Income tax returns
Tax payers line up to submit their income tax returns on the last day of filing in New Delhi July 31, 2013 (Representational image)Reuters file

To enable more categories of tax payers to file their returns online, the income tax department activated three more income tax returns (ITRs) Thursday. This follows two ITRs activated April 2 for individuals, Hindu Undivided Families (HUFs) and partnership firms having income from presumptive business.

The new ones activated Thursday are:

  • ITR-2 for individuals and HUFs not having income from business or profession,
  • ITR-2A for individuals and HUFs not having income from business or profession and capital gains and who do not hold foreign assets and 
  • ITR-3 which is meant for individuals or HUFs being partners in firms and not carrying out business or profession under any proprietorship.

Last Saturday, the income tax department had activated ITR-1 (Sahaj) meant for individuals having income from salary and interest, and ITR 4S (Sugam) for individuals, HUFs and partnership firms having income from presumptive business.

The new forms are part of an exercise to make tax payers earning above Rs. 50 lakh per annum and owning assets such as land, building, yachts, aircraft or bullion to disclose these in their income tax returns for the assessment year 2016-2017.

"The Central Board of Direct Taxes has introduced a new reporting column in the ITR-2 and ITR-2A for disclosing assets and liabilities at the end of the year. Individuals and entities coming under this income bracket will also have to mention the total cost of such assets," the BusinessLine reported. 

The income tax department intends to activate four more ITRs shortly, PTI quoted an official as saying Thursday. These four forms are ITR-4, ITR-5, ITR-6, ITR-7, in addition to an acknowledgement form called the ITR-V. 

The Central Board of Direct Taxes ( CBDT) had notified the new forms March 30 and ITRs can be filed till the stipulated deadline of July 31, the agency added. 

People with an income of more than Rs. 50 lakh per annum and who own luxury items like yacht, aircraft or valuable jewellery, under the new ITR filing scheme, will have to disclose these expensive assets with the IT department in the new ITRs.