New Income Tax Return (ITR) forms have been notified by the government for the financial year 2017-18 (Assessment Year: 2018-19). While the department has retained the one-page format of Sahaj, which was introduced in the assessment Year 2017-18, a slew of other changes have been introduced with an intention to know more about your income. Following are a few of the changes in the new ITR forms you should know about before filing the return for financial year 2017-18.
1) You now need to give a break-up of your salary including various deductions. For example: you need to give more information under the head “salary from income” that include allowances that are not exempt, value of perquisites, profit in lieu of salary and deductions claimed under section 16.
2) You need to give more details under income from property including gross rent received, tax paid to local authorities, annual value, interest payable on borrowed capital. Your chartered accountant must have asked you all this information while filing an ITR. To make things easier and transparent, the department has now included them on the form, too.
3) If you have income under the head business or profession then you need to file either ITR-3 or ITR-4. Assesses who fill ITR-4, those who have presumptive income from business and profession, need to give GST registration number in the form. This has been added in the form with the implementation of GST last year.
4) You also have to quote gross receipts as per GST returns in the ITR form, as the income-tax department may use the information to see the harmony in the direct and indirect taxes paid by the assessee.
5) There has been a good news for non-resident Indians (NRIs). Earlier, they could only share details of bank accounts that are held in India. In the new form they can claim credit or refunds even in their foreign account.
NRIs need to fill ITR-2 now, which was earlier restricted to residents only.
6) The relief has been given to taxpayers of 80 years or more whose income does not exceed Rs 5 lakh. They can file ITR in the paper form.
7) After demonetisation a section was introduced to disclose cash deposits made immediately after demonetisation. The section has been removed from the new form.
CBDT spokesperson Surabhi Ahluwalia been quoted as saying, “Further, the parts relating to salary and house property have been rationalised and furnishing of basic details of salary (as available in Form 16) and income from house property have been mandated.”