Due Date Extended !!

Due date for Income Tax Return filing has been extended from 31st July 2019 to 31st August 2019 by the Income Tax Department

What are ITR forms?

 

ITR Forms means Income Tax Return forms. An ITR form is a prescribed form through which you communicate the details of your income earned, deduction claimed and taxes paid in a financial year to the Income Tax Department. It also allows you to carry forward the losses and claim refund from Income Tax Department.

There are different ITR forms prescribed for different categories of taxpayers. The selection will depend upon your Taxpayer status, Nature of income and Residential Status in India.


Whether ITR forms and Income Tax Return are interchangeable terms?

People tend to use ITR forms and ITR as interchangeable terms but they are not really so. ITR forms are the forms in which the income tax return is filed. Once your form is submitted successfully with the tax department, it can be called as Income Tax Return, and not at any stage before that.


From where I can download and know about ITR forms?

The pronouncement about release of ITR forms can be tracked from the official circulars issued by CBDT. You can download ITR forms for any Previous year from Income Tax India website.


What are the different Income Tax Return Forms for Income Tax Return Filing(ITR) by the Income Tax Department?

For AY 2018-19, the government has notified seven ITR forms. Let’s us discuss as to which form you need to file.

Types of ITR Forms

 

Return Form Brief Description
ITR - 1 This form is applicable to a RESIDENT INDIVIDUAL having income from Salary or One House Property (excluding brought forward loss) or Income from Other Sources (excluding lottery winnings, income from racehorses, income taxable under section 115BBDA or income referred in section 115BBDA). Having aggregate income maximum upto Rs 50 lakhs.
ITR - 2 It is applicable to an Individual being Resident, Non Resident or Not ordinarily Resident or Hindu Undivided Family who is not eligible to file Sahaj ITR-1 and whose income is NOT chargeable to income-tax under the head “Profits or Gains of Business or Profession”. Individuals having total income in excess of Rs 50 lakhs either from salary , capital gains or accruing from more than one House Property, agriculture income, other sources income from race horses etc can file this form.
ITR - 3 It is applicable to an Individual or Hindu Undivided Family having chargeable income under the head Profits and Gains of Business or Profession including profits from partnership businesses.
ITR - 4 Also known as SUGAM. It is applicable to those who have opted for the presumptive taxation scheme as per section  section 44AD/ 44ADA/44AE.
ITR - 5 This Form can be used by a person being a firm, LLP, AOP, BOI, artificial juridical person referred to in section 2(31)(vii), co-operative society and local authority. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or section 139(4E) or section 139(4F) shall not use this form (i.e., trusts, political parties, institutions, colleges, investment fund etc.) or having  Agricultural income in excess of Rs 5,000.
ITR - 6 This form is applicable to a company, excluding a company claiming exemption u/s 11 (Exemption u/s 11 is claimed by charitable/religious trust).
ITR - 7 It is applicable to a persons including companies who are required to furnish return under section 139(4A) or 139(4B) or 139(4C) or139(4D) or section 139(4E) or section 139(4F) (i.e., trusts, political parties, institutions, colleges, investment fund, etc.).
ITR - V It is the acknowledgement of filing the return of income.

Every year new updated ITR forms are released by CBDT (Central Board of Direct Taxes) for duly furnishing your ITR of the relevant Financial Year with the tax department.


What are the changes in the new ITR forms for AY 2018-19?

There are some significant changes which have been brought by CBDT in ITR forms for Assessment Year 2018-19. The number of ITR forms have been kept intact but, the filing criterias are majorly rearranged.

Also provision to file paper ITR in case of ITR 1 and ITR 4 has been introduced to ease out the process for

  • Individuals aged 80 years or above any time during the year
  • Individuals and HUF having taxable income below Rs 5 lakhs
  • Admitting no claim for Refund

Let’s discuss the changes you need to know about the new ITR forms, specially ITR forms for individuals in detail-


ITR 1

Who can file ITR 1-(Sahaj)?

Sahaj being one of the most simplified one page form, can be filed for FY 2017-18 by

  • Resident and Ordinarily Resident Individual can only opt to declare income through this form having, if any Income from salary or pension
  • Income from other sources (except for income from sources like Lottery winnings, maintaining race horses etc.)
  • Having Income from 1 House Property whether let out or self occupied (except carrying forward losses)
  • Exempt income without any limits except Agriculture Income i.e. upto 5,000 agriculture income can be shown.
  • But, Total income shall not exceed Rs 50 lakhs.

Who cannot file ITR 1(Sahaj)?

  • Non Resident
  • Not Ordinarily Resident
  • Person having business or profession
  • Anyone having income exceeding Rs 50 lakhs
  • If you own more than one house property
  • Income arising from Winnings from Lottery or Race Horses, Gambling or speculation income
  • An assessee having Capital Gains
  • Resident having financial interest in assets located outside India, which includes any signing authority for accounts held outside India
  • Person claiming relief u/s 90/90A/91 for taxes paid in foreign country.
  • Loss under income from other sources
  • One who desires to carry forward or adjust loss under income from house property
  • Agricultural income exceeding Rs. 5,000

Check out the changes in the New ITR 1 Form compared to last year


There are total of 5 amendments introduced for this AY 2018-19 in ITR 1 SAHAJ form. Let us analyse each one in detail.

Form ITR 1 Sahaj

1. Applicability of the ITR 1 Form :

The first and most significant change has been bought by restricting the usage of ITR 1 form.

For the Assessment Year 2017-18 the description of form stated as under

“For Individuals having Income from Salaries, one house property, other sources (interest etc.) and having total income upto Rs.50 Lakhs”

Which has now for the Assessment Year 2018-19 been substituted by words

“For Individuals being Residents other than not ordinarily resident having Income from Salaries, one house property, other sources (interest etc.) and having total income upto Rs.50 Lakhs”

Implication :

The change is remarkable as after the introduction of new description following categories of persons will not be allowed to file ITR through

ITR 1
  • Non Residents
  • Not Ordinarily Residents

2. PART B Gross Total Income :

Part B has been changed. Now, while filing ITR 1, the resident individual is required to submit the break up of salary and house property.That means , now they will have to give complete details like deductions u/s 16, not exempt allowances, value of perquisites and profit in lieu of salary.
Previously, there was no requirement to give detailed information of salary and house property income.

For the Assessment Year 2017-18 the description of form is stated as under
B1 Income from Salary / Pension
B2 Income From One House Property
B3 Income From Other Sources
B4 Gross Total income
Which has now for the Assessment Year 2018-19 been substituted by words:
B1 i Salary (excluding all allowances, perquisites and profits in lieu of salary)

ii Allowances not exempt

iii Value of perquisites

iv Profits in lieu of salary

v Deduction u/s 16

vi Total income chargeable under the head salaries
B2
If let out house property, furnish details below

i Gross rent received/ receivable/ letable value

ii Tax paid to local authorities

iii Annual Value (i-ii)

iv 30% of Annual Value

v Interest payable on borrowed capital

vi Total Income charged under the head house property
B3
Income from other sources
B4
Gross Total Income

Implication :
More detailed comprehension of salary and house property components are required by return filers. This change has lead to increase in information disclosure for common tax filers who used to self file ITR 1 till date.


3. Computation Of Tax Payable

A material unavoidable fee provision have been attached in the amended computation of Tax Payable details in column D10 in the name of FEE u/s 234F. This will increase the cash outflow from all those who are in habit of filing after due date of 31st July. The newly inserted provision will come into effect from FY 2017-18 i.e. the taxfiler in current year are needed to be more vigilant.

Implication :
Implication of section 234F from AY 2018-19 will have traverse effects, which can better be understood with the help of this table :

Any one filing ITR after due date will now have automated addition of fee u/s 234F as per the new Income Tax Forms prescribed by CBDT.


4. Part E - Other Informations

This change can be called one of the obvious procedural changes. ITR forms issued for AY 2017-18 had an column

Cash deposited during 09.11.2016 to 30.12.2016 (if aggregate cash deposits during the period ? Rs.2 lakh)

adding to the existing details sought for bank accounts, which now stands omitted in new form.

Implication :
The column was added temporarily for seeking the information about banking transactions made by an assessee during the Demonetisation period. Since, the effect of demonetisation on fiscal transactions concluded in previous year itself, ITR forms for the current Assessment Year 2018-19 witness withdrawal of such column.


5. Change in TDS schedule

With the changes brought in ITR form 1 this year, we can surely say that Income Tax Department has become more vigilant and is focusing on procuring all the relevant information. TDS schedule has been amended as under to provide increased details

For the Assessment Year 2017-18 the description of form stated as under

Schedule TDS - Details of TDS/TCS [As per Form 16/16A/27D issued by Deductor(s)/Employer(s)/Collector(s)]

Which has now for the Assessment Year 2018-19 been substituted by words

Schedule-TDS Details of TDS/TCS [As per Form 16/16A/27D issued or Form 26QC furnished by Deductor(s)/ Employer(s)/ Collector(s)]

Also, following additional changes have been given effect to in TDS Schedule

ITR Form 2017 ITR Form 2018
Col (1) TAN of deductor Col (1) TAN of deductor/
PAN of the Tenant
Col (7) Amount claimed in the hands of spouse if section 5A is applicable DELETED

Implication :
The changes in details required to be furnished in ITR are in harmony to the amendments made effective via Budget 2017. Through the Finance Act 2017, an obligation was levied upon the tenant u/s 194IB , to pay the landlord consideration for rent after netting of TDS.In other words, TDS @ 5% shall be deductible by an individual , if he pays rental amount of Rs 50,000 or more per month. The tenant needs to deduct TDS and file in 26QC, for filing the TDS deducted and details related thereto, quoting PAN shall suffice.


6. Addition to Verification details

To the surprise of users, ITR forms this year have observed an addition to the verification details needed by the Income Tax Department. This will result in requiring more info to be quoted like your return filing status and TRP details.

For the Assessment Year 2017-18 the description of form stated as under

I, _________ son/ daughter of ________solemnly declare that to the best of my knowledge and belief, the information given in the return is correct and complete and in accordance with the provisions of the Income-tax Act, 1961.
Date: __/__/____
 

Which has now for the Assessment Year 2018-19 been substituted by words

I, ________ son/ daughter of __________ solemnly declare that to the best of my knowledge and belief, the information given in the return is correct and complete and is in accordance with the provisions of the Income-tax Act, 1961. I further declare that I am making this return in my capacity as ___________ and I am also competent to make this return and verify it. I am holding permanent account number _______________ (if allotted).
Date: __/__/____ Sign:___________________
 

If the return has been prepared by a Tax Return Preparer (TRP) give further details below

  • Identification No. of TRP
  • Name of TRP
  • Countersignature of TRP
  • If TRP is entitled for any reimbursement from the Government, amount thereof
Credits for the above images - https://www.incometaxindiaefiling.gov.in/home
 

Implication :
Previously the changes and increased details were required to be quoted while submitting your acknowledgement to CPC Bengaluru. But, with these new changes being effective you would be requiring to mention all such information while filing taxes itself.


ITR 2


Who can file ITR 2?

  • Non Residents
  • Individual or HUF
  • Income accruing from Salaries
  • Multiple House Properties
  • Earning profits from Capital Gains
  • Disclose income from other sources including winnings from lotteries, race horses etc
  • The one willing to set off or carry forward losses
  • Items subject to special rate taxation like Balances from PF, income from patent etc
  • If any income is received from business trust or investment fund u/s 115UA or UB
  • To disclose interest in foreign assets and claim relief on taxes paid abroad
  • Where income during the Financial Year 2017-18 exceeds Rs 50 lakhs
  • If your Agriculture Income exceeds Rs. 5,000

Who cannot file ITR 2?

  • Individual or HUF accruing income from business or profession
  • Partner of a partnership firm having income from partnership

Changes brought for FY 2017-18; AY 2018-19 in ITR Form 2

Following enlisted key changes have been introduced in FY 2017-18 by way of amendment in ITR 2 Form,

  • As per the changes brought into ITR 1, Non Residents having income from salary have to now furnish ITR 2 for instead of ITR 1. This will result in furnishing greater information by the concerned tax filers.
  • Just like last time, the requirement of furnishing details of any one foreign bank account by NRI for the purpose of credit of refund has been continued. However, change has been made in the way details are asked as per the latest ITR pdfs issued
  • As per the new tax forms this year, Individuals and HUFs having income from Business and Profession will no more be able to file ITR 2, relating to which some consequential amendments have been made in ITR form 2, such as
    1. Part B - TI of ITR 2 has deleted the column “Profits and Gains from Business or Profession”.
    2. Schedule-IF (Income from Firm) and Schedule-BP have also been done away with. Which means partners of a firm too shall now either file ITR 3 or ITR 4, depending upon the income.
    3. In Schedule AL, “Interest held in the assets of a firm or association of persons (AOP) as a partner or member thereof” has been removed.
    4. A like change in ITR 2 have also been incorporated relating to TDS schedule, which has added the option to quote PAN of Tenant, and furnishing of TDS details as per Form 26QC/QB.

ITR 3

Who can file ITR 3?

  • Individual or HUF having income from business or profession
  • Partners receiving income from Partnership firm
  • Multiple house properties
  • Willing to carry forward unabsorbed depreciation and losses
  • Looking forward to Set off AMT credit u/s 115JC
  • If you have capital gains
  • Having agricultural income in excess of Rs 5,000
  • All those cases who are eligible to file ITR 4 but are not desirous of offering income to taxed as presumptive income

Who cannot file ITR 3?

  • Companies
  • AOP, BOI
  • Individual who want to show income under presumptive head

Key changes introduced for Financial Year 2017-18; AY 2018-19 in form ITR 3 are

  • GST details, if any needs to be furnished since this FY, by any person carrying business or profession. Schedule PL of the form has consequently been amended. Further “Part A - OI” also amended with respect to GST details.
  • Partners in firm will be required to submit ITR 3 now onwards
  • Individuals and HUFs earning “Income from Profits and Gains from Business or Profession” will be required to file either ITR 3 or ITR 4 (for presumptive income)
  • Maximum depreciation has been restricted to 40% in all depreciation schedules.

ITR 4 - SUGAM

Who can file ITR 4 (Sugam)?

  • Person having income from salary
  • Earning profits from business or profession
  • Income from other sources except Race Horses, speculation gains etc

Who cannot file ITR 4?

  • Anyone who maintains books of accounts and willing to set off expenses with income earned.
  • Income earned through capital gains.
  • If you own more than one house property whether let out or self occupied
  • A person having Agricultural income in excess of Rs 5,000.

Changes:

  • Now a person filing ITR 4, i.e. presumptive income @ minimum 6% if payments are received through banking channels and 8% in case received in cash, needs to mention its GSTIN. Mentioning this will entitle sync between the disclosures of turnover details furnished by a person in income tax and under GST. Any discrepancy will be taken note of and clarification will be sought by the income tax department.
  • The first change given effect to in ITR 4 relates to Changes in details of salary and house property. Now breakup of these components will required by the Income Tax Department as par with ITR 1
  • For bringing into force the matching concept of Direct tax (Income Tax) and Indirect tax (GST) following column has been added to ITR 4

     

    INFORMATION REGARDING TURNOVER/GROSS RECEIPT REPORTED FOR GST
    E9 GSTR No.
    E10 Turnover/Gross receipt as per the GST return
  • Apart from details already specified, following additional disclosures will now be required to made in ITR 4 relating to FINANCIAL PARTICULARS OF THE BUSINESS

     

    For the Assessment Year 2017-18 the description of form stated as under
    E9 Amount of Total Sundry Debtors
    E10 Amount of Total Sundry Creditors
    E11 Amount of Total Stock-in-trade
    E12 Amount of the Cash Balance

     

    Which has now for the Assessment Year 2018-19 been substituted by words
    E11 Partners/ Members own capital
    E12 Secured loans
    E13 Unsecured loans
    E14 Advances
    E15 Sundry creditors
    E16 Other liabilities
    E17 Total capital and liabilities (E11+E12+E13+E14+E15+E16)
    E18 Fixed assets
    E19 Inventories
    E20 Sundry debtors
    E21 Balance with banks
    E22 Cash-in-hand
    E23 Loans and advances
    E24 Other assets

     

    A note has been added to the amended part of ITR 4, which states only the fields marked in Bold above are compulsory to be disclosed, all others being just informative for the time being. In nutshell though the department has prescribed list of additional details but mandatory information to be furnished has been kept unchanged, in comparison to previous years.

  • Additionally there are three notable changes made in Schedule 2 of TDS for AY 2018-19, which can be enumerated as under
    1. The title of Schedule clearly says details as per Form 26QC i.e. for details pertaining to TDS deducted on rent paid by an individual shall be reported.
    2. In the field where, previously only TAN of deductor was admissible clear additions have been made to specify PAN of deductor. Because, as per the amendments introduced by Finance Act 2017, any individual being tenant, paying monthly rent of Rs 50,000 or more shall deduct TDS @ 5% and can deposit the same corresponding to his PAN. In this case, there is no requirement to obtain TAN.
    3. The last column in the schedule stating Income of spouse has been altered to provide detailed information now

  • For the Assessment Year 2017-18 the description of form stated as under
    Amount claimed in the hands of spouse as per section 5A or any other person as per rule 37BA(2)
    Which has now for the Assessment Year 2018-19 been substituted by words
    Amount claimed in the hands of spouse as per section 5A or any other person as per rule 37BA(2) :
    - Income
    - TDS
    - PAN of spouse/ Other person

    Even the tax deducted column has been subdivided, to enlist the amount deducted in respect of self and Spouse or other person.


ITR 5

Who can file ITR 5?

  • LLP (Limited Liability Partnerships)
  • AOP (Association of Persons)
  • BOI (Body of Individuals)
  • Artificial Juridical Persons
  • Co-operative Society
  • Local Authority

Who cannot file ITR 5?

  • Individual
  • HUF
  • Company

ITR 6

Who can file ITR 6?

Companies other than section 11 companies


Who cannot file ITR 6?

Section 11 companies being companies formed with charitable or religious purpose


CBDT has levied increased reporting liabilities on companies in the new forms for FY 2017-18 ; AY 2018-19. Every company making disclosure of income through ITR 6 this year will now have to furnish these details

  • Amendment in Schedule relating to MAT (Minimum Alternate Tax)
  • Reporting as per IND AS (Indian Accounting Standards) wherever applicable.
  • Maximum depreciation has been restricted to 40% in all depreciation schedules
  • Schedule 10A, DDTP has been removed
  • In case, company is not liable to get its accounts audited as per section 44AB, then it shall disclose the following details :
    1. All transactions whether incurred with a registered or unregistered supplier of GST,

      Total amount of Expenditure
      Expenditure in respect of entities registered under GST
         A. Relating to goods or registered under GST services exempt from GST
         B. Relating to entities falling under composition scheme
         C. Relating to other registered entities
         D. Total payment to registered entities
      Expenditure relating to entities not registered under GST
    2. Any expenses made or money received in foreign currency towards revenue and capital account shall be separately stated.
  • Unlisted companies are mandated to report particulars of beneficial owners having 10% or more voting power, at any time during the relevant financial year 2017-18. Following details of beneficial owners needs to be furnished

    PAN of the Beneficial Holder
    Name
    Address
    % of shares held
  • Disclosure of CSR (Corporate Social Responsibility) expenditures is to be made. As per section 135 of the Companies Act 2013, prescribed class of companies shall contribute minimum specified quantum of profits to social causes as described. Now Income Tax department has made the disclosure of such expenses to be mentioned in ITR filed.

ITR 7

Who can file ITR 7?

All persons including companies who are required to furnish ITR u/s

  • 139(4A) - Person receiving income from trust or other religious or charitable purposes, if without claiming exemption u/s 11 or 12 the income exceeds maximum amount not chargeable to tax
  • 139(4B) - Political party if the income exceeds maximum amount not chargeable to tax without claiming exemption u/s 13A
  • 139(4C) - Return to be filed by following if without claiming exemption u/s 10 the income exceeds maximum amount not chargeable to tax
    1. Scientific Research association
    2. News Agency
    3. Association / Institution referred to in section 10(23A) and 10(23B)
    4. Trade Union
    5. Educational or Medical Institutions etc. (if aggregate annual receipt does not exceed Rs 1 Crore)
  • 139(4D) - Any university, College, or institution (having any income or loss)

Who cannot file ITR 7?

Any other person from those specified above cannot report using ITR 7 Form.


ITR 7 which relates to income disclosure for trusts, political parties etc has witnessed some changes in the new forms introduced for this year by CBDT. Some of these changes can be summarised as

  • Details of author, trustee, founder, manager etc are now mandatorily required to be disclosed. Previous to FY 2017-18 compliance with these requirements was optional. The details shall include
    - PAN
    - Aadhaar
    - Name of such person
    - Address
  • Some Amendments has been made in “Details of registration or approval”
  • If the Trust undergoes any change in its objects as specified under section 12A then it shall furnish following particulars relating to the same, namely,
    Date of Change
    Whether new registration application made
    Whether the fresh application for registration granted
    Date of new registration

Some common changes applicable to ITR forms for FY 2017-18; AY 2018-19

  • FEE u/s 234F introduced in all relevant ITR forms.
  • 26QC and PAN of deductor is required to be furnished under the TDS schedule.
  • Cash Deposited details during Demonetisation period has been done away with.
  • Just like last time, NRI can furnish details of any one foreign bank account for the purpose of credit of refund. However, change has been made in the way details are asked as per the latest ITR pdfs issued by department.
  • GST details are required to be furnished for business ITRs.
  • Capital Gains chargeable to special rate shall now be disclosed in some more specified cases.
  • If you have received any property as gift or for inadequate consideration the same needs to be separately disclosed in ITR forms for this FY, except in cases of ITR 1 and ITR 4.
  • ITR 3, 5, and 6 have additional new column inserted from FY 2017-18 to enable filers claim depreciation arising as a result of business arrangements like merger, amalgamation etc.

Acknowledgement

One and only remarkable change which has been made to Acknowledgement form (ITR V) is deletion of column A5. Which was related to mandatory field having disclosure of Gender of return filer. This move by CBDT is supported as, since FY 2015-16 Slab Tax Rates have been stabilized by the tax department for both men and women. Now, no separate tax rates or basic exemption limit prevails in the country for female ITR filers.

There is no change in the manner of filing of ITR Forms as compared to last year. All these ITR Forms are to be filed electronically. However, where return is furnished in ITR Form-1 (Sahaj) or ITR-4 (Sugam), the following persons have an option to file return in paper form:

Acknowledgement


Frequently Asked Questions

Q- Why is Form ITR-4S not appearing in the dropdown option for filing income tax returns. What should I do?

ITR-4S is discontinued from the A.Y 2017-18. Now ITR-4 can be filed for presumptive income.


Q- Which ITR should I file for agricultural income only?

Ans. ITR 1 is filed for agriculture income upto rupees 5000 And ITR form 2 is filed for agriculture income exceeding rupees 5000


Q- Which ITR form should I fill for income form, salary, PF withdrawal, or commission from insurance?

Ans. ITR form 1 is filled for income from salary, pf withdrawal and commission from insurance is shown in other source income


Q- Which ITR form should be filed with TDS and TCS?

Ans. ITR forms are depend upon the income of the assessee not on the TDS and TCS deducted.


Q- I am salaried person. I also deal in share trading. Which ITR should I file?

Ans. ITR 1 is used for salaried persons. But in case assessee is dealing in shares trading which may result in capital gains then ITR 2 is filed.


Q- What should I write in the capacity column of the ITR 1 form?

Ans. If ITR is filed by individual then fill the column by individual and ITR is filed by HUF then fill column by karta.


Q- Where do you declare profession tax on the ITR-1 form?

Ans. Professional tax is declare in deductions u/s 16 in ITR 1


Q- Which ITR form should I use for dual income from salary and consultancy charges under section 194J?

Ans. ITR 4 is filed if person having income from salary and professional


Q- In which month do ITR forms become available?

Ans. ITR forms are available throughout the year and every year updated ITR forms are released by 31st may every year.


Q- ITR: Which ITR I have to fill for 2 incomes (commissions -194H and Salary)?

Ans. ITR 1 is available for salary income and other sources of income.


Q- Which ITR form should you use if you have a rental income from two houses?

Ans. ITR form 2 is filled for income from multiple house property.


CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. 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.