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The CBDT has been very prompt this time again, in notifying the ITR forms for the Assessment Year(AY) 2018-19. These have been notified on 5 April 2018, right at the beginning of the AY, which will help taxpayers to commence their return filing process. Here, in this article, we have captured some of the significant changes made in each of these forms:

Significant changes in forms for FY 2017-18 (AY 2018-19)

1. ITR 1

  • Earlier ITR-1 was applicable for both Residents, Residents Not ordinarily resident (RNOR) and also Non-residents. Now this from has been made applicable only for resident individuals.
  • The condition of the individual having income from salaries, one house property, other income and having total income upto Rs 50 lakhs continues
  • There is a requirement to furnish a break-up of salary. Until now, these details would appear only in Form 16 and the requirement to disclose them in the return had never arisen. 
  • There is also a requirement to furnish a break up of Income under House Property which was earlier mandatory only for ITR -2 and other forms

Salary and House property changes can be noted from the below screenshot

ITR

  • 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.

2. ITR 2

  • Given that ITR-1 is not applicable for the RNORs and the non-residents, they have to necessarily go with ITR-2 for filing their return of income
  • The applicability of ITR-2 has been made more clear in as much as now it is applicable for individuals and HUF having income other than income under the head “Profits and Gains from Business or Profession”
  • The field of “Profits and Gains from Business or Profession” which was earlier featuring under Part B – TI has now been removed.
  • Following this, Schedule-IF (Income from Firm) and Schedule-BP have also been removed. This now means, anyone  earning income from a partnership firm, now has to file ITR-3 and not ITR -2
  • Additionally, under Schedule AL, the field pertaining to “Interest held in the assets of a firm or association of persons (AOP) as a partner or member thereof”  has been done away with
  • Similar to ITR -1, even in 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.

3. ITR 3

  • This ITR has been specifically prescribed for individuals and HUF having “Income from Profits and Gains from Business or Profession”
  • Under General Information, a field relating to Section 115H has been added which relates to benefit being availed under certain cases even after the taxpayer becomes a resident.
  • 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    

4. ITR 4

  • Now, there is an additional requirement to quote GSTR No. and turnover/gross receipts as per GST return filed
  • Further, fields have been added under Financial particulars where now an assessee has to declare the following additional information.

i. Partners/ Members Capital

ii.Secured Loan

iii Unsecured Loan

iv. Advances

v. Fixed Assets

This is the relevant extract from the Form

ITR

5. Applicable to all forms

  1. Requirement of furnishing details of cash deposit for specified period as provided in ITR Form for AY 2017-18 has been done away with from AY 2018-19.
  2. Although the due date to file your return is almost four months from now, it is always better to file your returns at the earliest because from this year on, you will be liable to a penalty for delay in filing of return. If there has been a delay, there is a field specifically to furnish details of fee payable under Section 234F in the returns.
  3. There has been no change in the manner of filing your returns. All returns will be filed electronically with the only exception being for the following taxpayers filing ITR – 1 or ITR -4 who can go ahead filing a paper return.

(i) an Individual of the age of 80 years or more at any time during the previous year; or

(ii) an individual or HUF whose income does not exceed five lakh rupees and who has not claimed any refund in the Return of Income.