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How Filing of ITR 1 is Different This Year

Updated on: 23 Nov, 2023 01:22 AM

Amendments are brought to ITR forms every year. For the Financial Year 2017-18 there are 7 changes majorly incorporated in ITR 1 – SAHAJ. The changes have resulted in seeking more detailed information from the tax filers and increased transparency. Before starting your return for the year, let us understand How filing of ITR 1 is different this year

Since A.Y 2018-19 the users of ITR 1 have been restricted to Residents and Ordinarily Residents. Resultantly, Non Residents will not be entitled to furnish their ITR through one page simple form now onwards. Non Residents can alternatively opt for ITR 2. For more details on which ITR form to choose refer our guide.

Breakup of Salary required

Previously users were required to quote just one figure relating to Income under the head Salary but after the changes being introduced a detailed breakup of salary as under would necessitate

  • Salary (excluding all allowances, perquisites and profits in lieu of salary)
  • Allowances not exempt
  • Value of perquisites
  • Profits in lieu of salary
  • Deduction u/s 16
  • Total income chargeable under the head salaries

Although, all these amounts can be prima facie picked from your Form 16 issued by the employer. Additional information seeked might still result as an increased inconvenience to tax filers.

Detailed disclosure to House Property

For the preceding years users inculcated an habit of one liner disclosure pertaining to Income From House Property. Which has now been substituted in case of let out property by detailed disclosures such as

  • Gross rent received/ receivable/ letable value
  • Tax paid to local authorities
  • Annual Value
  • 30% of Annual Value
  • Interest payable on borrowed capital
  • Total Income charged under the head house property

The amended details now required might be a hardship for a common user. As possibly they might not find the terminologies user friendly.

Fee u/s 234F

Computation of tax payable will now have an added column stating fee u/s 234F. This section will have implications from the financial year 2017-18 and will aim at timely filing of ITR. The fee u/s 234F will attract as under

? ITR filed after 31st July 2018 5,000
? ITR filed after 31st Dec 2018 10,000
? If your Total Income is upto Rs 5 lakhs 1,000

Deposits during demonetization

Last year ITRs witnessed a new field for the first time, pertaining to disclosure of cash deposited during the demonetisation period. Since the impact of demonetisation was from 09.11.2016 to 30.12.2016, no more information required in IT for FY 2017-18.

Details as per section 194 IB

Changes have been introduced in the tax schedule in harmony with section 194IB. As per Finance Act 2017 any tenant making rental payment of Rs 50,000 or more per month shall pay such rent net of 5% TDS in hands of his landlord. Such TDS deducted shall be submitted through form 26QC. Filing of this form will not require tenant to obtain TAN rather his PAN would be sufficient in this case.

Additional Verification details

Person filing ITR will now be required to disclose his status i.e. filing in capacity as INDIVIDUAL in case of ITR 1 together with quoting his PAN. Return if filed through TRP, the details of same needs to be quoted.

The changes have though majorly been procedural, it will add to some extra time now required by users to file ITR 1. To get best assistance with filing your tax return Contact us Now!!

CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.