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Key changes in ITRS’ form disclosure requirement

With invent of GST tax regime and other regulatory requirements various changes have been made in ITR forms. It is recommended that these changes should be properly understood before start filing ITR forms. Any wrong and incomplete information would have adverse impact on the assessee. Hence, a list of such changes is enumerated below:

For individual filing ITR 1:

For Assessment Year 2018-19, a one page simplified ITR 1 (Sahaj) has been notified. In ITR 1 of A.Y.2018-19, certain details relating to salary and income from house property have to be mandatorily filled in the form itself.

1. In case of salary, the details relating to salary (excluding all allowances, perquisites and profits in lieu of salary), allowances not exempt, value of perquisites, profits in lieu of salary and deductions under section 16 have to be filled up to arrive at the income chargeable under the head “Salaries”.
2. In case of income from house property, the details relating to gross rent received/receivable and taxes paid to local authorities have to be filled up to arrive at the annual value.
3. Hence, deduction @ 30% of annual value and interest payable on borrowed capital has to be filled up to arrive at the income chargeable under the head “Income from house property”.

Only an Individual, who is an ordinarily resident in India, can file income-tax return in Form ITR-1.

For individuals / HUFs filing ITR 2:

Income from Business or Profession is no more reportable in this return and further the assessees’ opting for presumptive tax regime also cannot use this return.

Last year (i.e. A.Y.2017-18), individuals and HUFs in receipt of salary, bonus, commission or remuneration from a firm in which they are partners, or in receipt of interest on capital from the firm, could also file ITR 2. This year, such persons have to file ITR 3.

For individuals / HUFs filing ITR 3:

Income from Business or Profession (either from presumptive or normal) earned by an Individual or HUF can be reported in this return. For presumptive income though there is a separate return prescribed but the Assessee has the option to use this form also.

For individuals / HUFs filing ITR 4:

ITR 4 (SUGAM) can be used by eligible assessees having presumptive income from business or profession under section 44AD, 44ADA or 44AE, under the head “Profits and gains of business or profession” have to file return in ITR 4. In addition, they may have salary income, income from one house property and income from other sources. (Except winning from lotteries etc).

Additional information in ITR 4:

1. Information relating to the GST Number and the Turnover/Gross Receipt as per GST return
   • The details provided are verified correspondingly with GST Returns, if applicable and also with Form 26AS.
2. In addition to sundry creditors, ITR 4 seeks details of partners/ members own capital, secured and unsecured loans, advances and other liabilities. The total capital and liabilities would be the sum of the figures of the above assets.
3. In addition to the three items of assets which are required to be disclosed in ITR 4 for A.Y.2017-18, ITR 4 for A.Y.2018-19 seeks details of balance with banks, loans and advances and other assets. The total assets would be the sum of the figures of the above assets.

Thus, before start filing income tax return for assessment year 2018-19 (relevant previous year 2017-18) once should collect correct and true information about the above additions and cross tallied the figures with GST return to avoid future problems.