This is that time of the year when you need to provide your income details and the taxes paid to the Income Tax Department for the Financial Year 2017-18. Filing of Income Tax Returns (ITR) can be done online as well as through physical mode. The deadline for doing so is July 31, 2018. As you gear up to file your returns, it is important to be aware of the changes in the ITR forms. The Central Board of Direct Taxes (CBDT) notified about seven new ITR forms for the assessment year 2018-19 in the beginning of the financial year. Also, in a big development the ‘gender’ section has been removed in the ITR forms and it no longer needs to be mentioned.
If you are a salaried person and are finding it difficult, don’t worry. Here is a quick and brief guide for you to ascertain which ITR form is applicable to you.
ITR-1 or SAHAJ
This form is applicable to salaried taxpayers with income up to Rs. 50 lakh from salary. In addition to it, one can also include income from one House Property as well as income from other sources, but excluding income earned from lottery and race horses.
You need to provide simple details about yourself – name, address, contact details, PAN and Aadhaar number. From this year onwards, you need to give your salary break-up along with other information about allowances, deductions, perquisites etc.
Individuals and Hindu Undivided families (HUFs), who have income from any sources except income from profits and gains of business or profession, including NRIs are eligible to file ITR2.
Individuals and Hindu Undivided families (HUFs), who have income under the head business or profession shall file either ITR Form-3 or ITR Form-4 (in presumptive income cases).
ITR Form 4
In case a taxpayer chooses presumptive taxation scheme under section 44AD, 44ADA or 44AE, he/she will have to use Form ITR-4 to file returns. This new form requires you to provide details about 14 business particulars like amount of secured/unsecured loans, advances, fixed assets, capital account, etc. unlike the last form in which only four particulars were required. The new I-T form also seeks information about the annual turnover that you have mentioned in your GST return.
This is done to curb the practice of reporting different turnovers in erstwhile sales tax return and income tax return. In case of a mismatch, you may get a notice from the Income Tax Department demanding an explanation.
A separate column has been provided for claiming capital gains exemptions under Sections 54, 54B, 54EC, 54EE, 54F, 54GB and 115F. The new forms also require you to mention the date of transfer of original capital asset which was missing in earlier ITR Forms.
You can download the new income tax returns form from the official website of the income tax department–www.incometaxindia.gov.in.
The writer is CEO, BankBazaar.com.