New ITR Forms to fill for FY 2017-18 (AY 18-19)

The new ITR forms mandate the salaried class to provide their salary breakup.

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The Central Board of Direct Taxes (CBDT) has recently released New ITR Forms to fill for FY 2017-18 (AY 18-19). All 7 ITRs are to be filed electronically on the IT department website.  The new ITR forms mandate the salaried class to provide their salary breakup includes basic, allowances, perquisites etc., and businessmen to provide their GST number and turnover. 

What is Financial Year: It is between 1 April to 31 March in which one earns the income.
What is Assessment Year: It is the period in which your Income will be Taxed and Assessed.

Also read: How To Check Your Tax Refund Status Online

This year there are few changes in the ITR forms and As a tax payer, it is important to know these changes.

1. The number of ITR Forms have been reduced from the existing 9 to just 7 forms.

2. A new one page ITR-1 is introduced to simplify the income tax returns.

3. ITR Forms like ITR-2, ITR-2A and ITR-3 have been restructured and now we have a single ITR-2.

4. Existing ITR-4 and ITR-4S have been renumbered as ITR-3 and ITR-4 respectively.

5. From this year, there will be a penalty for income tax returns filed after the due date.

6. Now NRI should have to use ITR 2 instead of ITR 1. They also have an option to furnish details of any one foreign Bank Account for the purpose of credit of tax refunds.

7. Aadhaar is mandatory to file your Income Tax Returns.

8. All these ITR Forms are to be filed electronically with two exceptions cases where they have an option to file “ITR Form-1 or ITR-4” in paper form:

  • Tax payer aged 80 years or more at any time during the previous year; or
  • HUF or an individual, whose income is less than 5 Lakh rupees and who has not claimed any refund in the return of income.

Which Income tax Return (ITR) form to fill for FY 2017-18 (AY 17-18)

Who can use New ITR 1 (SAHAJ) form

  • Salary/Pension Income
  • Income from one house property
  • Agricultural income less than Rs. 5,000/-
  • Nil Income from Business or Profession and no income for capital gains
  • No Income from outside India or no assets abroad.
  • Income from other sources, except income from winning lottery etc.
  • Total income less than Rs.50 lakhs.

Who can use New ITR 2 form

  • Salary/Pension Income
  • Income from more than One house property
  • Agricultural income of more than Rs 5,000
  • Income from Capital Gains
  • Income from Other Sources including winnings from lottery etc.
  • Income from outside India or having asset abroad
  • No Income from Business or Profession

Who can use New ITR 3 form

  • New ITR 3 form is for individuals and HUFs who are having proprietary business, profession or having income as a partner in a Partnership firm.
  • Income from Salary/Pension
  • Income from more than 1 house property
  • Income from Other Sources including winnings from lottery, horse racing etc. 

Who can use New ITR 4S (Sugam) form

  • This New ITR 4S form can be used by an individual / HUF / Partnership firm who show their income under 44AD, 44ADA & 44AE
  • Agricultural income less than Rs. 5,000
  • No income from Speculative Business and other special incomes
  • No income from an agency business or income in the nature of commission or brokerage
  • Income from Salary/Pension
  • Income from 1 house property
  • Income from other sources except from winning lottery, race horses etc.
  • No asset or income outside India

With these new ITR forms, the IT department wants more information about your finances and business.

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