Friday, July 6, 2012

Spend more time on ‘changed’ return form

“Even a television set can be an asset,” explains Sonu Iyer, tax partner and national leader, human capital mobility services, Ernst & Young. “Unless there is a clear definition of what assets are, filing returns will be very tedious. Though this is a good practice but it lacks definition.”
But the worry doesn’t stop just here. “Contrary to the government’s intention of tracking black money, this will end up hurting the expat population the most,” said Iyer. “Expats who are considered residents will also need to report all their assets held abroad.”
You will be considered a resident if you have spent more than 182 days in India in 2011-12 or have spent more than 730 days in the last seven years in India. DECLARE CO-OWNERSHIP OF PROPERTY At the time of filing income from house property, you will need to mention if the property is coowned and in what percentage. So if you hold a property along with your spouse and both have an equal stake, you will need to mention that you own only 50% of the property. Accordingly, the rent you get will need to be in the same proportion. You will also need to mention the name and the permanent account number (PAN) of the co-owner. OTHER CHANGES Section 80G: Until last year, you could report an aggregate amount of donation entitled for a deduction under section 80G, but now the government is seeking details of all your philanthropic work. In addition to reporting the amount of donation, you will also have to mention the details of the donee, such as the name, address and PAN. Schedule TR: This schedule is meant for those who worked abroad for some time, paid tax in that country and are eligible for a tax relief in India. You will also need to mention the country code and the tax identification number in addition to the tax paid and total tax relief claimed.
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