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Non-residents, especially expatriates working in India, may now be required to share more information on taxes with the Income Tax Department.
This is because the I-T department has, for the financial year 2017-18 (assessment year 2018-19), stipulated that non-residents will have to necessarily file their returns in either ITR2 or ITR 3, which require elaborate details.
Non-residents cannot avail the one page simplified ITR Form 1 (Sahaj) that was allowed to be used last financial year (2016-17), say tax experts.
Naveen Wadhwa, DGM, Taxmann.com, said form ITR-1 has been withdrawn for non-resident taxpayers. They have to file the return either in ITR 2 or ITR 3. The compliance will be burdensome for non-residents as returns in these forms can be filed only through income tax department’s utilities (excel or Java) or third party software, he said.
“Non-resident taxpayers will definitely require the assistance of tax experts to file the return for current year,” Wadhwa said.
Aseem Chawla, Partner, Phoenix Legal, a law firm, said that non-residents are now obliged to file ITR-2 which suggests more disclosures. The ITR-2 is more detailed than ITR-1.
The new ITR-2 form requires reporting of at least one foreign bank account with IBAN and SWIFT details, Chawla added.
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