Key Changes in ITR1 and ITR2 forms for A.Y. 2012-13

With efiling facility becoming a success, the government of India has introduced some positive changes this year. A major change is that online filing of ITR has been made mandatory for people with more than Rs. 10 lakh of total income and/or those who hold a bank account or any asset abroad. For the Assessment Year (A.Y.) 2012-13, the income tax return (ITR) forms for salaried individuals and those with income from house property will see some changes as against the last year’s ITR forms. These changes are either new schedules that have been added or updates that have been made in the existing schedules.
Schedule 80G: Till AY 2011-12, assessees were supposed to furnish only the amount of deduction claimed under section 80G, which is tax benefit derived from making donations. From A.Y. 2012-13, assessees are required to provide the name and address of donee, PAN of donee, amount of donation made and the amount eligible for deduction under section 80G. This change is an addition of a new schedule in ITR1 and ITR 2, while an update of existing schedule in ITR4.
Schedule TR : While an assessee had to declare only the Tax relief claimed till last year, s/he will now have to furnish additional details. These include the name and code of the country visited, income earned, tax paid and tax identification number in the respective country under section 90, section 90A or Section 91. This change is an addition of a new schedule to ITR 2 and ITR4.
Schedule FA: Resident assessees having assets (including financial Interest in any entity) or having signing authority in any bank account located outside India, have to e-file their returns. They are required to furnish the details of foreign bank account, financial interest in any entity, details of immovable property or other assets located outside India. This change is an addition of a new schedule to ITR 2 and ITR4.
Schedule HP: Information related to the percentage of share of the assessee in the co-owned property is mandatory. In case the property is co-owned, then the assessee needs to furnish the name of the co-owner, PAN and percentage of share of the other co-owner in the property. However the details of PAN and percentage of share of other co-owner is optional. This change is an update of an existing schedule in ITR 2 and ITR4.
Those who became residents of India and failed to report global income in the past 16 years would be under the scanner of Income Tax Department. Till now, the tax man was allowed to go back to up to 6 years only. The intent of the government is to detect the undisclosed income through foreign assets by ensuring that they are reported in the ITR.