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Friday, May 3, 2013

I-T returns may require disclosure of all assets

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IN A bid to counter tax evasion, the finance ministry is contemplating making it mandatory for individuals and hindu undivided families (HUFs) to report Indian assets and liabilities in income-tax (I-T) return forms.

 

The government is considering to introduce a new income-tax return form that will require individuals to disclose all their assets and liabilities, rather than just annual income from various sources, a senior finance ministry official said.

The official further said that the decision will be taken in the next two days.

Last year, reporting of assets and liabilities was made mandatory for individuals with foreign assets.

The official said the intention is mainly to get information about those high net worth individuals (HNIs) who have not been declaring all their assets to avoid paying wealth tax.

In the financial year 2012-13, wealth tax collections stood at Rs 866 crore ­ much lower than the budget estimate of Rs 1,244 crore.

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