key changes in the new Income Tax return forms | New ITR forms

The Income Tax department has rationalised some fields in the ITR forms and is seeking additional information from taxpayers in a bid to check tax evasion..

The Central Board of Direct Taxes yesterday announced new Income Tax return (ITR) forms for the assessment year 2018-2019. The new ITR forms want salaried individuals to provide details of their salary break-up while businessmen need to provide their GST number and the turnover.

According to the Income Tax department, some fields in the ITRs have been "rationalised", referring to the additional information sought from the taxpayers in a bid to check tax evasion. Many fear that the process of filing Income Tax returns could become more cumbersome.

What are the new Income Tax return filing rules:

1. The ITR Form-1, commonly called Sahaj, can be filed by an individual with an income of up to Rs 50 lakh. Sahaj is the ITR form that most salaried individuals fill up. The new Sahaj form seeks salary details in separate fields and in a break-up format as available in Form 16. Taxpayers will have to provide details on allowances that are not exempt, value of perquisites, profit in lieu of salary and deductions claimed under Section 16.
2. Non-Resident Indians (NRIs), who were using the Sahaj forms to file their returns, will now have to use ITR Form-2 to file their returns as per the new rules.
3. The ITR Form-2 has also been "rationalised" by providing that individuals and HUFs (Hindu Undivided Families) having income under any head other than business or profession shall be eligible to fill up this tax return form.
4. Under the ITR-4, tax payers who have presumptive income from business and profession will now have to furnish their GST registration number and its turnover.
5. The Income Tax department has "done away with" the column that sought details on cash deposits made post demonetisation last year. The new ITR form for assessment year 2018-2019 will not ask for these details.

New ITR forms Rules

The new ITR forms for 2018-19 notified Thursday make it mandatory for small businesses to specify their GSTIN and turnover under GST

In the new ITR form, taxpayers will have to give details about allowances that are not exempt, value of perquisites, profit in lieu of salary and deductions claimed under Section 16.

The forms give non-resident Indians (NRIs) some relief. They can now provide details of their foreign bank accounts to claim credit or refunds. Earlier, they could only provide details of bank accounts held in India.

However, NRIs will no longer be able to file returns using the simple income tax return (ITR)-1 form, which can now only be used by residents. NRIs will have to use ITR-2, which seeks more information.

The new ITR forms notified for assessment year 2018-19 require salaried taxpayers to disclose their salary break-up. Taxpayers will have to give details about allowances that are not exempt, value of perquisites, profit in lieu of salary and deductions claimed under Section 16. Typically, these are available in the Form 16 issued by the employer but do not have to be disclosed in the tax return.

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