New Income Tax Return Forms – Gist of Changes introduced
The Central Board of Direct Taxes (CBDT) has released the new income tax return forms for filing returns for the financial year (FY) 2017-18 i.e. assessment year (AY) 2018-19 vide notification no. 16/2018 dated 03rd April 2018. The gist of the changes introduced in ITR by the CBDT is as under:
W.e.f. AY 2018-19, if assessee failed to furnish return of income within due date as prescribed under section 139(1) then as per section 234F, he will be required to pay fee of: –
a) 5000 if return is furnished on or before 31 December of assessment year.
b) 10,000 in any other case. However, if total income of the person does not exceed Rs. 5 lakhs then fee payable shall be Rs. 1000.
It is note worthy that this is the first time that there will be a penalty leviable for income tax returns filed after the due date which is normally July 31.
2. Form – 1 which is generally used by most of the assessee i.e. salaried employees, the following changes have been made:
a. The details relating to salary e.g. allowances, perquisites, profit in lieu of salary which are part of Form 16 have been mandated in the New Form.
b. The details related to house property e.g. gross rent, tax paid to local authorities, interest paid on borrowed capital etc. have also been made compulsory in the New Form.
c. Requirement of furnishing details of cash deposit made for the FY 16-17 has been done away with from FY 18-19.
d. A not ordinary resident cannot file its return in ITR Form – 1 for the FY 17-18.
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3. Form – 2 has been rationalized by providing that Individuals and HUFs having income under any head other than business or profession shall be eligible to file ITR Form-2. Earlier, this form can also be filed by a person who has income chargeable to income-tax under the head “Profits or gains of business or profession” is in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from a partnership firm.
4. In case of non-residents, the requirement of furnishing details of any one foreign Bank Account has been provided for the purpose of credit of refund.