With the extension in due date for ITR filing for AY 2018-19, some simultaneous changes have also been made both in the online as well offline ITR forms.
The Income Tax Department had some time back amended the ITR (Income Tax Return) forms for AY 2018-19 tax return filing, which was earlier due by 31 July 2018 without any penalty. However, the due date for tax filing got extended to August 31 for the convenience of taxpayers. With this extension, some simultaneous changes have also been made both in the online as well offline ITR forms.
For example, there have been some changes in the income tax return forms like Sec 234F (Date extension for late filing fee), Sec 234A (interest on delay in filing of tax return), among others, you will now have to download the new forms from the income tax e-filing website for filing tax return. Likewise in case of online ITR-1 Form, if you have saved a draft and didn’t file it before 31st July this year, then that will no longer be available to you. You will have to fill a new ITR-1 Form.
It should also be noted that the ITR-1 Form Sahaj, which is the most commonly used tax filing form and is applicable for salaried employees, has undergone significant changes and, therefore, shall require some extra efforts to be filled in. Unlike earlier years, from this year, this form is applicable only for resident individuals.
The new ITR-1 Form, which is applicable for resident individuals having total income up to Rs 50 lakh from salary and 1 house property, as well as income from other sources (like interest etc), can broadly be structured into 6 sections:
Structure of ITR-1 Sahaj Form
Part A- General Information
Part B- Gross Total Income
Part C-Deductions and taxable income
Part D-Computation of Tax Payable
Part E- Other Information
Details of Advance Tax and Self-Assessment Tax payments and TDS
One of the key changes applicable to the new form is that it requires salaried employees with more detailed and specific information/ declaration. For instance, “there is a requirement to furnish a break-up of salary income such as details about the value of perquisites, non- exempt allowance and so on. Until last year, salary details as per Form 16 were required to be filled and there was no requirement to disclose the breakup of salary in ITR forms. Similarly, there is a requirement to provide detail breakup of income from house property, interest paid on housing loan etc,” says Puja Gupta, Tax Consultant, TASS Advisors LLP..
In view of the same, it is very important for employees to ensure that they have proper documentation such as rent receipts, tax saving proofs etc basis which tax has been deducted by the employer. Any mismatch in the tax declaration provided to the employer/ Form 16 viz a viz the ITR form shall trigger verification/ questioning by the tax officials.
“With the introduction of new forms, it seems that the tax authorities will try to verify and check any bogus HRA claims, LTA exemptions and other deductions claimed by the employees. Therefore, one needs to be careful while filling new ITR forms as the information submitted shall have long-term consequences,” adds Gupta.
How to fill salary details in ITR-1 Sahaj Form
Taxpayers are required to fill salary details in the B1 item of Part B of the ITR-1 Sahaj Form. This includes:
i) Salary (excluding all allowances, perquisites and profit in lieu of salary)
ii) Allowances not exempt
iii) Value of perquisites
iv) Profit in lieu of salary
v) Deductions u/s 16
vi) Income chargeable under the head ‘Salaries’ (i+ii+iii+iv-v)
You are, thus, required to fill the details of your salary or pension, allowances not exempt, profit in lieu of salary, value of perquisites, deductions u/s 16, among others, as given in Form 16. However, if Form 16 doesn’t contain correct income and there is more to be reported, then report the same in the form after making the correct computation. In case you have changed your job during the year and have worked with more than one employer, then furnish the details showing the aggregate amount under different heads from various employers.
Apart from showing your Salary details, you are also required to show details of your House Property in the B2 item of Part B, which include:
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) Income chargeable under the head ‘House Property’ (iii – iv – v)
Thus, show the details of gross rent receipts, taxes paid to local authorities like municipal taxes etc, as well as interest paid or payable on borrowed capital. Also, tick the applicable box as whether your house property is ‘Self Occupied’ or ‘Let Out’. In case ‘income from house property’ is a loss and you have income under any other head of income, you will not be entitled to set off such loss, to the extent the amount of the loss exceeds Rs 2 lakh against income under the other head.
You are also required to report ‘Income from other sources‘ in the B3 item of Part B. However, enter details only if you have ‘income from other sources’. If you have suffered a loss, then please use the ITR-2 Form.
Add items B1, B2 and B3. If a loss, then mark the negative sign within the brackets at left. This loss, however, can’t be carried forward to the next year using this ITR form. Use the ITR-2 form for claiming carry forward of losses.