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New tax forms to expand net

The move is to clamp down on shell companies and to check routing of black money
The directors in both the listed and unlisted companies will be required to file their returns in ITR-2

Our Special Correspondent   |   New Delhi   |   Published 05.04.19, 07:30 PM

The income-tax department has barred directors as well as those who have invested in unlisted companies from filing ITR forms Sahaj and Sugam in a bid to clamp down on shell companies and to check routing of black money. .

According to the new tax return forms for assessment year 2019-20 notified by the I-T department, the directors in both the listed and unlisted companies will be required to file their returns in ITR-2, in which they will have to disclose details of their Director Identification Number (DIN), Permanent Account Number (PAN), equity holding along with the names of the companies.

Similarly, investors in unlisted equity shares, too, will have to give details, such as acquisition cost, sale consideration, date of purchase/sale of holding of such shares at any time during the previous year.

ITR-1, or Sahaj, can now only be filed by resident individuals having a total income of up to Rs 50 lakh, from salaries, one house property, other sources (interest), and agricultural income up to Rs 5,000.

Sugam, or ITR-4, will be filed by individuals, HUFs and firms with a total income of up to Rs 50 lakh under the presumptive income scheme from business and profession, provided the assessee is neither a director nor have invested in any unlisted company.

This stipulation, according to tax experts, is aimed at tightening the noose on unlisted companies appointing dummy directors and using shell companies to round trip black money.

In ITR-6, which is filed by the companies, the forms have a separate column for start-ups. Unlisted companies filing ITR-6, too, will have to provide details of investors, their residential status in India, PAN, date of allotment, number of shares held, issue price per share and the amount invested. 

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