Tax Planning Calculator482 views
- New ITR Form Seeks Salary Structure Details & Income from Property
- Mandatory for Small Businesses to Report Their GSTIN and Turnover Under GST
So finally came one of the most important news for all the income tax payers. Yes, the Central Board of Direct Taxes (CBDT) on Thursday made an announcement of the new Income Tax Return forms for the assessment year 2018-19. The policy making body of the tax department said the new changes have been introduced this year in the form in order to seek more details from individual taxpayers about their salary structure and income from the property. Not only this, it is now mandatory for small businesses to specify their Goods and Services Tax Identification Number (GSTIN) and turnover under GST.
However, there is no change in the process of filing the ITR except some fields that have ‘rationalised’ in the latest form as compared to last year. The last date to file an ITR for this assessment year is 31 July 2018.
Let’s just know the key highlights in the post below:
Table of Contents
New Additions for Salary Holders
The taxpayers will have to give details about allowances that are not exempt, value of the perquisites, profit in lieu of salary and deductions claimed under Section 16 of the Income Tax Act.
ITR-1 can be filed by an individual who “is resident other than not ordinarily resident and having an income of up to Rs 50 lakh and who is receiving income from salary, one house property or other interest income’’.
The new ITR forms seek elaborated details from individual taxpayers about their salary structure and income from the property.
For Businessmen and Hindu Undivided Families
In the new form, it is compulsory for all small businesses to specify their goods and services tax identification number (GSTIN) and turnover reported under GST.
The ITR-2 has “also been rationalised” for individuals and HUFs (Hindu Undivided Families) having income under any head other than business or profession.
“The individuals and HUFs having income under the head business or profession shall file either ITR-3 or ITR-4 in presumptive income cases.”
Businesses with a turnover of less than Rs 2 crore can do away with the requirement of maintaining books of accounts and instead pay a tax on the basis of a certain percentage of their turnover.
GSTIN number now has to be mentioned in ITR-4 filled by businesses and professionals claiming presumptive income. They also have to quote gross receipts as per GST returns. If experts are to be believed, the same has been done to link the direct and indirect taxes paid by the businesses.
Also, partnership firms will now have to use ITR-3 for filing their returns.
A big relief for NRIs as they can now provide the details of their foreign bank accounts to claim credit or refunds. Now NRIs will have to use ITR-2 to file their returns.
The tax department has also given an option to senior citizens who are 80 and above and have not claimed any return can file ITR in the paper form, using ITR-1 and ITR-4.
The new form now facilitates space for 12-digit aadhaar number
The CBDT has done away with furnishing details of cash deposits during demonetization as provided in ITR form for the Assessment Year 2017-18.
What is ITR-1 SAHAJ Form?
ITR-1 SAHAJ is a basic form , which is widely used by Salaried Individuals to file their Income Tax Returns with the Income Tax Department of India.
Who is Eligible to File ITR-1 Form?
This simplified one-page form is for individuals having income up to Rs.50 Lakh from the following sources:
- Income from Salary/Pension
- Income from One House Property
- Income from Other Sources (excluding winning from Lottery and Income from Race Horses)
How to File My ITR-1 Form?
You can submit your form either online or offline.
Only following persons have the option to file their returns in paper form.
- An individual at the age of 80 years or more at any time during the previous year
- An individual and HUF whose income does not exceed five lakhs rupees and who has not claimed any refund in the return of income
For offline, the return is furnished in a physical paper form.The Income Tax Department will issue you an acknowledgment at the time of submission of your physical paper return.
- By transmitting the data electronically and then submitting the verification of the return in the form of ITR-V to CPC, Bengaluru.
- By filing the return online and e-verifying the ITR-V through net banking/aadhaar OTP/EVC.
If you submit your ITR-1 Form electronically, the acknowledgment will be sent to your registered email id. You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department CPC office in Bangalore within 120 days of e-filing. Alternatively, you can e-verify your return.
What is the Structure of ITR-1 Form?
- Part A – General Information
- Part B – Gross total Income
- Part C – Deductions and taxable total income
- Part D – Computation of Tax Payable
- Part E – Other Information
- Schedule IT – Detail of Advance Tax and Self Assessment Tax payments
- Schedule TDS – Detail of TDS/TCS