Income Tax Return (ITR) Forms for F.Y 2016-17 (A.Y. 2017-18)

No comments


Income Tax Return (ITR) Forms for F.Y 2016-17 (A.Y. 2017-18)

Income Tax Return (ITR) filing has always left individuals perplexed. It’s that time of the year when you need to go through documentation and reporting. Sources of income have to be identified, and incomes from each source need to be assessed. When it’s about seeking deductions, you have to browse all the tax-saving certificates. Filing of ITR form in itself consumes a lot of efforts. Overall things become quite taxing.

This year the Income Tax Department has uncomplicated the matters a bit for the assessees. It has come up with simpler one page ITR-1 Form (Sahaj). You can use it to file the return for Financial Year 2016-2017 (i.e. Assessment Year 2017-2018). It’s related to the income earned from 1st April 2016 to 31st March 2017. The last date of submission of ITR forms has been will be 31st July 2017.

Things to know about ITR-1 Form (Sahaj)

ITR-1 Form (Sahaj) can be used by individuals to file tax return whose total income doesn’t exceed Rs 50 lakh. You can file your income tax returns in a hassle-free and expedient manner. You need not attach any documents or TDS certificates with this form. The designing of one-page form is to enable easy compliance. This form is divided into five parts namely A, B, C, D, E and two schedules.
Part A seeks general information; Part B is about Gross Total Income, and Part-C is about deductions. Part-D is about the computation of tax payable, and Part-E requests other information. The schedules inquire about details of advance tax and TDS/TCS.

The Income Tax Department has made it mandatory to disclose your Aadhaar number in ITR forms. The mandate will be effective from 1 July 2017. Those assessees who don’t have an Aadhaar number have an option. They can enter Aadhaar Enrolment Id till the Aadhaar number is allotted.
Apart from this, you can give details of cash deposited during the demonetization period. If you deposited cash of Rs 2 lakh or more, you might report this in your ITR. You may also notice a new field under Schedule VI-A deductions. It relates to home loan interest under Section 80EE. Section 80EE provides a deduction on home loan interest to those who are buying home for the first time. This deduction is over and above the Rs. 2 lakhs limit covered under Section 24(b)).

Who can file return using ITR-1 Form (Sahaj)

ITR-1 Form (Sahaj) can be used by individuals whose total income constitutes the following:
1. Income from Salary or Pension
2. Income from one House property. It doesn’t include carry-forwarded losses from previous years.
3. Income from Other Sources.
ITR-1 Sahaj can be used to file the return where the income of spouse, minor child, etc. are being clubbed with assessee’s income. Such a clubbed income has to belong to one of the above categories.

Who cannot file return using ITR-1 Form (Sahaj)

ITR-1 Form (Sahaj) cannot be used by individuals whose total income constitutes the following:
1. Income from more than one house property
2. Income from horse races or winnings from lottery
3. Income taxable under Sec 115BBDA
4. Income falling in Sec 115BBE
5. Income from Capital Gains
6. Agricultural income exceeding Rs 5000
7. Income from business or profession
8. Losses falling under the head “Income from Other Sources.”
9. Persons who want to claim relief under Sec 90/91
10.A resident having any asset or signing authority in any account situated outside India.
11.Resident receiving income from any source which is located outside India.

How to file return using ITR-1 Sahaj

ITR can be filed with Income Tax Department in any of the following ways:
1. Furnish the return in a paper form.
Only the following assessees are allowed to file a return in paper format:
– Individuals who are 80 years or above at any time during the previous year; or
– Individuals whose income is less than Rs 5 lakh and who haven’t claimed any refunds in ITR.
2. Furnish the return electronically along with a digital signature.
3. Transmit the data of the return electronically under e-verification code.
4. Transmit the data of the return electronically. Then submit verification of return in Return Form ITR-V.


Other ITR forms

Apart from shortening ITR-1 Sahaj, CBDT has made changes in other forms as well. It has reduced forms from existing nine to seven. It has done away with the Old ITR-2, ITR-2A and ITR-3. These 3 forms have been merged into the New ITR-2. The Old ITR-4 has been renumbered as NEW ITR-3. The Old ITR-4S which is known as Sugam is now renumbered as NEW ITR-4(Sugam).

Things to know about ITR-2 Form

You need to use this form when your total income constitutes of:
1. Income from Salary/Pension
2. Income from more than one house property
3. Income from Capital Gains
4. Income from horse races or winnings from lottery
5. Income from any asset that is situated outside India
6. Agricultural income exceeding Rs 5000
ITR-2 can be used to file the return where the income of spouse, minor child, etc. are being clubbed with assessee’s income. Such a clubbed income has to belong to any of the above categories.
You cannot use this form to show income from business or profession.

Things to know about ITR-3 Form

CBDT has renamed the old ITR 4 as ITR3.
ITR 3 includes all the heads of income shown in ITR 2.
Additionally, this form is used to show income from the proprietary business. You may also file income earned by way of profession or as a partner in a firm.

Things to know about ITR-4S (Sugam) Form

You need to use this form when your total income constitutes of:
1. Business income computed according to Sec 44AD and 44AE of the Income Tax Act
2. Income from Profession that is computed according to Sec 44ADA
3. Income from a single house property
4. Income from “other sources”. It excludes income from horse races or winnings from lottery

Certain incomes do not form part of the ITR-4S as listed below:

1. Income from multiple house property
2. Income from horse races or winnings from lottery
3. Income taxable under Sec 115BBDA
4. Income falling in Sec 115BBE
5. Income from Capital Gains
6. Agricultural income exceeding Rs 5000
7. Income from speculative business
8. Persons who want to claim relief under Sec 90/91
9. A resident having any asset or signing authority in any account situated outside India.
10. Resident receiving income from any source which is located outside India.
11. Income by way of agency, commission or brokerage.

Keep visiting www.bimahelpline.com

Be Informed | Be Educated | Be Updated

No comments :

Post a Comment