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All cash pay­ments of over Rs 2 lakh for pay­ing loans and credit card bills dur­ing the 50-day pe­riod post demonetisation will have to be dis­closed in the new one-page In­come Tax re­turn form. The tax depart­ment a few days back no­ti­fied new In­come Tax Re­turn (ITR) forms for fil­ing of re­turns for the As­sess­ment Year 2017-18 (fi­nan­cial year 2016-17). Be­sides pro­vid­ing for declar­ing in­come, ex­emp­tion claimed and tax paid, the forms have a new col­umn pro­vid­ing for dec­la­ra­tion for any de­posit of over Rs 2 lakh in bank ac­counts made dur­ing Novem­ber 9 and De­cem­ber 30, 2016 af­ter the old 500 and 1,000 ru­pee notes were de­mon­e­tised. This col­umn is also to be used for declar­ing cash pay­ments in ex­cess of Rs 2 lakh for re­pay­ment of any loan or set­tle­ment of credit card bills dur­ing this 50-day pe­riod, a se­nior of­fi­cial said. "The col­umn is an at­tempt to match the cash de­posits made post demonetisation with the an­nual in­come," he said. While all credit cards are linked to per­ma­nent ac­count num­ber (PAN) of the holder, al­most all loans by sched­uled banks are also pro­vided on fur­nish­ing of PAN. The tax depart­ment will col­late the data it has of cash pay­ments made in ex­cess of Rs 2 lakh with the re­turns filed. "We want to see if the in­come pro­file matches with the cash pay­ments made," he said. The move comes amid con­cerns of un­ac­counted cash or black money be­ing used to set­tle bills af­ter credit cards were used to make heavy pur­chases. It could also be that black money could have been used to re­pay loans. Post-demonetisation, the govern­ment had pro­vided a 50-day win­dow be­gin­ning Novem­ber 9, 2016 to de­posit the junked notes in bank ac­counts. For those with un­ac­counted cash, it gave them one last op­por­tu­nity to come clean by de­posit­ing 50 per cent of it as tax and park­ing another 25 per cent in a ze­roin­t­er­est bear­ing de­posit for four years. The changes made in ITR are an at­tempt to catch tax evaders, the of­fi­cial said. Rev­enue Sec­re­tary Has­mukh Ad­hia had ear­lier stated that the new col­umn of cash de­posits made dur­ing Novem­ber 9, 2016 and De­cem­ber 30, 2016 was a one-time fea­ture in the ITR and would not be there in the ITR from next year on­wards. The ITR, he had said, would evolve or change ev­ery year de­pend­ing on the need. While com­ing out with new ITRs, the CBDT had also ra­tio­nalised them and cut down the num­ber of forms to seven from ear­lier nine. While all tax­pay­ers will have to now manda­to­rily link Aad­haar with their PAN cards, ITR1 (Sa­haj) form has been short­ened from 7 page to 1 page to en­able fil­ing of re­turns by peo­ple with in­come up to Rs 50 lakh by July 31. ITR2 is to be filed by in­di­vid­u­als and HUFs who do not have in­come from busi­ness or pro­fes­sion and ITR3 is filed by in­di­vid­u­als and HUFs hav­ing in­come from a pro­pri­etary busi­ness or pro­fes­sion. Also ITR 2 and ITR 3 also have a Sched­ule AL which re­quires as­sessees to de­clare their as­sets and li­a­bil­i­ties at the end of the fis­cal. ITR4 (Sugam) is filed by those in­di­vid­u­als who have opted for in­come cal­cu­la­tion un­der pre­sump­tive in­come from busi­ness and pro­fes­sion. Only res­i­dent In­di­ans will have to quote Aad­haar for fil­ing ITR as the I-T depart­ment has made it manda­tory for them for as­sess­ment year 2017-18. The govern­ment, as per the Fi­nance Act 2017, has made it a must for tax­pay­ers to quote Aad­haar or en­rol­ment ID for fil­ing of in­come tax re­turns (ITR). Also, one has to have Aad­haar to ap­ply for per­ma­nent ac­count num­ber with ef­fect from July 1, 2017. As per the Aad­haar (Tar­geted De­liv­ery of Fi­nan­cial and Other Sub­si­dies, Ben­e­fits and Ser­vices) Act, 2016, only a res­i­dent in­di­vid­ual is en­ti­tled to ob­tain Aad­haar. Res­i­dent as per the said Act means an in­di­vid­ual who has resided in In­dia for a pe­riod or pe­ri­ods amount­ing in all to 182 days or more in the 12 months im­me­di­ately pre­ced­ing the date of ap­pli­ca­tion for the en­rol­ment. The In­come-Tax Act de­fines a res­i­dent as a per­son who has stayed equal to or more than 182 days of cur­rent fi­nan­cial year in In­dia or if he stayed in In­dia for 60 days or more in pre­vi­ous fi­nan­cial year, among oth­ers. Peo­ple who do not sat­isfy these cri­te­ria are con­sid­ered as NRIs (non-res­i­dent In­di­ans). There are more than 25 crore PAN card hold­ers in the coun­try while Aad­haar has been is­sued to 111 crore peo­ple.

Rev­enue Sec­re­tary Has­mukh Ad­hia

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