New ITR Forms – Changes Applicable for AY 2018-19

1. Changes in ITR 1 Applicable for A.Y. 2018-19

This from has been made applicable only for resident individuals. Conditions: Income from salaries, one house property, other income and having total income up to Rs.50 lakhs and his total income should not include any income from betting, gambling, etc. There is a requirement to furnish a break-up of salary like in Form 16, break up of Income under House Property.

Under the Schedule on TDS, there is also an additional field for furnishing details of TDS as per Form 26QC for TDS made on rent. Also, provision for quoting of PAN of Tenant for such rent cases has also been made.

The new ITR-1 form has been withdrawn for a non-resident. Therefore, a non-resident will have to choose either from ITR-2 or ITR-3 to file his return of income for the Assessment Year 2018-19.

2. Changes in ITR 2 Applicable for A.Y. 2018-19

Individuals and HUF having income other than income under the head “Profits and Gains from Business or Profession”. Anyone (Ind/HUF who is a partner in a firm) earning income from a partnership firm, now has to file ITR-3 and not ITR -2. Under the Schedule on TDS, there is also an additional field for furnishing details of TDS as per Form 26QC for TDS made on rent. Also, provision for quoting of PAN of Tenant for such rent cases has also been made.

Specific columns have been introduced to report each capital gain exemption separately under Sections 54,54B, 54EC, 54EE, 54F, 54GB and 115F. Along with this date of transfer of original capital asset must also be mentioned.

3. Changes in ITR 3 Applicable for A.Y. 2018-19

Individuals and HUF having “Income from Profits and Gains from Business or Profession”. Fields under Schedule PL have been modified to include GST related details. Depreciation has been limited to a maximum of 40% in all depreciation related schedules (ITR3, 5, 6).

Specific columns have been introduced to report each capital gain exemption separately under Sections 54,54B, 54EC, 54EE, 54F, 54GB and 115F. Along with this date of transfer of original capital asset must also be mentioned.

Details of GST paid and refunded to the assessee during the financial year.

4. Changes in ITR 4 Applicable for A.Y. 2018-19

Taxpayers opting for presumptive scheme under section 44AD, 44ADA or 44AE, he will have to file the return of income in form ITR 4. The old ITR 4 sought only 4 financial particulars of the business, a) total creditors, (b) total debtors, (c) total stock-in-trade and (d) cash balance. Additional requirement to quote GSTR No. and turnover/gross receipts as per GST return filed.   The new ITR 4 form seeks details of 14 financial particulars of business such as:

i. Partners/ Members Capital

ii. Secured Loan

iii Unsecured Loan

iv. Advances

v. Fixed Assets

5. Changes in ITR 5 Applicable for A.Y. 2018-19

Depreciation has been limited to a maximum of 40% in all depreciation related schedules.

Specific columns have been introduced to report each capital gain exemption separately under Sections 54,54B, 54EC, 54EE, 54F, 54GB and 115F. Along with this date of transfer of original capital asset must also be mentioned.

Details of GST paid and refunded to the assessee during the financial year.

6. Changes in ITR 6 Applicable for A.Y. 2018-19

Company (not liable for Sec44AB audit) to provide details in respect of all transactions entered into during the year with a registered or unregistered supplier under GST: Transactions in/with:

a. Exempt goods or services

b. Composite suppliers

c. Registered entities and total sum paid to them

d. Unregistered entities.

Depreciation has been limited to a maximum of 40% in all depreciation related schedules.

Specific columns have been introduced to report each capital gain exemption separately under Sections 54,54B, 54EC, 54EE, 54F, 54GB and 115F. Along with this date of transfer of original capital asset must also be mentioned.

Details of GST paid and refunded to the assessee during the financial year.

Reporting of CSR appropriations: A new column has been inserted to provide details of apportionment made by the companies from the net profit for the CSR activities.

7. Changes Applicable to all ITR forms for A.Y. 2018-19

Reporting of sum taxable as gift: New columns have been inserted in all ITR forms except ITR-1 and ITR-4 under ‘Schedule OS’ to report any income specified in Section 56(2)(x).

If there has been a delay in filing return, there is a field specifically to furnish details of fee payable under Section 234F in the returns.

Disallowance of expenses in case of TDS default:

Applicable for ITR 2, 3, 5, 6 and 7

The provisions of Section 40(a)(ia) disallow 30% of certain expenditures if tax is not deducted in respect of those in accordance with Chapter XVII-B or if tax is deducted but not deposited on or before due date of filing of return of income. Finance Act 2017 introduced similar disallowance provision in case of income from other sources if tax is not deducted or not deposited in accordance with Chapter XVII-B. A new column has been inserted in ITR Forms to report such disallowances.

In the case of capital gain arising on transfer of unquoted shares, it would now be mandatory for the investors to obtain the valuation report. To ensure that investors correctly report the capital gains from unlisted shares, the new ITR Forms require the taxpayer to provide figures of actual sales consideration and FMV as determined by a Merchant Banker or CA.

If taxpayer does not furnish the ITR in time. The taxpayer shall now be required to pay late filing fees under section 234F along with interest under section 234A, 234B and 234C before filing the ITR.

Fee for default in furnishing return of income.

234F. (1) Without prejudice to the provisions of this Act, where a person required to furnish a return of income under section 139, fails to do so within the time prescribed in sub-section (1) of the said section, he shall pay, by way of fee, a sum of,—

 (a) five thousand rupees, if the return is furnished on or before the 31st day of December of the assessment year;

 (b) ten thousand rupees in any other case:

Provided that if the total income of the person does not exceed five lakh rupees, the fee payable under this section shall not exceed one thousand rupees.

(2) The provisions of this section shall apply in respect of return of income required to be furnished for the assessment year commencing on or after the 1st day of April, 2018.]

Individual taxpayers who are filing income-tax return in Form ITR 2 or ITR 3 or ITR 4 aren’t required to mention the gender, i.e., male or female or transgender, as the column of gender has been removed.

Disclaimer: Update is meant for information purpose only and does not purport to be advice or opinion. It is prepared based on the understanding of the provisions applicable as on date. Author is not responsible for any error or omission or for any action taken based on its contents. Please consult a Chartered Accountant before acting upon the above information.