They have brought out the ‘disclosure’ principle for individuals, even though other corporate governance policies mandatorily require companies to all aspects to all stake holders.The Finance Bill of this budget recommends that ‘every individual who has an asset outside India has to file the tax return mandatorily irrespective of income’, which will come into effect from tax year 2011-12. In Amarpal’s words, “income is not the only criteria to file an income tax return in India.”
Though the Finance bill is yet to be approved by the Government, tax authorities have already brought out the tax return forms with the above mentioned requirements. These forms are to be notified including a separate schedule wherein the details of foreign assets are to be mentioned.
It also requires the details of bank accounts, financial interest in any entity along with the details of immovable property as well.
Amarpal says, “It is very interesting to note that the wordings used in the Finance Bill or in the tax return 'any asset' is wide enough to cover all assets held by an individual outside India. It should also be noted that they require specific information like peak balance in bank account during the year.”
If you have a separate income from any of your house property (which can be jointly owned as well); then you will have to mention your relevant share in the property along with the name and PAN of your co-owner.
If you are also claiming tax return for charity and donations, you have to grant the details like the name, permanent address and account details of the donor.
If you are alleging tax relief under the clause of double taxation avoidance agreement for the taxes paid in foreign country, then details like the country name, income and taxes paid in that country , tax identification number used in that country, need to be provided.
This scheme is obligatory for those also who have income of more than 10 lakh and for those who are residing in India but have assets abroad.
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