individuals in foreign countries as part of an arrangement with G-20 countries

– Finance Minister – Arun Jaitely

2CA Chintan Patel

Relevant CBDT Notifications/Order

Date Reference No. Particulars

15-Ap-15 Notification No. 41/2015

Substitution of Forms Sahaj (ITR-1), ITR -2,

Sugam (ITR-4S) and ITR - V

10-Jun-15 Order No. 225/154/2015

Extension of due date from 31st July to 30th

August 201510-Jun-15 Order No. 225/154/2015 August 2015

22-Jun-15

Notification No. 49/2015

(original notification no.

41/2015 dated 15-04.-15)

ITR Form - agriculture income exceeding Rs.

5,000

2-Jul-15 Notification No. 58/2015 Black Money and Imposition of Tax Act, 2015

13-Jul-15 Notification No. 2/2015 Electronic Verification code (EVC)

29-Jul-15 Notification No. 61/2015 ITR Forms 3, 4, 5, 6, 7 notified

3CA Chintan Patel

Eligibility : ITR Form - 1ELIGIBLE :

Total income for the assessment year 2015-16 includes:-

(a) Income from Salary/ Pension; or

(b) Income from One House Property (excluding cases where loss is brought forward

from previous years); Set-off of current year loss is possible. or

(c) Income from Other Sources (excluding Winning from Lottery and Income from

Race Horses)

NOT ELIGIBLE :NOT ELIGIBLE :

Total income for the assessment year 2015-16 includes:-

(a) Income from more than one house property; or

(b) Income from Winnings from lottery or income from Race horses;

(c) Income under the head "Capital Gain or

(d) Agricultural income in excess of 5,000; or

(e) Income from Business or Profession; or

(f) Loss under the head 'Income from other sources' ;or

(g) Person claiming relief Under section 90 and/or 91; or

(h) Assets located outside India or resident having income from outside India.4CA Chintan Patel

Eligibility : ITR Form – 2AELIGIBLE :

Total income for the assessment year 2015-16 includes:-

(a) Income from Salary / Pension; or

(b) Income from House Property; or

(c) Income from Other Sources (Including Winning from Lottery and Income from

Race Horses)

NOT ELIGIBLE :

Total income for the assessment year 2015-16 includes:-Total income for the assessment year 2015-16 includes:-

(a) Income under the head "Capital Gain or

(b) Income from Business or Profession; or

(c) Person claiming relief Under section 90 and/or 91; or

(d) Assets located outside India or resident having income from outside India.

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Eligibility for Form 4S

� Includes:� Income generated as Salary or Pension

� Income generated from One House Property

� An individual or an HUF (Hindu Undivided Family) � An individual or an HUF (Hindu Undivided Family) whose income is computed under Section 44AD and 44AAE of the Income Tax Act 1961

� Income generated from other sources

� Not Include:

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Eligibility : ITR FormsITR Form 2 :

- Eligible : In addition to 2A, having income from Capital Gain

- Not Eigible : Total income for the assessment year 2015-16 includes Income

from Business or Profession;

ITR Form 3 :

To be used by an individual or HUF:

■Who is a partner in a firm; and■Who is a partner in a firm; and

■ If his income chargeable to tax under the head 'Profits or gains from

business or profession' does not include any income except income by way of

any interest, salary, bonus, commission or remuneration due to, or received

by him from such firm.

ITR Form 4 : Ind/HUF carrying on a proprietary business or profession

ITR Form 5 : Firm, LLP, AOP, BOI, arti. juri. person, coop. Soc. or local authority

ITR Form 6: Company other than claiming exemption u/s. 11

ITR Form 7: Return u/s. 139(4A / 4B/ 4C / 4D) (trust, political party, instit.,

college)7CA Chintan Patel

ITR - 1 ITR- 2 ITR- 2A ITR- 3 ITR- 4S ITR- 4

Who can file? Ind. Ind/HUF Ind/HUF Ind/HUF, Ind/HUF Ind/HUF

CG (No

Busi.) Partner

Presum

ptive

Busi. /

Prof.

Income Includes

Salary / Pension � � � � � �

Income from One House Property (excluding loss brought

forward from previous year) � � � � � �

Income from other sources (excluding winning from lottery and

income from race horses) � � � � � �

Condition of Income from Other sources - Not having any loss Yes No No No No NoExempt income (including agriculture income upto Rs. 5,000) � � � � � �

Income/ Loss from more than One House Property � � � � � �

Income chargeable to tax under the head 'capital gains' � � � � � �

FORM ELIGIBILITY

Income chargeable to tax under the head 'capital gains' � � � � � �

Agriculture income more than Rs. 5,000 � � � � � �

Income from winning from lottery and income from race

horses � � � � � �

Income from Business & Profession - Only as Partner � � � � � �

Income from Business & Profession - As Properitor (other than

presumptive) � � � � � �

Income from Profession u/s. 44 AA or income from agency

busi. / commission / brokerage � � � � � �

Business Income - Presumptive taxation U/s. 44AD, 44 AE � � � � � �

Loss under the head Income from Other Sources � � � � � �

Others

Assets or Income outside India � � � � � �

Relief or Deduction u/s. 90, 90A, 91 � � � � � �

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Changes in ITR Forms

New ProvisionsTo detect Black Money/ Non-compliance

Experience

1.Expenditure in CSR

Activities

2.Deduction under Sec.

32 AC

1.Aadhaar Number and

Passport Number

2.All Bank accounts

3.Unutilised amount in

1.Date of formation of HUF

2.Return filed pursuant to

order of CBDT u/s. 119

3.Details of change in

9CA Chintan Patel

32 AC

3.Alternate Minimum

Tax

4.Securities held by FIIs

5.Sale of units of

business trust

6.Concessional tax rate

in case of sale of

listed securities only

3.Unutilised amount in

capital gain account

4.Details about foreign

assets and foreign

income

5.SEBI Regi. number of

Foreign portfolio

investors / FII

6.Bifurecation of interest

paid to resident and

non-resident

3.Details of change in

partners / members

4.Details of interest rate and

remuneration to partners

5.Verification for compliance

with u/s.92CD

6.Income taxable in DTAA

7.Agriculture Income

8.Deemed let out HP

1. Aadhaar Number and Passport number All ITRs

Aadhaar number and passport number are required to be given in

new ITR forms (if assessee has obtained the same)

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Extract of form for AADHAAR ENROLMENT /

CORRECTION FORM

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2. Details of all bank accounts held by assessee All ITRs

Under new ITR form, an assessee is required to furnish details of all bank

accounts held by him in India at any time during the previous year. However

immunity has been provided to the taxpayer from furnishing details about the

bank accounts which have become dormant.

The 'dormant' account shall be those current and saving bank accounts which

have not been operational for more than 3 years.

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Additional Information :

A) IFSC Code of the Bank

B) Name of the Bank

C) Name of joint holders (if any) (withdrawn)

D) Account Number

E) Nature of the bank account, i.e., current account or saving

account

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Details of all Bank A/c’s (Excluding Dormant A/c’s) Held in

India at any time during the previous year

OLD ITR (Page No. 1)

NEW ITR (Page No. 2)

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3. Reporting of amount that has remained unutilized in capital

gains accountITR 3,4,5,6

If assessee is unable to roll over the investment in new capital asset within the

specified time period so as to avail of the exemptions under section 54, 54B,

etc., he can deposit the sum in capital gains account scheme.

In that case, exemption to be granted to assessee shall be aggregate of actual

investment in new capital asset and amount deposited in capital gains account

scheme before due date of filing of return of income.

The amount so deposited in the capital gains account scheme should be

utilized for investment in specified asset within specified time-limit, otherwise

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utilized for investment in specified asset within specified time-limit, otherwise

the unutilized amount shall be chargeable to tax in the previous year in which

the time-limit expires. The unutilized amount would be taxable as short-term

capital gain/long-term capital gain, depending upon the nature of original

capital gain.

In ITR forms, requisite details are required to be provided in respect of amount

so deposited in capital gains account scheme.

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Additional Information :

The details which are required to be provided if amount is deposited

in capital gains account scheme are as follows:

A) Previous year in which asset is transferred

B) Section under which exemption is claimed

C) Year in which new asset is acquired

D) Amount utilized out of capital gains account scheme to acquire

new asset

E) Amount that has remained unutilized in capital gains account

scheme or amount which is not used for making investment in

specified new asset

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Unutilised Capital gain deposited in capital gain account scheme

during the previous year.

OLD ITR (Page No.6)

NEW ITR (Page No.S4)

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Amount deemed to be short term capital gain u/s. 54B

OLD ITR (Page No.5)

NEW ITR (Page No.S3)

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4. Details about the foreign assets and foreign income ITR 2,3,4,5,6,7

The ITR forms seek more details about the foreign assets and income from any

source outside India. Schedule FA is substituted which requires assessee to

provide detailed information about such foreign assets and income. The

additional disclosures in the new ITR form shall be as under:

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Schedule FA Details of Foreign Assets and Income from any source outside India

ADetails of Foreign Bank Accounts held (including any beneficial interest) at any time during the previous year

Country Name

and Account

Status-

Owner/ Account

Peak

Balance Interest

Interest taxable and offered in this return

Details of Foreign Assets and income from any source outside India

Sl

No

Name

and

Code

and

Address

of the

Bank

Account

holder

name

Owner/

Beneficial

owner/

Beneficiary

Account

Number

Account

opening

date

During

the Year

(in

rupees)

accrued

in the

account Amount

Schedule

where

offered

Item

number

of

schedule

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

(i)

(ii)

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BDetails of Financial Interest in any Entity held (including any beneficial interest) at any time during the previous year

SlNo

Country Name and

Code

Nature of entity

Name and

Address of the Entity

Nature of Interest-Direct/

Beneficial owner/

Beneficiary

Date since held

Total Investme

nt (at cost) (in rupees)

Income accrued

from such

Interest

Nature of

Income

Income taxable and offered in this return

AmountSchedule

where offered

Item number

of schedule

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

(i)

(ii)

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CDetails of Immovable Property held (including any beneficial interest) at any time during the previous year

SlNo

Country Name

and Code

Address of the

Property

Ownership-

Direct/ Beneficial

owner/ Beneficiary

Date of acquisition

Total Investm-ent (at

cost) (in rupees)

Income derived from the property

Nature of

Income

Income taxable and offered in this return

AmountSchedule where offered

Item number

of schedule

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

(i)

(ii)

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DDetails of any other Capital Asset held (including any beneficial interest) at any time during the previous year

SlNo

Country Name and

Code

Nature of Asset

Ownership-Direct/

Beneficial owner/

Beneficiary

Date of acquisition

Total Investment (at cost) (in

rupees)

Income derived from the

asset

Nature of

Income

Income taxable and offered in this return

AmountSchedule

where offered

Item number

of schedule

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

(i)

(ii)

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EDetails of account(s) in which you have signing authority held (including any beneficial interest) at any time during the previous year and which has not been included in A to D above.

SlNo

Name of the

Institution in which

the account is

held

Address of the

Institution

Name of the

account holder

Account Number

Peak Balance/Investment during the year

(in rupees)

Whether income

accrued is taxable in your

hands?

If (7) is yes,

Income accrued

in the account

If (7) is yes, Income offered in this return

AmountSchedule

where offered

Item number

of schedule

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

(i)

(ii)

In case of a company / LLP / Firms if there are ‘n’ number of directors /

partners having signing authority, it is practically not possible for the

assessee to mention the details of all such companies / LLP / Firms where

he / she has signing authority in their return of Income.23CA Chintan Patel

FDetails of trusts, created under the laws of a country outside India, in which you are a trustee, beneficiary or settlor

SlNo

Country Name and

Code

Name and

address of the trust

Name and

address of

trustees

Name and

address of

Settlor

Name and address of

Beneficiaries

Date since

position held

Whether income derived

is taxable in your hands?

If (8) is yes,

Income derived from the

trust

If (8) is yes, Income offered in this return

AmountSchedule

where offered

Item number of schedule

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

(i)

(ii)

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GDetails of any other income derived from any source outside India which is not included in,- (i) items A to F above and, (ii) income under the head business or profession

SlNo

Country Name and

Code

Name and address of the person from

whom derived

Income derived

Nature of income

Whether taxable in your

hands?

If (6) is yes, Income offered in this return

AmountSchedule

where offered

Item number of schedule

(1) (2) (3) (4) (5) (6) (7) (8) (9)

(i)

(ii)

NOTE

Please refer to instructions for filling out this schedule. In case of an individual, not

being an Indian citizen, who is in India on a business, employment or student visa,

an asset acquired during any previous year in which he was non-resident is not

mandatory to be reported in this schedule if no income is derived from that asset

during the current previous year.

25CA Chintan Patel

Instructions to Schedule FA,-

This schedule is to be filled up by a resident assessee.

� Item G includes any other income which has been derived from any

source outside India and which has not been included in the items A to

F and under the head business of profession in the return.

� Beneficial owner in respect of an asset means an individual who has

provided, directly or indirectly, consideration for the asset and where

such asset is held for the immediate or future benefit, direct or

indirect, of himself or any other person.

� Beneficiary in respect of an asset means an individual who derives

benefit from the asset during the previous year and where the

consideration for such asset has been provided by any person other

than such beneficiary.

� (The above meaning of beneficial owner and beneficiary is same as

per explanation 4 and 5 of 139(1) inserted by Finance Act 2015 w.e.f.

01.04.2016)

(iii) (A) The peak balance in the bank account during the year is to be

filled up after converting the same into Indian currency.

(B) Financial interest would include, but would not be limited to,

any of the following:-

(1) if the resident assessee is the owner of record or holder of

legal title of any financial account, irrespective of whether he is the

beneficiary or not.

(2) if the owner of record or holder of title is one of the

following:-following:-

(i) an agent, nominee, attorney or a person acting in some other

capacity on behalf of the resident assessee with respect to the

entity.

(ii) a corporation in which the resident owns, directly or

indirectly, any share or voting power.

(iii) a partnership in which the resident assessee owns, directly

or indirectly, an interest in partnership profits or an interest in

partnership capital.

(iv) a trust of which the resident has beneficial or ownership

interest.

(v) any other entity in which the resident owns, directly or

indirectly, any voting power or equity interest or assets or interest

in profits.

- Capital Assets include financial assets which are not included in

part (B) but shall not include stock-in-trade and business assets

which are included in the Balance Sheet.

- For the purpose of this Schedule, the rate of exchange for the- For the purpose of this Schedule, the rate of exchange for the

calculation of the value in rupees of such asset situated outside

India shall be the telegraphic transfer buying rate of such

currency as on the date of peak balance in the bank account or

on the date of investment.

- Explanation: "telegraphic transfer buying rate", in relation to a

foreign currency, means the rate or rates of exchange adopted by

the State Bank of India constituted under the State Bank of

India Act, 1955 (23 of 1955), for buying such currency,

Black Money Bill - Few important points

� Tax on all foreign income will have to be paid at flat 30% without any exemption, deduction, set off or carry forward of losses..

� Total amount payable : 120% (30% tax + 90% penalty)

� Limited voluntary compliance window – 60% (30% tax + 30% penalty)

� Failure to file return of foreign income or assets will attract penalty of � Failure to file return of foreign income or assets will attract penalty of Rs. 10 lakh. Second and subsequent offence punishable with imprisonment of 3-10 years with fine upto Rs. 1 crore

� Undisclosed holding of less than Rs. 5 lakhs at any time during the year not reported out of oversight or ignorance – No pentlty/prosecution

� The tax liability on an overseas property would be computed on the basis of its current market price, not the price at which it was acquired.

29CA Chintan Patel

5. Foreign portfolio investors/Foreign Institutional investors ITR 5,6

Foreign Institutional Investor (FII) and Foreign Portfolio Investor (FPI) are

required to furnish their SEBI registration number in the new return Form.

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6. Bifurcation of interest paid to resident and non-resident ITR 5

New ITR 5 requires separate disclosure of interest paid:

(a) Outside India or paid in India to a Non Resident

(b) Paid in India or paid to a resident

All interest payments shall be bifurcated to indicate how much interest has

been paid to:

(a) The partners; and

(b) Others.

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Expenditure on CSR activities ITR 6

An Explanation was inserted in section 37(1) by Finance (No. 2) Act, 2014 to

clarify that any expenditure incurred by an assessee on the activities relating to

corporate social responsibility (CSR) referred to in section 135 of the

Companies Act, 2013 shall not be allowed to be deducted as same could not

be considered to be incurred for the purposes of the business or profession.

Thus, ITR 6 has been revised to provide for reporting of expenditure on CSR

activities if the same is debited to profit and loss account.

New

activities if the same is debited to profit and loss account.

32CA Chintan Patel

Deduction under section 32AC ITR 6

Any company engaged in business of manufacture or production of any

article or thing is entitled to claim allowance under Section 32AC for

investment in new plant and machinery.

Now a particular field is provided in new return form under 'Schedule

BP' for reporting of investment allowance under Section 32AC.

New

BP' for reporting of investment allowance under Section 32AC.

33CA Chintan Patel

Alternate Minimum Tax ITR 4,5,7

The existing provisions of section 115JC provides that alternate minimum tax

('AMT') shall be payable at the rate of 18.5% on adjusted total income.

Further, the adjusted total income was computed by including only profit

linked deductions (i.e., deductions claimed under Part C of Chapter VI-A and

deductions claimed under section 10AA) in total income.

However, with a view to include investment linked deduction in adjusted total

New

income, Section 115JC was amended by Finance (No.2) Act, 2014 to provide

that total income shall be increased by the deduction claimed under section

35AD for purpose of computation of adjusted total income.

Accordingly, the return forms have been revised to include Section 35AD

deduction for computation of adjusted total income.

34CA Chintan Patel

Computation of Alternate Minimum Tax payable under section

115JC

NEW ITR (Page No. S 15 )

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Securities held by FIIs ITR 3,4,5,6

Section 2(14) of the Act was amended by the Finance (No. 2) Act, 2014 to

provide that securities held by FIIs shall be deemed as 'Capital Assets'. The

amendment was made to end the controversy of categorization of income of

FIIs as business income or capital gains.

New

Consequential changes have been made in ITR forms in this regard.

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Sale of units of business trust ITR 3,4,5,6

The Finance (No. 2) Act, 2014 introduced a new Chapter XII-FA in the I-T Act to

provide for special provisions relating to business trust. The special taxation

regime contains provisions for taxability of income in the hands of business

trusts and the income distributed to its unit holders.

Consequential amendment is made to Section 10(38) to provide that long-term

capital gain arising from transfer of unit of a business trust on which securities

New

capital gain arising from transfer of unit of a business trust on which securities

transaction tax (STT) is paid shall be exempt from tax.

Similarly, Section 111A has been amended to provide that short-term capital

gain arising from transfer of unit of a business trust on which STT is paid shall be

chargeable to tax at reduced rate of 15%.

Necessary changes have been made in this regard in the ITR forms.

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- Concessional tax rate in case of sale of listed securities (other

than unit)

- Details of Short term / long term capital gain

Applicable ITR

As per the existing proviso to Section 112, if tax payable on long-term capital gains

arising on transfer of a capital asset, being listed securities or units or zero coupon

bonds, exceeds 10% per cent of the amount of capital gains before allowing for

indexation adjustment, then such excess shall be ignored.

The Finance (No. 2) Act, 2014 amended the said proviso to provide that the

concessional rate of tax of ten per cent shall be available only for long-term capital

gain arising from transfer of listed securities (other than unit) and zero coupon

bonds.

New

bonds.

Therefore, consequential amendment is made to ITR forms in accordance with the

amendment.

Now Long term capital gain from sale of MF is includable in this scheduled only if

sale is on or before 10-07-2014.

Also the break up of details of Capital Gain (ST/LT) in applicable tax rate

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Details of Short Term Capital Gain shown in Schedule Part B-TI i.e.

Computation of total income.

Details of Long Term Capital Gain shown in Schedule Part B-TI i.e.Details of Long Term Capital Gain shown in Schedule Part B-TI i.e.

Computation of total income.

Date of Formation of HUF ITR 2,4

HUF is required to report date of its formation in new ITR Form.

OLD ITR

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NEW ITR

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Return filed pursuant to order of CBDT under Section 119 ITR 3,4,5,6,7

For avoiding genuine hardship, by general or special order, the Board may

authorize any tax authority other than CIT (Appeals) to admit an application or

claim for any exemption, deduction, refund or any other relief after the expiry

of the period specified under the Act.

If assessee is filing return of income pursuant to an order of CBDT under

Section 119(2)(b), it shall tick the check-box [ under Section 119(2)(b)]

introduced in the new ITR forms.

Generally CBDT extends date of filing of return under Section 119 in cases of

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Generally CBDT extends date of filing of return under Section 119 in cases of

natural calamities or when taxpayer faces genuine hardship in certain

circumstances. Recently, the due date of filing of return for J&K taxpayers was

extended by the CBDT due to devastation caused by flood in J&K.

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Details of change in partners/members ITR 5

A new column has been inserted to require the assessee to furnish the details of

change in the partners/members of the firm/AOP/BOI, as the case may be,

during the previous year. Following details shall be furnished in the table newly

inserted in Part A - General:

Additional Information :

A) Name of the partner or member

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A) Name of the partner or member

B) Status as to whether admitted or retired

C) Date of admission or retirement

D) Percentage of share (if determinate)

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Details of interest rate and remuneration payable to

partners/membersITR 5

New ITR 5 requires disclosures of rate of interest and remuneration paid/payable

to the partners or members in firm/AOP/BOI or settlor/trustee/beneficiary in the

trust, as the case may be.

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Detail of Salary/remuneration paid to partners/members ITR 5

New ITR Forms requires separate disclosures of salary or remuneration paid or

payable to the partners during the year.

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Verification ITR 3,4,5,6,7

Where return is being furnished under section 92CD, assessee shall provide

an additional declaration that the critical assumptions specified in the

agreement have been satisfied and all the terms and conditions of the

agreement have been complied with.

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Details of income taxable under DTAA ITR 2,3,4,5,6

If capital gain or residuary income of assessee is taxable as per provisions of

the DTAA entered into between India and a foreign country, of which the

assessee is a resident.

Additional Information :

Following details shall be furnished in the return:

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A) Name of the Country and Code

B) Relevant Article of the DTAA

C) Rate of tax under DTAA (applicable in case of residuary income)

D) Confirmation if TRC has been obtained

E) Corresponding section of the Act which prescribe the rate of tax (applicable in case

of residuary income)

F) Amount of income

Further, the special tax rate on capital gain or residuary income and tax on such income

as per DTAA shall be disclosed separately in Schedule SI.46CA Chintan Patel

Agricultural income ITR 2,3,4,5,6

The Schedule EI in ITR forms requires assessee to provide following figures separately:

(a) Gross agricultural receipts

(b) Expenditure incurred on agriculture

(c) Unabsorbed agricultural loss of previous eight assessment years

(d) Net agricultural income for the year

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OLD

NEW

Reporting of deemed let-out house property ITR 2,3,4,5,6,7

If assessee owns more than one house, one house can be claimed by him as self-

occupied while all other houses shall be deemed to be let out.

Assessee shall be required to select a check-box in the ITR Form to indicate

whether a house owned by him shall be deemed to be let-out.

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E- Verification

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50CA Chintan Patel

Electronic Verification Code - Aadhaar Card Number

Process:

�While filing your tax return online, you need to register your

Aadhaar card number in ITR.

�The Income Tax Department’s system will then check with

UIDAI’s (Unique Identification Authority of India) database.

�The UIDAI’s system will send OTP (One Time Password) to

your registered mobile number.

�You then need to enter this OTP on Income Tax Department’s e-�You then need to enter this OTP on Income Tax Department’s e-

filing website.

�The Aadhaar OTP as EVC will be valid for 10 Minutes (or as

specified by UIDAI).

Notes : The above feature is an optional one.

If you want to send the physical copy of ITR V form,

you may do so. However , this option is not applicable to HUF

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STEPS TO LINK AADHAAR AND PAN

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VERIFICATION

Please note that any person making a false statement in the return or the

accompanying schedules shall be liable to be prosecuted under section

277 of the Income-tax Act, 1961 and on conviction be punishable under

that section with rigorous imprisonment and with fine.

False statement in verification, etc.

277. If a person makes a statement in any verification under this Act or under anyrule made thereunder, or delivers an account or statement which is false, and which herule made thereunder, or delivers an account or statement which is false, and which heeither knows or believes to be false, or does not believe to be true, he shall bepunishable,—(i) in a case where the amount of tax, which would have been evaded if thestatement or account had been accepted as true, exceeds twenty-five hundred thousandrupees,with rigorous imprisonment for a term which shall not be less than sixmonths but which may extend to seven years and with fine;(ii) in any other case, with rigorous imprisonment for a term which shall notbe less than three months but which may extend to two years and with fine.

Key Take Away

� Changes to detect black money and possible evasion

� It’s not only Computation of Tax !

� Resident v Non-resident� Resident v Non-resident

� Challenge to ensure complete accurate information

� Training to staff and articles

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CA Chintan N. Patel

Naresh J. Patel & Co.

Chartered Accountants

chintan@nareshco.com

M. No. 90999 21163

Connect me at

Facebook – cachintan.patelLinkedin – cnpatelcachintanpatel@googlegroup.com