New Income Tax Forms has been notified by CBDT via Rule 12 on 31.03.2017 for AY 2017-18 vide Notification No 21/2017 dated 30.03.2017.
Overview of Changes:
♦ Simplified One Page ITR 1 has been notified.
♦ For Individuals, Aadhar Card Number/ Enrolment ID is compulsory where Person is eligible for Aadhar Card.
♦ Specific Column for Showing Cash Deposits during 09.11.16 to 30.12.16
♦ ITR 1 can only be used where total income does not exceed Rs. 50 lakhs
♦ Now, ITR 1 cannot be filed when you have Taxable Dividend Income u/s 115BBDA or income u/s 115BBE.
♦ Only Super Senior Citizen or Individual / HUF having total income below 5 lakh can have option to file Tax return in Paper Form (Option available for ITR-1 & Sugam ITR-4 only)
♦ ITR Form 2A has been discontinued. Person who earlier filed Return in Form ITR 2A is now required to file ITR 2.
♦ Earlier for person to whom ITR 4 was applicable, now they need to file return in ITR-3.
♦ Earlier for person to whom ITR 3 was applicable, now they need to file return in ITR-2.
♦ New ITR 4 (Sugam) is for Presumptive Taxation u/s 44AD/44ADA/44AE etc.
♦ In Summary, Revised ITR Form Applicability is as under:
- ITR 1 – Individuals and HUFs having income from Salaries, One House Property, Other sources (Not exceeding Rs 50 lakhs)(No Taxable Dividend Income u/s 115BBDA or 115BBE or claiming relief u/s 90 or 90A)
- ITR-2 – Individuals and HUFs having no business income from Proprietary Business or Profession (i.e. ITR 2 applies for Individual and HUF who are partner in partnership firm)
- ITR-3 – Individuals and HUFs having income from Proprietary Business or Profession
- ITR-4 – Presumptive Income from Business or Profession as per section 44AD/44ADA/44AE
- ITR-5 – Firm, LLP, Cooperative Society, Private Discretionary Trust, BOI, AJP.
- ITR-6 – Company (Other than companies claiming exemption u/s 11)
- ITR-7 – For Person specified u/s 139(4A),139(4B),139(4C),139(4D),139(4E), 139(4F)
(Author can be reached at pratik.shah@kcmehta.com)
There should be only two categories of Income tax returns i.e corporate assesses and non corporate assesses. The assesses can fill up the necessary details in the annexes as may be applicable.There is no reason for having so many forms and there is no reason for publishing the returns of income every year.