The last date to file your income tax returns is nearing. As you prepare to file your returns you should know the changes that have been incorporated in the tax filing form by the Income Tax department in the returns forms for the current year. In case you do not comply with the new requirements you are at risk of getting a notice from the tax department.
“ITR Forms are notified every year by the Central Board of Direct Taxes (CBDT). At the beginning of the financial year, the CBDT has released new ITR Forms for the assessment year 2018-19. These ITR Forms will be applicable to file income-tax returns in respect of income earned during the period April 1, 2017, to March 31, 2018,” said Vikas Dahiya, Director, All India ITR.
While ITR 1 is to be used for salaried taxpayers, NRIs need to use Form ITR 2. Aarti Raote, director, Deloitte Haskins and Sells LLP said that while filing ITR 1 and 2 forms, which are specifically applicable for salaried taxpayers, there are some details that need to be additionally provided this year.
The most important change in ITR 1 is that it can only be used by ‘Residents’ having income from salaries, one house property and income from other sources, and where there is no treaty claim/ foreign assets; income is less than Rs 50 lakh. Individuals who qualify to be non-residents or residents but not ordinarily resident, cannot use ITR Form 1.
Raote further says “Information that is required additionally is the fee levy for belated tax returns (filed after July 31), tax withheld by the tenant on rental payments and details of exemption from capital gains. Further, in the light of the introduction of Section 50CA - cases where consideration on sale of unquoted shares is lower than fair market value (FMV) - the FMV for such shares determined in the prescribed manner, needs to be reported.”
Also, the taxpayers who are having foreign income would now need to provide tax treaty rates that have been availed by them. Thus, the taxpayer needs to be ready with detailed information to ensure complete disclosure in the tax return.
Here is a tabular comparison of new requirements in ITR forms compared to last year:
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