NEW DELHI: People with annual income of over Rs 50 lakh will have to disclose the acquisition cost of all the assets like land, building and jewellery in the Income Tax return forms for assessment year 2016-17.
The luxury items to be disclosed will also include utensils, apparels and furniture studded with precious stones and ornaments made of gold, silver, platinum or any other precious metal or alloy.
“The amount in respect of assets to be reported will be the cost price of such assets to the assessee,” the Central Board of Direct Taxes (CBDT) has said while issuing instructions on the new ITR forms.
In case the precious items had been received as gifts, the assessee will have to declare the cost of acquisition by the previous owner along with value additions.
“In case where the cost at which the asset was acquired by the previous owner is not ascertainable and no wealth-tax return was filed in respect of such asset, the value may be estimated at the circle rate or bullion rate, as the case may be, on the date of acquisition by the assessee as increased by cost of improvement, if any, or March 31, 2016,” the instructions said.
The assessee will also have to declare whether such items and their value were disclosed at the time of filing wealth tax returns earlier.
The tax department had in April notified the new ITR forms for assessment year 2016-17 and introduced a fresh reporting column in ITR-1, ITR-2 and 2A called ‘Asset and Liability at the end of the year’ which is applicable in cases where the total income exceeds Rs 50 lakh. –PTI