CBDT has notified the new ITR forms for FY2017-18 (AY2018-19), including a one-page ITR Form-1 Sahaj. These forms incorporate the amendments made by the Finance Act 2017.
In a bid to help taxpayers file income tax returns (ITRs) for the last financial year, the Central Board of Direct Taxes (CBDT) has notified the new ITR forms for the Financial Year 2017-18 (Assessment Year 2018-19). These new tax return forms incorporate the amendments made by the Finance Act 2017.
It may be noted that for AY2017-18, a one-page simplified ITR Form-1 (Sahaj) was notified. For AY2018-19 too, a one-page simplified ITR Form-1 (Sahaj) has been notified, which can be filed by an individual who is a resident, has income up to Rs 50 lakh from salary, and has one house property.
There is, however, no change in the manner of filing of ITR forms compared to the last financial year as these are to be filed electronically. Where the income tax return is furnished in ITR Form-1 (Sahaj) or ITR-4 (Sugam), certain persons have an option to file the return in paper form also. They include individuals aged 80 years or more, or an individual or HUF having income less than Rs 5 lakh and who is not claiming any income tax refund.
Talking about the new ITR forms, CA Abhishek Soni, Founder, tax2win.in, says that like every year, this year also the Income Tax Department has made an attempt to simplify the tax filing process and reduce the compliance burden on the taxpayer. “Although the due date for filing the return for FY2017-18 is July 31, 2018, but still it is important to know well in advance that what has changed in the ITR forms compared to last year,” he says.
So, let’s begin with some changes in the one page ITR 1 (Sahaj) Form which was introduced last year:
1. Residential Status
Now only resident individuals having total income up to Rs 50 lakh only by the way of salary, one house property and other sources can file ITR 1. In other words, in comparison to last year, now non-residents and not ordinarily residents can’t use ITR 1.
2. Details of Income from Salary
Uptil last year only figure of Net Salary was needed to be reported under the head ‘Salaries’. But now complete breakup of salary would be required which is as under:
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.
3. Details of Income from House Property
Just like Income from Salaries, complete information will be required in case of income from House Property, which is as 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
4. Fees u/s 234F
The amount which will be levied under the newly-inserted section 234F (Fees for Delayed Filing of Return) will also be needed to be mentioned in ITR 1. As per this section, if a person who is required to file Income Tax Return (ITR) as per law but doesn’t file his return on time, then he is liable to a penalty as under:
i) If ITR is filed after 31st July 2018 but on or before 31st December 2018 – Rs 5,000
ii) If ITR is filed after 31st December 2018 – Rs 10,000
However, for individuals with Total Income of less than Rs 5,00,000, the penalty amount will be Rs 1,000.
5. Bank Details
Good news is that from AY2018-19, individual taxpayers are not required to furnish details of cash deposits for the specified period as they were required to provide in the ITR Forms for AY2017-18.
In other words, “the column seeking details of cash deposited during the period 09.11.2016 to 30.12.2016 has been dispensed with in ITR-1 for FY17-18. Owing to the note ban, this column was specifically introduced for the ITR Form for FY16-17,” says Soni.