The income tax department has already notified the new tax return forms pertinent to the financial year 2017-18 in April this year. Some forms have already had their online utility tools published. A person who needs file an income return for the 2017-18 financial years has to do it by 31st July 2018. The deadline is not requisite for accounts which still need to be audited. Different kinds of tax assessments are applicable to different tax return forms. A wrong form can defect. Various factors come into consideration. The new forms facilitate the Finance Act, 2017 changes. The ITR forms are necessary for this.
ITR 1 Sahaj
A Resident and Ordinarily resident is eligible for this. They need salaries, one house property, other incomes, and total income up to Rs. 50 Lakh. It can be used for only a ROR-qualified person.
This time more requirements are needed to a break-up of salary parts with the exempted details claimed. Some may find this extra disclosure necessity a tad difficult, as the information is not properly there in Form 16 given by the employer. 2018’s ITR 1 form also makes it compulsory to furnish break up of income under the head income from house property.
It is for people and HUFs who don’t qualify for the ITR form ITR Sahaj, and also don’t have income under the head “Profits and Gains from Business or Profession”. Schedule relating to details/income from partnership firms have also been removed in this year’s ITR 2 form. Moreover, this means that anyone earning income from a partnership firm has to file ITR 3, and not ITR 2. Given that ITR 1 is not applicable for NORs and NRs anymore, ITR 2 will become the first suitable option for filing their return of income.
ITR 3 And ITR 4
ITR forms, ITR 3 is for individuals and HUFs with income from business or any other profession. The ITR 4 has been prescribed for individuals, HUFs. Also for partnership firms having “Income from business or profession” on a presumptive basis. Additional reporting requirement for quoting GSTR (Goods and Services Tax return) Number and turnover/gross receipts as per GST return filed has been included in the new form. Further, financial particulars of the business, where a taxpayer has to declare details like partners/ members’ capital, secured loans, unsecured loans, advances, fixed assets, etc. have also been incorporated.