DISCLOSE ALL THE BANK ACCOUNTS WHILE FILING INCOME TAX RETURN

Query 1]

As per revised guidelines information about all the accounts other than inoperative is to be furnished in ITR forms. Kindly guide as to how to report in the following cases:

1.      A joint account with son & first name being of son (student). Amount remitted to this account by father, is for son's food and day to day recurring expenses for academics. Father is filing his IT return regularly.

2.      Husband & wife are having joint account with husband's name being first name. Both are filing IT returns regularly. Interest incomes pertaining to wife deposits are also credited to this account.

3.      Wife is not having any account with her name as first name. She is having only joint account with husband with second name as joint account holder.

How to show the details of accounts when they are in joint while filing individual IT returns? [d_pande1@yahoo.in]

Opinion:

“Today, it takes more brains and effort to make out the income-tax form than it does to make the income”- Alfred E. Neuman

It may be getting relevant in India too. Amidst lot of chaos & confusions, few of the income tax return (ITR) forms for the A.Y. 2015-16 are finally notified by the Government. The good news is that the deadline for filing the ITR this year is extended from 31^st July to 31^st August. Extension would help taxpayer understand and fill the new form properly. As far as new income tax return forms are concerned, taxpayers should take care of following changes & additional disclosure requirements:

1.      Disclosure of bank account numbers of all operational account is required in the new ITR. The disclosure is not required in respect of dormant account (3 years without transactions). No closing balance is required now, only IFS code, account number of all the current/savings account is required to be reported. Even account closed during the year is required to be disclosed in the ITR.

2.      Passport Number is also required to be furnished. The details of the foreign visits are not required to be furnished now.

3.      Presently, individuals/HUFs with income from more than one house property and capital gains & without any income from business/profession are required to file return in Form ITR-2. A new ITR 2A form is proposed which can be filed by an individual/HUF who has income from more than one house property, but does not have any income from capital gains, income from business/ profession, foreign assets/foreign income.

4.      Earlier ITR-1 could not be filed by an individual having exempt income exceeding Rs. 5,000/-. But now, new ITR-1 can be filed even if exempt income (other than agricultural income) exceeds Rs. 5,000/-.

With above generalized coverage, the point-wise replies in respect of all the issues raised by you are as under:

1.      Account details would be required to be given while filing the income tax return of the son even if he is just a student and you are remitting the amount in that account for his day to day expenses. The same account details would be required to be disclosed while filing your income tax return as well even if all the withdrawals transactions in the said account are related to your son.

2.      The account would be required to be disclosed in the return of both husband & wife both. Interest income need to be incorporated in the income tax return of wife alone as it is on the amount deposited by her.

3.      Even if the wife don’t have any account with her name as the primary holder, even then the discloser would be required in her return also.

Query 2]

I have made Rs. 10 lakh FD for 5 year in Feb 2009. It matured in Feb 2014. The bank deducted TDS every year. On filling e-return for AY 2014-15, I showed the whole interest amount in Income from other sources and claim the TDS deducted for respective years. Now I have received Order u/s 143(1) showing Tax Payable. The tax payable is sum total of TDS of previous AY leaving the current AY. 26AS shows all previous TDS. I have not declared TDS deducted in previous ITR. How should I resolve this? Kindly help. [gkumar1946@rediffmail.com]

Opinion:

It appears that you have offered the interest on FDR for taxation at the time of maturity only & nothing is offered for taxation at the time of accrual on yearly basis.

The credit towards TDS is available in the year in which the related income is offered for taxation [Section 199 of the Income Tax Act-1961]. As 26AS of FY 2013-14 was not reflecting full TDS amount, your income tax return was processed without giving entire credit towards TDS claimed. You may now file the rectification application u/s 154 mentioning the fact of TDS availability in the 26AS of the earlier years & also by filling the schedule-TDS2 wherein you are advised to carefully mention the financial year & unclaimed TDS amount brought forward.

[As a general practice, taxpayers are advised to offer the income on FDR on accrual basis in view of CBDT circular. Further, taxpayers are advised to mention the amount of TDS in schedule-TDS2 - carried forward column in case assessee wants to claim the credit in subsequent years].

Query 3]

My income is mainly from interest from bank deposits and is below taxable limit. Interest is about Rs. 1.50 Lacs. I don't have PAN. Can I submit Form 15G to Bank for non-deduction of tax?  Bank said that you must submit PAN details to get interest without TDS (as mentioned in Form 15G), and can't write "No PAN". Is the bank's view valid? Please advise how to get interest without TDS. [Pawan Kumar-pawannathani21@yahoo.com’

Opinion:

Form No. 15G & 15H are the most frequently used declaration form which is required to receive interest without deduction of tax at source (TDS) in respect of interest payment. However, disclosure of PAN on the form is a pre-condition for non deduction of TDS. Form No. 15G/H will not be serve the purpose of non deduction of tax at source if PAN is not mentioned thereon. Non furnishing of the PAN to the payer of interest would attract TDS @ 20%.

[The author is a practicing Chartered Accountant from Nagpur. Readers may send their direct tax related queries at SSRPN & Co, 10, Laxmi Vyankatesh Apartment, C.A. Road, Telephone Exch. Square, Nagpur-440008 or email it at nareshjakhotia@ssrpn.com]