Mandatory Disclosure of Asset in IT Return from A/Y 2013-14
The new Income Tax form released by the Income Tax Department requires that all assets should be disclosed by the assessee in his/her Income Tax Return.
This applies to only those assesses who satisfies BOTH the following conditions :-
1. The taxpayer is earning Income from Proprietorship/Partnership business
2. The total Income of taxpayer is more than Rs 25 Lacs.
PROBABLE REASONS FOR INTRODUCTION OF MANDATORY DISCLOSURE
1. To keep a check on the ratio of Income earned and Asset acquired.
2. To widen the purview of wealth tax act.
POINTS TO BE NOTED
1. It will be required to be disclosed in Schedule AL of the return which have been inserted in ITR -3&4.
2. Only the assets which have not been disclosed in balance sheet are required to be disclosed.
3. Return will not include any asset with personal effect.
4. Only the Cost of Asset is to be disclosed.
5. The new Income tax form can be downloaded from http://incometaxindia.gov.in/download_all.asp
1. In many cases cost of the asset is unknown. e.g gift
2. In case of advance payment for purchase of Capital asset.