Company-sponsored foreign trip may not need disclosure in revised ITR

Income tax payers are likely to be exempt from furnishing details of company-sponsored foreign trips and bank accounts below a minimum threshold balance as well as dormant accounts in the revised Income Tax Return (ITR) form being finalised.

The simplified form, which is being brought after an earlier version faced opposition for cumbersome disclosure norms, is however likely to retain the requirement of disclosing foreign bank accounts as was the case in the past, official sources said.

"The tax department feels that declaration of company- sponsored foreign trips could be kept out of disclosure," an official source said.

As regards personal travel, the official said that there could be an expenditure cap beyond which the trip would need to be disclosed in the revised ITR.

"Only those incurring expenditure higher than a specified cap will have to fill in the annexure provided in the forms," the official added.

"Disclosure with regard to foreign bank accounts would stay as otherwise it would defeat the purpose of the black money legislation," the official added.

Parliament last week passed the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill, 2015, which seeks to unearth unaccounted wealth stashed abroad.

The tax department is likely to come out with the revised form by the month end, the official added.

The final decision on simplification of the ITR forms (ITR-1 and ITR-2) would be taken by Finance Minister Arun Jaitley before the end of the month, the official said.

The salaried individuals and those persons who do not have business/professional income are required to file income tax returns in either ITR-1 or ITR-2 by July 31.

Following the controversy over the new ITR forms which sought details of bank accounts and foreign visits, the revenue department announced putting them on hold. Jaitley promised to come out with "far more simplified" forms.