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  1. Income Tax alert: ITR forms for this fiscal to seek more info – What businesses and salaried people should know

Income Tax alert: ITR forms for this fiscal to seek more info – What businesses and salaried people should know

Income tax returns for the current fiscal are designed to extract more information, especially from businesses, as they are required to report their business transactions besides income.

By: | New Delhi | Published: April 7, 2018 3:08 AM
Income Tax, Income Tax returns, fiscal, taxpayers, GST Income tax returns for the current fiscal are designed to extract more information, especially from businesses, as they are required to report their business transactions besides income.

Income tax returns for the current fiscal are designed to extract more information, especially from businesses, as they are required to report their business transactions besides income. Additionally, individual salaried taxpayers would now have to furnish their salary break-up in the ITR-1 form. The new forms were notified by the Central Board of Direct Taxes, the policy-making body of the income tax (I-T) department, on Thursday. The last date for filing I-T returns for FY18 is July 31, 2018. For businesses that have opted for presumptive taxation scheme, tax return forms (ITR-3 or ITR-4) would now ask for GST identification number (GSTIN) as well as details of transactions under the GST. The IT department could independently verify such details with corresponding GST returns, experts said. “There are more than 25 key changes in current year ITR forms in comparison to last year. Some of these changes clearly suggest that the focus of new ITR forms is to get more information from unlisted companies, trusts and taxpayers who have opted for the presumptive taxation scheme,” Naveen Wadhwa, DGM of Taxmann, said. Although, changes have been made in the ITR-1 form, extra details asked for are typically contained in Form 16 provided by employers.

For instance, a taxpayer would have to provide details of allowances that are not exempt, value of perquisites, profit in lieu of salary and deductions claimed under Section 16. “The ITR-1 also seeks additional information on salary income and house property income, unlike the previous financial year, where only the total amounts were required to be furnished. The newly notified ITR-2 form is no longer applicable for individuals who have profits and gains from any business or profession (unlike last financial year where details of partnership firm could be reported),” Amarpal Chadha, tax partner & India mobility leader, EY, said. Non-resident Indians are now required to file ITR-2, which is more detailed compared to ITR-1 that was applicable to them till last year. However, NRIs can now furnish details of a foreign bank account to claim refund. Till last year, it was mandatory for them to provide bank account details held in India. Further, all the seven ITRs are to be filed electronically except for some category of taxpayers, the CBDT said in a statement. However, the CBDT said, individual taxpayers who turned 80 years or more during the previous year or an individual or HUF whose income does not exceed `5 lakh and who has not claimed any refund can file ITRs in the paper form, using the ITR-1 or ITR-4. The CBDT also said the requirement of furnishing details of cash deposit made during a specified period (in the wake of the note ban of 2016) as provided in ITR form for the Assessment Year 2017-18 has been “done away with” this time.

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