The Central Board of Direct Taxes (CBDT) has notified the Income-tax Return (ITR) Forms applicable for the Assessment Year 2018-19 vide Notification No. 16/2018-Income Tax Dated- 03/04/2018. The new forms incorporate the changes made by the Finance Act, 2017 in the Income-tax Act, 1961. It is apparent that the new ITR Forms have shifted the entire onus on the taxpayers to prove their claim for deductions, expenses or exemptions refer table 2.
(1) ITR Forms Applicable for Assessment Year 2018-19
| Individual and HUF | ||||
| Nature of income | ITR 1* (Sahaj) | ITR
2 |
ITR
3 |
ITR
4 |
| Income from salary/pension (for ordinarily resident person) | ✓ | ✓ | ✓ | ✓ |
| Income from salary/pension (for not ordinarily resident and non-resident person) | ✓ | ✓ | ✓ | |
| Income or loss from one House Prop. (excluding brought forward and carried forward losses) | ✓ | ✓ | ✓ | ✓ |
| Income or loss from more than one house property | ✓ | ✓ | ||
| Agricultural income exceeding Rs. 5,000 | ✓ | ✓ | ||
| Total income exceeding Rs. 50 lakhs | ✓ | ✓ | ✓ | |
| Dividend income exceeding Rs. 10 lakhs taxable under Section 115BBDA | ✓ | ✓ | ||
| Unexplained credit or unexplained investment taxable at 60% under Sections 68, 69, 69A, etc. | ✓ | ✓ | ||
| Income from other sources (except winnings from lottery & race horse or Other Source losses) | ✓ | ✓ | ✓ | ✓ |
| Income from other sources (incl. winnings from lottery & race horse or Other Source losses) | ✓ | ✓ | ✓ | |
| Capital gains/loss on sale of investments/property | ✓ | ✓ | ||
| Interest, salary, bonus, commission or share of profit received by a partner from a firm. | ✓ | |||
| Income from business or profession | ✓ | |||
| Income from presumptive business | ✓ | |||
| Income from foreign sources or Foreign assets or having Signing authority in any account out of India | ✓ | ✓ | ||
| Income to be apportioned in accordance with Section 5A | ✓ | ✓ | ✓ | |
| Claiming relief of tax under sections 90, 90A or 91 | ✓ | ✓ | ||
| * Only an Individual, who is an ordinarily resident in India, can file income-tax return in Form ITR-1. | ||||
|
Other Assessee |
||||
| Status of Assessee | ITR 4 | ITR
5 |
ITR
6 |
ITR
7 |
| Firm (excluding LLPs) opting for presumptive taxation scheme | ✓ | |||
| Firm (incl. LLPs), Association of Persons, Body of Individuals, Local Authority, Artificial Juridical Person | ✓ | |||
| Companies other than companies claiming exemption under Sec. 11 | ✓ | |||
| Persons including companies required to furnish return under: A. Section 139(4A); B. Section 139(4B); C. Section 139(4C); D. Section 139(4D); E. Section 139(4E); and F. Section 139(4F) | ✓ | |||
Additional Disclosure Requirements / Changes/ Amendment in ITR for A.Y. 2018-19
| Particulars | Description in Brief | |
| 1. | Additional disclosure requirements for Ind AS Compliant Companies | The ITR 6 introduces a new Schedule for Ind AS Compliant companies wherein they shall be required to disclose the balance sheet and profit & loss account in the same format as prescribed under of Schedule III to the Companies Act, 2013. Further as per the new sub-sections (2A) to (2C) in Section 115JB Ind AS compliant companies require to make additional adjustments to the book profit for all items credited and/or debited to “Other Comprehensive Income”. The new incorporates the necessary changes enabling companies to calculate the book profit in accordance with new provision. |
| 2 | Row is added in the new ITR form to enable the assessee to fill the details of late filing fees. | A new fees under section 234F has been introduced in lieu of penalty u/s 271F Late fee Rs. 5,000 if ITR is filed before 31 December of the Assessment Year & Rs. 10,000 in any other case [in case total income < Rs. 5 lakhs late fee would be Rs. 1,000]. The assessee shall now be required to pay the late filing fees along with interest u/s 234A, 234B and 234C.
The Income-tax Dept. shall not be required to initiate the penalty proceedings separately for late fees. |
| 3 | More details for Salary& House Prop | The new ITR forms ITR 1 & 4 require the individual assessee to provide detailed calculation in case of Salary & House Property income. |
| 4 | Addl. details under presumptive scheme | The new ITR 4 form seeks more financial details of business such as amount of secured/unsecured loans, advances, fixed assets, capital account etc. Further, new ITR 4 seeks GSTR no. of the assessee and turnover as per GST return filed by him |
| 5 | Transfer of TDS Credit |
All citizens who are domiciled in Goa and to whom the Portuguese Civil Code of 1860 is applicable are governed by the system of Community of Property. Under this a person is entitled to inherit 50% of the property of his spouse and income therefrom to be shared equally. Dept. has recognised this for the purpose of assessment in respect of all income other than salary. If an income, which is added to the common pool, has been subjected to TDS, the assessee face difficulty in proving their claim for TDS Credit for Tax deducted in the name of another person as explained above in case of inheritance. Income-tax Dept. matches the TDS disclosed in ITR with TDS shown in Form 26AS and in case of mismatch Dept. asks for reasons. To overcome this problem, new columns in TDS Schedule is inserted which would allow Dept. to easily correlate the PAN, amount of income and TDS thereon as disclosed by both the parties in their respective return of income making it convenient for the assessee to claim the credit of tax deducted in name of another person. (ITR 2 to 7) |
| 6 | Capital Gains in case of transfer of unquoted shares | New Section 50CA was introduced w.e.f AY 2018-19 which provides that if unlisted shares are transferred at a price less than FMV than Sales Consideration shall be deemed to be the price as calculated by a Merchant Banker or a CA on the valuation date. Hence now mandatory for the investors to obtain valuation report for unquoted shares. To ensure this the new ITR require the FIIs and other assessee to provide the information in respect of unlisted shares: a. Sales Consideration b. FMV as determined above c. Deemed Full Value of consideration (higher of a or b) [ITR 2, 3, 5, 6 and 7] |
| 7 | Reporting Sum Taxable as Gift |
Erstwhile provisions of Section 56(2)(vii) were applicable only to an individual and HUF. It provides that any sum of money or any property received by an individual or HUF without consideration or for inadequate consideration (in excess of Rs. 50,000) shall be taxable as income from other sources. Insertion of Section 56(2)(x) extended the scope to all taxpayers consequently, new columns have been inserted in ITR forms under ‘Schedule OS’ to report such income. [ITR 2, 3, 5, 6 and 7] |
| 8 | Partners cannot use ITR 2 | Up to last year, an individual or an HUF who are a partner in a firm can use ITR 2 to file return provided not have any income from proprietorship business, where ITR 3 was allowed to be filed. Now for AY 2018-19, only Form ITR 3 is allowed for such assessee. |
| 9 | Revised Depreciation Schedule |
The CBDT vide Amendment Rules, 2016, dated 07-11-2016 clarified that block of assets eligible for depreciation at the rate of 50%, 60%, 80% or 100% would be eligible for depreciation at the rate of 40%. The new ITR Forms replaced the depreciation column of 50/60/80/100 percent with 40% for Plant & Machinery and Building. New columns have also been inserted to enable the entities to claim proportionate depreciation in the event of business re-organisation, i.e., demerger, amalgamation, etc. Further, a field is added to disclose the disallowance to be made in respect of depreciation under section 38(2) if an asset is not exclusively used for business purpose. [ITR 3, 5 and 6] |
| 10 | Details of transactions with Registered & URD suppliers under GST | Every Company, who is not required to get its accounts audited under Section 44AB, has to provide following details in respect of transactions with a registered or unregistered supplier under GST: a. Transactions in exempt goods or services b. Transactions with composite suppliers c. Transaction with registered entities and total sum paid to them d. Transaction with unregistered entities [ITR 6] |
| 11 | Assessee claiming DTAA relief is required to report more details | Every assessee (resident or non-resident) claiming DTAA relief in India in respect of capital gains or income from other sources are required to provide details of applicable DTAA. The new ITR Forms seeks following additional details for current year: a. Rate as per treaty b. Rate as per Income tax c. Section of the Income-tax Act d. Applicable rate [lower of (a) or (b)] [For ITR 2, 3, 5 and 6] |
| 12 | Info relating to capital gains exemption |
The new ITR Forms introduce details of each capital gains exemption under Sections 54, 54B, 54EC, 54EE, 54F, 54GB and 115F in applicable column. Further, the date of transfer of original capital asset needs to be mentioned which was missing in earlier ITR Forms. [Applicable for ITR 2, 3, 5 and 6] |
| 13 | Disallowance of expenses in case of TDS default (for residuary income) | The provisions of Section 40(a)(ia) disallow 30% of certain expenditures if tax is not deducted in respect of those expenditures or if tax is deducted but not deposited on or before the due date for filing return. The Finance Act, 2017 introduced the similar disallowance provision. A new column has been inserted in the ITR Forms to report such disallowances. [Applicable for ITR 2, 3, 5, 6 and 7] |
| 14 | Taxability on remission of trading liability in case of ‘Income from other source’ | As per section 41(1), if a business entity recovers any amount in respect of an allowance or deduction by way of remission or cessation thereof, the amount so received shall be deemed income chargeable to tax. There is a similar provision in respect of an expense which had been claimed as deduction against ‘Income from other sources’. The new ITR forms require separate reporting of such remission or cessation, which is taxable as per Section 59, in Schedule OS. [Applicable for ITR 2, 3, 5, 6 and 7] |
| 15 | Income from transfer of Carbon Credits | Carbon credits is an incentive given to an Industries for reduction of the emission of Green House gases. Such credits can be bought and sold in international markets at the prevailing market price. Section 115BBG provides that income from transfer of carbon credit shall be taxable at the concessional rate of 10% (+surcharge & cess) & without allowing any expenditure from such income. [ITR 2, 3, 5, 6, 7] |
| 16 | Impact on profit or loss due to ICDS deviation | In earlier ITR Forms, net impact of ICDS on the profit or loss was required to be reported in Part A of OI (Other Information). The new ITR Forms require separate reporting of both profit and loss in Schedule OI, Schedule BP and Schedule ICDS. [Applicable for ITR 3, 5 and 6] |
| 17 | Details of GST paid and refunded | The new ITR forms have introduced new columns to report CGST, SGST, IGST and UTGST paid by, or refunded to, assessee during the Financial Year. [Applicable for ITR 3, 5, and 6] |
| 18 | Foreign bank account of NRI |
The new ITR forms allow non-residents to furnish details of any one foreign Bank Account for the purpose of payment of income-tax refund [Applicable for ITR 2, 3, 4, 5, 6 and 7]. |
| 19 | Reporting of Corporate Social Responsibility appropriations | CSR expenditures are mandatory under the Companies Act, 2013 and these are not deductible u/s 37(1). Companies covered u/s 135 of Companies Act 2013 are required to disclose CSR expenditure in its Board’s report. A new column has been inserted in ITR Form 6 to provide details of apportionments made by the companies from the net profit for the CSR activities. [Applicable for ITR 6] |
| 20 | Foreign Currency payments/receipts | Assessee who is not liable to get its accounts audited under section 44AB are required to provide details of foreign payments/receipts towards capital and revenue nature in the new schedule inserted in Form ITR 6 |
| 21 | Ownership information for unlisted Company | The new ITR 6 requires every unlisted company to provide details viz., the name, address, percentage of shares held and PAN of all beneficial owners who are holding 10% or more voting power (directly or indirectly) at any time during the year 2017-18. [Applicable for ITR 6] |
| 22 | Trusts to disclose more information in ITR | Form ITR 7 require to disclose following additional information: a. Aggregate annual receipts of the projects/institutions. b. Date of registration or approval granted to the trust. c. Amount utilized during the year for the stated objects out of surplus sum accumulated during earlier year. (Details about the name & annual receipts of institutes covered u/s 10(23C)(iiiab), (iiiac), (iiiad) & (iiiae) has been removed) |
| 23 | Details of fresh registration upon change of objects [Section 12A] | Where a charitable institution has been granted registration and, subsequently, it has adopted or modified the objects which do not conform to the conditions of registration than a fresh registration is required. New ITR-7 require to furnish A. Date of change in objects B. Application for fresh registration has been made within stipulated time period C. Fresh registration has been granted D. Date of such fresh registration |
| 24 | Taxability of Dividend above Rs. 10 lakhs | Section 115BBDA provides for levy of additional tax on dividend above Rs. 10 lakhs received in aggregate by all resident taxpayers (except domestic company, funds or instructions as referred in Section 10(23C) & a trust registered u/s 12A or 12AA) from Domestic Companies. New Schedule OS & Schedule SI of Form ITR 7. |
| 25 | No deduction for corpus donations made to other institutions | Up to Assessment Year 2017-18, a donation made by a registered trust to another registered trust constituted application of income notwithstanding that the donation was made with a specific direction that it shall form part of the corpus of the donee. As per Explanation 2 inserted from Assessment Year 2018-19 states that any donation to another charitable institution registered under section 12AA with a specific direction that it shall form part of the corpus of the donee, shall not be treated as application of income for charitable or religious purposes. The consequential changes have been made in Schedule TI (Statement of Income) all the corpus donations made by a trust to another registered trust shall be added back to the taxable income of the donor trust. [Applicable for ITR 7] |
| 26 | Political Parties to confirm if cash donations are received | Registered political parties are exempt from income-tax by virtue of section 13A of Income-tax Act. From assessment year 2018-19, Section 13A puts a restriction on political parties against receiving the cash donations in excess of Rs. 2,000 further a political party will lose its tax exemption if not complied with section 13A. The new ITR 7 requires the political parties to provide a declaration by selecting the ‘Yes’ or ‘No’ check-box to confirm whether it has received any cash donation in excess of Rs. 2,000.
A political party is now required to disclose more information about the auditor who is signing the audit report of the political party. |
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VERY NEATLY COMPILED RAMESHWAR
if we have any turn over before gst registration {SINCE VOLUNTERY} .hence the GST turn over does not match. Kindly advice how to fill the turn over.
are the new fields added for balance sheet in itr-4 are to be compulsorily filled
kindly fwd ur eml id, contact no. & facebook id.
which assessees are mandatorily required to e-file income tax returns for ay 2018-19 ?
The lic premium is paid but not entered in form 16 due to premium is paid at march 18,how rebate u/s 80c is claimed?please let me know.
Well laid-out details. I notice that in almost all cases the Indian IT and TaxGuru, or similar firms, do not provide enough information for non-residents. In this article I read “* Only an Individual, who is an ordinarily resident in India, can file income-tax return in Form ITR-1”. I am a non-resident, and in the past, have used ITR1. Is this a change from that past-practice?
All of you CAs forget NRIs. I understand that NRIs who have so far been filing ITR-1 can no longer do that, and have to file only ITR-2
Thanks Shri Rameshwar ji you have compiled all information in a very appropriate manner.
Useful details,Thanks