Income Tax Return form: There are many changes you need to know
April, 13th 2018
The new format of income tax return forms, introduced for the fiscal 2018-19, will require you to fill up whether you own a house and whether it is self-occupied or given out for rent. The Central Board of Direct Taxes (CBDT) for filing returns for the financial year 2017-18 have introduced some new clauses for both house owners and tenants which were not mandatory till the last fiscal.
The ITR forms have incorporated the changes made by the Finance Act, 2017 in the Income tax Act, 1961.
If you own a house, you have to declare whether it is self-occupied or rented. If the property was let-out last year, you have to give the break-up details of gross rent received, tax paid to local authorities and the yearly value of property. The annual value will be the gross rent paid minus taxes deducted.
Besides, a standard deduction of 30 per cent will be applicable on the annual value. You also have to mention the amount of annual interest paid on borrowed home loan. A column will also ask you to fill up the annual value after reducing the amount of standard deduction and interest on home loan from it.
Tax experts feel the new ITR forms shows Government's intent to combat tax evasion and taxpayers fill up their tax returns without any lapses. Also, these steps are being taken so that government can use information technology to effectively assess tax returns and plug lapses.
Besides these, there are new forms for various categories of taxpayers - Sahaj (ITR1) , Form ITR-2, Form ITR-3, Form Sugam -ITR-4, Form ITR-5, Form ITR-6, Form ITR-7, and Form ITR-V.
ITR-1 or Sahaj is to be filled by the salaried class individuals, those who have one house property, other sources (interest etc.) and whose income is up to Rs 50 lakh.
A taxpayer has to fill in details in separate fields such as allowances not exempt, profit in lieu of salary, among others.
Form ITR 1 will cover General Information, Gross tTotal Income, Deductions and Taxable Total Income, Computation of Tax Payable, Other Information, Schedule IT - Detail of Advance Tax and Self Assessment Tax payments, Schedule TDS - Detail of TDS/TCS
Form ITR-2 is for individuals and Hindu Undivided Families who have income under any head other than business or profession.
Form ITR-3 is for Individuals and Hindu Undivided Family (HUFs) having income from business or profession.
Form ITR 4 (Sugam) is for the presumptive tax payers, for those who can declare income as a specific percentage of their gross receipts or turnover and pay taxes. These taxpayers have to furnish GST related details.
ITR for non-resident Indians will require individuals to furnish details of any one foreign bank account, which can be used for the purpose of credit of refund. The new forms are available on www.incometaxindia.gov.in.