Key Changes and New Requirements in ITR Forms for AY2018-19

ITR Forms The CBDT has notified 7 types of ITR forms which are applicable for the assessment year 2018-19 in respect of income earned during the financial year 2017-18. ITR 1 (Sahaj), ITR 2, 3, 3 & 4 are applicable to individuals and HUFs. ITR 5 is applicable to firms including LLP,AOP, BOI, legal authority and artificial judicial person ITR 6 is applicable to companies, other than companies claiming exemption under section 11 ITR 7 is applicable to persons who are engaged in the business of charitable activities and are required to file their returns under section 139( 4A)to (4F) of the Act 

Additional disclosure and new columns

Jayesh Dadia, Chartered Accountant

(i) ITR 1 and 4 require the individual assessee to provide detailed calculations in case of salary and house property income. 

(ii) Individual tax payers who are filing income tax return in ITR 2 or 3 or 4 are not required to mention gender, i.e. male or female or transgender as the column of general has been removed. 

(iii) The new ITR form has introduced new column to report CGST, SGST, IGST and UTGST paid by, or refunded to assessee during the financial year. This has been introduced in view of enactment of the GST Act. 

(iv) Newcolumns in ITR forms 2 to 7 have been inserted which will enable the assessee to transfer the tax credit to other period. The new ITR form introduced new column in TDS schedule which will allow the Department to easily co-relate PAN, amount of income and TDS thereon as disclosed by both the parties in their respective returns. It would make convenient for the assessee to claim tax deducted in the name of other person. 

(v) In the case of capital gain arsing on transfer of unquoted shares, it would now be mandatory for the investors to obtain valuation report. The new ITR form 2, 3, 5, 6 and 7 require the tax payers to provide figure of actual sale consideration of FMV as determined by merchant banker or a CA. 

(vi) In the new ITR form 2, 3, 5, 6 & 7 every person has to report any receipt of sum which is taxable as gift under section 56(2)(x) of the Act. 

(vii) In ITR 6 a new schedule has been inserted which require every company, which is not required to get its accounts audited under section 44AB, to provide details in respect of transactions entered into during the financial year with registered or unregistered supplier under the GST. 

(viii) The new ITR form introduced specific column to report each capital gain exemption separately under section 54, 54B and 54EC etc. Further, a tax payer availing this capital gain exemption is required to mention the date of transfer of original capital asset. This was missing in the earlier ITR forms. 

(ix) Under the provisions of Section 40A(ia), certain expenditure is disallowed to the extent of 30% if tax is not deducted. A new column has been inserted in the ITR forms 2, 3, 5 , 6 & 7 to report such disallowance. 

(x) The new ITR form allows non-resident to furnish details of any one foreign bank account for the purpose of income tax refund. 

(xi) All businesses will have to submit Aadharnumber of their members, partners, etc. 

(xii) Under the new Sahaj form, i.e. ITR 1, specific details pertaining to salary require disclosure such as allowance that are not exempt, value of perquisite, profit in lieu of salary and deduction claimed under section 16. 

(xiii) Finance Act levies a new fee under section 234F for not furnishing the return of income on the due dates. A new row is added in all ITR forms to enable the assesseeto fill-up the details of late filing fees. 

(xiv) Every unlisted company has to provide details of beneficial owner who are holding 10% or more voting power at any time during the financial year along with name, address and PAN of the beneficial owner. New column has been inserted in ITR 6 

Conclusion

There are more than 25 changes in the new ITR forms. All these changes clearly suggest that the government is seeking more information from the tax payers. Further, the claim for expenses, deductions, exemptions would be given on the basis of information declared in the return. Thus,while filing the return, tax payers need to fill-up various additional information very carefully.