New ITR Forms for FY2017-18 – AY2018-19 – Which ITR Form Should you file?

New ITR Forms for FY2017-18 - AY2018-19 – Which ITR Form Should you fileNew ITR Forms for FY2017-18 – AY2018-19 – Which ITR Form Should you file?


Few days back, Central Board of Direct Taxes (CBDT) has issued new ITR forms for Financial Year 2017-2018 i.e. Assessment Year 2018-2019. Now salaried individuals need to furnish more details in the Income Tax Return (ITR) forms from this year. NRI’s can now furnish foreign bank for claiming income tax refunds. What are the changes done in recent New ITR Forms for FY2017-18 – AY2018-19? Which ITR forms you need to use for financial year 2017-18 (Assessment Year 2018-19). This article provides more information about New ITR Forms applicable from this year onwards.

Also Read: How Salaried Individuals Save Income Tax in India?

New ITR Forms for FY2017-18 – AY2018-19 – what are the changes?


Central Board of Direct Taxes (CBDT) has notified Income Tax Return Forms for the AY 2018-19 and here are the changes.

1) Simplified one page ITR Form-1 (Sahaj): Now one can fill Sahaj ITR Form-1 who is resident Indian and having total income of upto Rs 50 lakh through income from salary, one house property, other income (which is generally interest on FDs).

2) CBDT indicated that details relating to salary and house property have been rationalized and mandated to include basic details of salary and income from house property. Generally salary details are already available in Form-16, hence employees need not run to employer for these details.

3) ITR Form-2 has been rationalized and now Individuals and HUFs having income under any head other than business or profession shall be eligible to file ITR Form-2.

4) If individuals / HUFs having income from business or profession should file either ITR Form-3 or ITR Form-4.

5) For NRIs, now a provision to update foreign bank details is given so that they can provide for the income tax refund purpose.

6) Last year, ITR had “Cash deposits made during specific period” as it was after demonetization. Now it is removed from AY 2018-19 onwards. Means, you don’t need to furnish details of cash deposits from this year onwards any more.

You need to file income tax returns by 31st July, hence it is important for you to understand which form you need to file for financial year 2017-18 (assessment year 2018-19).

New ITR Forms for FY2017-18 / AY2018-19 – Which ITR Form Should you file?


1) ITR 1 Form (Sahaj) For FY 2017-18 / AY 2018-19


ITR-1 Who can use this form?


In simple terms, you can use this form if you have income from salary/pension + Income from one house property + Income from other sources (Like Interest income). Even if the clubbing definition comes into picture for clubbing income from your spouse of Minor child, this form should be used.

ITR-1 Who should NOT use this form?


IT has prescribed a limit of total income for this ITR. If your total income from all above in a year exceeds over Rs 50 Lakhs, you cannot use this form

You cannot use this form if you have Income from more than one house property.

If you have “Income from other income” other than Interest income, you cannot use this form (e.g. Income from lottery win or income from Race horses).

You cannot use this form if you have income from capital gains, agricultural income exceeding Rs 5,000 in a year, income from business or profession.

You cannot use this form if you are resident Indian, but have income source outside India (e.g. bloggers who earn money in Dollars where the payment is done from outside India or freelancers who earn money where the source is outside India).

Also Read: Best Aggressive Growth Mutual Funds to invest in 2018

2) ITR 2 Form For FY 2017-18 / AY 2018-19


ITR-2 Who can use this form?


In simple terms, this form can be used by Individuals / HUF’s who has Income from Salary/Pension + Income from multiple house properties + Income from capital gains + Income from Other Sources including amount received from lottery win or race horses + Income from asset outside India / Income from source outside India + Agricultural income of more than Rs 5,000 per year + for individuals where the income clubbing provisions apply pertaining to income of spouse or minor child.

ITR-2 Who should NOT use this form?


You cannot use ITR-2 Form if you have income from business or profession.

3) ITR 3 Form For FY 2017-18 / AY 2018-19


From this year, ITR-4 is renamed to ITR-3, hence don’t get confused.

ITR-2 Who can use this form?


You can use this ITR-2 form if you are individual/HUF and have income from business or profession or have income from any of a partnership firm.

You can use this form if you have above income + income from salary + income from multiple houses + lottery winnings + capital gains + speculative income like horse racing.

4) ITR 4S Sugam for FY 2017-18 / AY 2018-19


ITR-4S Sugam Who can use this form?


In simple terms, you can use this form if you are individual/HUF and have Business income where such income is computed in accordance with special provisions of sections 44AD and 44AE + If you have income from Profession where such income is computed in accordance with special provisions referred to in sections 44ADA + Income from Salary/ Pension + Income from One House Property + Income from Other Sources.

ITR-4S Sugam – Who should NOT use this form?


You should not use this form if you have income from multiple house properties or Income from lottery winnings/race horses or capital gains or income taxable under section 115BBDA or income referred to in section 115BBE or Agricultural income which exceeds Rs 5,000 or Income from Speculative Business and other special incomes or Income for resident Indian having asset outside India or if you have income from any source outside India.

Some of the FAQS on using New ITR Forms for FY2017-18 / AY2018-19.


1) I am NRI and want to claim income tax refund to my foreign bank account, how can I do that and which form I need to fill?


CBDT in its new ITR forms for Assessment Year 2018-19 provided an option for NRIs to input foreign bank account so that income tax refunds can be processed to that account. NRI’s cannot file ITR-1 anymore. They need to file ITR-2 from this year onwards.

2) What salary details I need to furnish from this year onwards as a salaried individual?


The new ITR forms for assessment year 2018-19 requires salaried taxpayers to disclose their salary break-up. Taxpayers will have to give details about allowances that are not exempt, value of perquisites, profit in lieu of salary and deductions claimed under Section 16. Typically, these are available in the Form 16 issued by the employer but not disclosed in the tax return.

3) My Salary income is Rs 10 Lakhs and I do not have any other income – Which ITR form should I file?


Since your income is less than Rs 50 Lakh and do not have other incomes, you can fill ITR-1 Form.

4) I earn income from business and do not have taxable income, should I file ITR?


If you do not have taxable income, you don’t need to file income tax returns. However, it is always good to file nil tax returns for the year in case you may expect taxable income in future.

5 )My age is above 80 years and cannot fill such complicated ITR Forms, is there any ways I can file simple ITR?


The tax department has also given an option to taxpayers above the age of 80 and those earning income up to Rs 5 lakh and not claiming refunds to fill ITR-1 and ITR-4 in paper form.

6) What Precautions you should take before filing Income Tax Returns for AY2018-19?


a) If you are salaried individual, just check that your Form-16 has correct details. If not, contact your employer / HR Department.

b) Check Form 26AS that TDS deducted by your employer / customers has all entries. You can see this article more about how to check Form26AS.

c) If you have changed your job, you might have 2 Form-16s, hence verify the details before you file ITR.

d) If you have interest income from corporate FDs or bank FD’s, they would have deducted simple 10% TDS, however based on your tax bracket, you need to pay income tax before filing income tax returns

e) If you have missed to claim certain deductions (Like 80C etc.,) before 31st March, you can still claim them while filing income tax returns except for few cases like LTA/Medical Allowance.

What happens if you don’t file Tax Returns before 31st July?


You are supposed to file income tax returns (ITR) by 31st July.

1) If you don’t file ITR before 31st July, you can file ITR by 31st December with a fine of Rs 5,000.

2) If you don’t file ITR before 31st July, you can file ITR by 31st March with a fine of Rs 10,000.

3) You cannot file income tax returns after 31st March pertaining to previous financial year.

Please note that if your income is less than Rs 5 Lakh, the penalty will not exceed Rs 1,000.

You can download the New ITR Forms from our website here

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Suresh

New ITR Forms for FY2017-18 – AY2018-19 – Which ITR Form Should you file?

9 comments

  • dattatreyahg

    I have Pension, income from House-rent, Professional Actor’s income, Capital gains from shares, Income from Bank interests. My professional income is less than 50 lakhs in a year. Can I use Sec 44ADA? Which ITR I should fill ?

  • Saurabh Sarang

    Which ITR form is to be filed if one is earning in dollars and sources are outside India. In short freelancers.

  • Sivaraman

    Highly informative post. Thanks for sharing. I got some profit on Trading. Should I fill ITR 2 even if it is long term gain. Please throw some light sir.

    Thanks

    Sivaraman V.K

     

  • Sandeep Gunjal

    Sir I am salraied person. But this year I sold agricultural land which does not fall under capital gains being in rural area. Whcih form will be applicable to me?

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