“Indian Taxation League: New ITR Forms

 Income Tax V/S GST”

Arjuna(Fictional Character) : Krishna, IPL Cricket Season 11 has begun and new ITR forms has been notified by CBDT, what is your view on that?

Krishna(Fictional Character): Arjuna, There is also a new league that has been started, “Indian Taxation League” and the match is between GST and Income Tax. Recently CBDT has notified new changes in the ITR and now the taxpayers have to give details of their turnover reported in GST in Income Tax Return.

Arjuna (Fictional Character): Krishna, what are the major changes in these ITR?

Krishna (Fictional Character): Arjuna The changes are as follows-

  • The biggest change has been made in ITR-4 which has to be field by taxpayer opting for presumptive taxation, now taxpayers need to provide their GSTN and the turnover that has been reported in the GST return filed by them.
  • Earlier in ITR-4 the taxpayer under the presumptive scheme under 44AD needed to give only 4 financial figures i.e details of Cash, Stock, Debtors, Creditors but now the taxpayers need to give the complete balance sheet.
  • In ITR-6 the companies who are not liable for tax audit need to provide the breakup of the following-
  • Expenditure with entities registered in GST but the goods and services are exempt from GST.
  • Expenditure with entities under GST composition scheme.
  • Expenditure with other entities registered in GST.
  • Total payment to entities registered in GST.
  • Expenditures with entities not registered under GST.
  • Earlier details were not required for income earned from salary and house property but now all the ITR’s requires breakup of income from salary and house property which need to disclosed.
  • Earlier if the agriculture income was more than Rs 5,000 then the taxpayer needed to file ITR-3. Now the limit has been removed i.e even of the income of the taxpayer is more than Rs 5,000 then he can file ITR-1.
  • Earlier ITR 1 could be filed by non-resident taxpayers. From this financial year they have to file ITR-2 and ITR 1 has been restricted to only resident taxpayers.
  • Earlier individuals and HUF’s who had income from profits and gains from business or profession could file ITR-2 but now they need to file ITR-3. The change is that ITR-3 requires details of balance sheet and profit and loss account which is not required in ITR-2.
  • In ITR 3,5,6,7 where balance sheet and profit and loss account need to be given in ITR, bifurcation of CGST, SGST, IGST and UTGST on Sales, Purchases etc. needs to be given.
  • From the Financial Year 2017-18 late fees will be charged of the return is not filed within due date. The late fees of non-filing of return of Income Tax is Rs 1000 if Income does not exceed Rs 5,00,000 and Rs 5,000 if Income exceeds Rs 5,00,000, if not filed before 31th Rs 10,000 if the return is filed after 31st December.
  • Details of gift received from non-related parties without adequate consideration is now required to be shown by those taxpayer to whom ITR 2,5,6,7 are applicable.

Arjuna: Krishna, what should the people learn from these new ITR forms?

Krishna: Arjuna, Now the government is moving ahead by linking all the taxpayers in Income Tax and GST and hence GST details has to be given in ITR form which will be cross checked by the Income Tax Department. Hence the taxpayers should reconcile the details given in GST Returns and Books of Accounts. Thus taxpayer should play safely with tax laws. Now every ball (transaction) will be closely watched by GST and Income Tax Cameras hence taxpayers should not try to tamper with tax laws.

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5 responses to “Indian Taxation League: New ITR Forms – Income Tax V/S GST”

  1. RUPAK SINGHA says:

    How to file my ITR 4 without GSTR no as I am businessman carried on the business of jute which is exempted to gst and my annual turnover is below 20 lacs

  2. krishnamurthy says:

    Nice Article

  3. APPA RAO KELLA says:

    Under GST law, the small business/profession man below Rs.20 Lakhs turnover, need not have GSTIN.

    Now, do you say that for Filing ITR-4 (presumptive tax), every person is to take GST Registration???

    please clarify.

  4. Sharad Maheshwari says:

    Agriculture income more than 5000/- can be reported in ITR-1, Where to report in ITR-1 there is no option still showing Agriculture income less than or equal to 5000.

  5. AR4VIND R SHAH says:


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