Changes in Income Tax Returns AY 2018-19
ITR Forms as heard by everyone Income Tax Returns, The pain for everyone and every year to disclose the Income earned in the previous year. Ever year new ITR Form is issued by CBDT with changes and all it takes to learn it from scratch. The new ITR Forms shift the onus on the taxpayers to prove their claim for deductions, expenses or exemptions. These ITR forms seek more information from trusts, taxpayers who opted for presumptive taxation scheme, investors in shares of unlisted companies, so on and so forth.
|
ITR Form Name |
Purpose |
Assesse |
|
1 |
Income from Salaries, one house property, other sources (Interest etc.) and having total income upto Rs.50 lakh |
Individual |
|
2 |
Not carrying out business or profession under any proprietorship |
Individual and HUF |
|
3 |
Having income from a proprietary business or profession |
Individual and HUF |
|
4 |
For presumptive income from Business & Profession |
Individual and HUF |
|
5 |
For persons other than:- |
AOP/Trust/BOI/JV |
|
6 |
For Companies other than companies claiming exemption under section 11 |
Companies |
|
7 |
For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F) |
scientific research association, news agency, association or institution referred to in section 10(23A), Etc |
28 key changes in new ITR forms in which would impact assessees
1. The new ITR-1 requires detailed calculation of income from salary and from house property, which was restricted to single figure till last year.
2. ITR-1 form has been withdrawn for a non-resident.
3. New ITR 4 form seeks details of 14 financial particulars of business such as amount of secured/unsecured loans, advances, fixed assets, capital account, etc.
4. ITR 4 requires a taxpayer to provide the aggregate turnover reported by him in GST Returns, If any difference is found in turnover reported in GST return and ITR, presumptive taxpayers can expect a notice from the Dept. to explain the mismatch in turnover.
5. New ITR Form introduce specific columns to report each capital gain exemption separately, Further, a taxpayer availing of these capital gains exemptions is required to mention the date of transfer of original capital asset which was missing in earlier ITR Forms.
6. 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.
7. The taxpayer shall now be required to pay late filing fees under section 234F (INR 5000 till Dec’18 and INR 10,000 thereafter) along with interest under section 234A, 234B and 234C before filing the ITR.
8. An individual or an HUF, who is a partner in a firm, shall be required to file his ITR in Form ITR 3 only
9. After enactment of GST Act, the new ITR forms have introduced new columns to report CGST, SGST, IGST and UTGST paid by, or refunded to, assesse during the Financial Year
10. 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.
11. ITR-6 Additional disclosure requirements for Ind AS-Compliant Companies
12. ITR-2-7 Transfer of TDS Credit to Other Person
· Currently, the Income Tax Department matches the TDS disclosed in ITR with the amount of TDS as shown in Form 26AS and in case of mismatch, the department asks the assessee to reconcile the mismatch. Therefore, in the situations as mentioned above, the taxpayers were facing difficulties in claiming the TDS credit. To overcome this problem, the ITR forms introduce new columns in 'TDS schedule' which would allow the department to easily correlate the PAN, amount of income and TDS thereon as disclosed by both the parties in their respective return of income. It would make it convenient for the assessee to claim the credit of tax deducted in name of another person.
13. ITR- 3-6 Revised Depreciation Schedule, The new ITR Forms have replaced the depreciation column of 50/60/80/100 per cent with 40 per cent in case of plant and machinery, and building.
14. ITR- 6 Details of business transactions with registered and unregistered suppliers under GST, Transactions in exempt goods or services, Transactions with composite suppliers, Transaction with registered entities and total sum paid to them, Transaction with unregistered entities
15. ITR-2-6(except 4)Assessee claiming DTAA relief is required to report more details
16. ITR-2-7(except 4)Disallowance of expenses in case of TDS default (for residuary income)
17. ITR-2-7(except 4)Taxability on remission of trading liability in case of 'income from other source'
18. ITR-2-7(except 4) Income from transfer of Carbon Credits
19. ITR-3-6 Impact on profit or loss due to ICDS deviation
20. ITR-2-7 Details of foreign bank account of non-residents
21. ITR-6 Reporting of CSR appropriations
22. ITR-6 Break-up of payments/receipts in foreign currency
23. ITR-6 Ownership information in case of unlisted company
24. ITR-7 Trusts to disclose more information in ITR
25. ITR-7 Details of fresh registration upon change of objects (Section 12A)
26. ITR-7 Taxability of Dividend in excess of Rs. 10 lakh (Section 115BBDA)
27. ITR-7 No deduction for corpus donations made to other institutions (Section 11)
28. ITR-7 Political Parties to confirm if cash donations are received (Section 13A)