How to go about filing ncome Tax returns for the financial year 2011-12.

The Central Board of Direct Taxes has notified the new income tax return forms and these can be downloaded from http://www.incometaxindia.gov.in/download_all.asp


Till last year, the Income Tax Returns can be filed with the Income Tax Department in any of the following ways

 by furnishing the return in a paper form;

 by furnishing the return electronically under digital signature;

 by transmitting the data in the return, electronically and thereafter submitting the verification of the return;

 by furnishing a bar-coded return.

However, from the current year, electronic filing is mandatory, if any of the following conditions are satisfied:

 Total Income of an individual or HUF exceeds Rs. 10 Lakhs.

 Owns an asset (including financial interest in any entity) located outside India, which include:

o Holding a bank account outside India.

o Financial Interest in any entity outside India.

o Immovable property situated outside India.

 Signing authority in any account located outside India.

To reiterate, if you satisfy any of the above mentioned conditions, you have only the following options for filing the income tax returns

 by furnishing the return electronically under digital signature;

 by transmitting the data in the return, electronically and thereafter submitting the verification of the return;

The Government had proposed compulsory reporting requirement for assets held abroad in Income Tax returns, from the tax year 2011-12. The overseas assets to be disclosed include:

 Bank accounts – indicating location of the country, name and address of the bank, the account holder’s name and the peak balance maintained in the account during the year;

 Financial interests in an entity - mentioning the country name and code, name and address, and nature of the entity where the interest is held and the total investment;

 Immovable property /other asset –country name and code, location of property/asset and total investment;

 Details of accounts with signing authority that have not been included in the above together with the name and address of the institution where the account is held, the account holder’s name and the peak balance maintained/investment made during the year;

 Individuals claiming foreign tax relief to mention overseas location’s tax identification number along with details of income earned, taxes paid and relief claimed.

You may also refer to the following:

http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=NOTF&schT=&csId=c36dd448-cf58-4e63-bbdf-fa0fa48896a7&NtN=&yr=ALL&sec=&sch=&title=Taxmann - Direct Tax Laws

http://economictimes.indiatimes.com/personal-finance/tax-savers/tax-news/understanding-the-new-income-tax-forms-kuldip-kumar-pwc-india/articleshow/12709829.cms