Taxpayers! Here’s some good news. You are no longer required to provide details of your foreign trips or your expenditure there from 2018 to the income-tax department. However, you will still have to provide your passport number, if available, in Forms ITR-2 and ITR-2A.
This is the time of the year when people run around to file their income tax returns. This year, however, you could take things easy as the deadline has been extended to August 31. The controversial and cumbersome provisions for mandatory disclosure of expenditure on foreign trips and bank balances have been dropped. New provisions have also been introduced, but in a much simpler form.
The forms that were notified last month were withdrawn given widespread opposition for stringent disclosure norms. People opposed the idea of sharing information about foreign trips and bank balances. The new forms have done away with detailed disclosures but they still ask for information on your foreign trips and bank account albeit indirectly.
Many more changes have been made in the ITR forms. Here is a guide to help you understand these changes:
New form ITR 2A
Considering that many taxpayers have more than one house property but do not have capital gains, the finance ministry has proposed a new Form – ITR-2A – to simplify the process. The form is for an individual or HUF with two house properties but no capital gains, income from business/profession or foreign asset/foreign income.
The good news is that Form ITR-2 and the new Form ITR-2A will not be more than three pages, and information will be captured in the schedules if applicable.