Things you must know to file New ITR forms for AY 2018-19

Things you must know to file New ITR forms for AY 2018-19

With the government’s focus on e-assessments and making tax processing more efficient with the help of harnessing information technology, the new ITRs have been armed with collecting additional details. Taxpayers should keep in mind the following before filing the tax returns.

 

Tenant's PAN mandatory- The new ITR-2 form requires tax payers to furnish the PAN of the tenant while providing details of income from house property, if available. Till AY 2017-18, the same was optional. Tenants have to provide PAN details of landlord to claim HRA deductions. This will help Income Tax authorities to reconcile the PAN of the tenant and the landlord. PAN of the individual tenants paying more than Rs 50,000 rent has to be now quoted in the TDS schedule of the ITR filed by the landlord.

 

ITR-1 (Sahaj) only for Ordinary Resident - Form ITR-1 (Sahaj) can be filed by individual taxpayers who have Income from salaries, one house property, other sources (interest etc.) and whose income is less than Rs 50 lakh. This is a simplified form, but can be used only by an Ordinary Resident (OR) in India.

 

Additional Details - The new ITR-1 seeks additional details on 'Income from Salaries' and 'Income from House Property'. Tax payers would now be required to provide the complete breakup of salary, for example taxable allowances, value of perquisites, deduction for professional tax etc., and details of income from house property such as gross rent received, municipal taxes paid, interest payable etc.

 

Other forms - The new ITR-2 form can be used by individuals and Hindu Undivided Families (HUFs) who do not have any income from business or profession. Taxpayers with any kind of business or professional income including income from partnership, would now be required to file either form ITR-3 or ITR-4-Sugam, which require extensive details to be furnished. 

 

Penalty for belated ITR - As per the Finance Act 2017, taxpayers would need to pay a fee of Rs 5,000, if their tax return is filed after the due date (i.e., 31 July) and before 31 December of the subsequent FY. The late fee payable would be Rs 10,000 if the tax return is filed after 31 December of the subsequent FY. The new ITRs have appropriate space to capture this information wherever applicable.

 

Stringent verification- Verification in the new ITR forms require the person signing the tax return to declare in what capacity he is filing the tax return and whether he is competent to prepare the return and verify it.

Read More at The Economic Times News date : 16 Apr 2018, Monday

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