New Form & Changes in Income Tax Return

ashish.kapoor@asija.in
Presented by:
CA Ashish Kapoor

Contents
1) ITR Forms for the AY 2018-19
2) Importance for CORRECT filing of ITR
3) Changes in law which lead to change in ITR
4) Specific Changes – ITR wise

ITR 3
(AY 2017-18)
For Individuals and HUFs having income from proprietary business
or profession.
ITR 3
(AY 2018-19)
For Individuals and HUFs having income from profits and gains of
business or profession
ITR Forms Applicability
ITR 1 - (SAHAJ)
(AY 2017-18)
Individuals having income from salary, one house property and other
sources. Having total income upto Rs. 50 lakh.
ITR 1 - (SAHAJ)
(AY 2018-19)
Individuals being resident other than not ordinarily resident
having income from salary, one house property and other sources.
Having total income upto Rs. 50 lakh.
ITR 2
(AY 2017-18)
Individuals and HUFs not carrying on business or profession under
any proprietorship.
ITR 2
(AY 2018-19)
Individuals and HUFs not having income from profits and gains of
business or profession.

ITR Forms Applicability
ITR 4(Sugam)
(AY 2017-18) & (AY 2018-19)
For person having presumptive Income from business and
profession
ITR 5
(AY 2017-18) & (AY 2018-19)
For person other than (i) individual, (ii) HUF, (iii) company
and (iv) person filling form ITR-7
ITR 6
(AY 2017-18) & (AY 2018-19)
For the Companies other than companies claiming exemption
under section 11
ITR 7
(AY 2017-18) & (AY 2018-19)
For the person including companies required to furnish
return under sections 139(4A), 139(4B), 139(4C), 139(4D),
139(4E), 139(4F)

2) Importance for CORRECT filing of ITR
On filing an incorrect income tax return, the assessee may receive any one of the following
notices :-
 Notice u/s 139(9)- Defective Return – A response may be submitted within 15 days in
the absence of which the return shall be treated as ‘Invalid’ leading to penalties and
litigations.
 Intimation u/s 143(1)- May lead to wrong processing of return and infructuous demands
may arise, leading to filing of 154 application and litigations.
 Scrutiny u/s 143(2) or 148
 Penalty u/s 270A Under reporting / mis-reporting of income may lead to penalty
amounting to 50% / 200% of the tax on under-reported income.
 Prosecution u/s 277 – Furnish of False information
a) Where tax sought to be evaded exceeds ₹ 25,00,000/- Impressment for a term of 6
months to 7 years and fine.
b) In other case Impressment for a term of 3 months to 2 years and fine.

3) Changes in Law
Which lead to
Changes in ITR

Impact of Finance Act 2017 on ITRs
 Section 234F : Fee for default in furnishing Return of Income.
In ALL the ITR’s (1 To 7) under the head ‘Computation of tax liability on total
income’ an additional column has been inserted for entering the fee under 234F.
 Section 194IB : Payment of rent by certain Individuals or HUFs
In ALL the ITR’s (1 To 7) in order to claim credit of such TDS, a amendment has been
done under the head ‘Tax Payment - Schedule of TDS’, to capture details of TDS
deducted by the Tenant.
We need to furnish PAN of the Tenant.
 Section 115BBG : Taxes on income from transfer of carbon credit.
Section 115BBG provides that any income from transfer of carbon credit shall be
taxable at the concessional rate @ 10 %.
A new column related to this in Schedule OS (Income from other sources) and
Schedule SI (Income chargeable to tax at special rate)
Applicable to ITR 2, 3, 5, 6, 7 .

 Section 56(2)(x) : Income form Other Source
 The scope of Section 56(2)(vii) was applicable to an individual or HUF but the scope of
the said section has been extended by Section 56(2)(x) which covers all taxpayers within
its ambit.
 Applicable to ITR 2, 3, 5, 6 and 7.
 In the Schedule OS (Income from other sources) following have been added:
Income of nature referred in section 56(2)(x) which chargeable to tax :
a) Aggregate value of money received without considerations.
b) Immovable property without consideration - stamp duty value
c) Immovable property for inadequate consideration - stamp duty value of in excess of
such consideration
d) Any other property without considerations - FMV of such property.
e) Any other property for inadequate considerations – FMV in excess of consideration.

 Section 50CA : Capital gains in case of transfer of unquoted shares
 Applicable to ITR 2, 3, 5, 6 and 7
 Following column have been added in schedule CG (Capital Gains):
1) In case of securities sold including share of company other than quoted shares,
enter the following details:
a) Full value of consideration receivable in respect of unquoted shares.
b) Fair market value of quoted shares determined in prescribed manner.
c) Full value of considerations in respect of unquoted shares adopted as per
section 50CA (higher of a or b).
2) Full value of considerations in respect of securities other than quoted shares.
 Applicable to ITR 2, 3, 5, 6 and

Impact of Other Amendments on ITRs
 Capital gains exemption to be furnished in detail
 Applicable to ITR 2, 3, 5 and 6
 Reporting of Deduction u/s under Sections 54, 54B, 54EC, 54EE, 54F, 54GB and 115F
were being reported in a single schedule

Capital gains exemption to be furnished in detail
 Now for each section a different reporting column has been inserted in Schedule CG –
Point 9 – Part D.

Revised Depreciation Schedule.
 Applicable to ITR 3, 5 and 6
 Replaced the depreciation column of 50/60/80/100 per cent with 40 per cent in case
of plant and machinery, and building.
 New columns have also been inserted to enable the entities to claim proportionate
depreciation in the event of business reorganisation, i.e. demerger, amalgamation etc.
 Further, a field is added to disclose the disallowance to be made in respect of
depreciation under section 38(2) if an asset is not exclusively used for business
purpose.

 Rule 37BA – Allocation of TDS assessable in the hand of a person other than deductee
Applicable to ITR 3, 5 and 6
Following columns has been added in schedule of TDS in ITRs
For Assessment Year 2017-18
For Assessment Year 2018-19

 Section 43B(g) : Sum Payable to Indian Railway for the use of railway assets – Allowable
on actual payment – Added in Other information – Tax Audit case reporting. Applicable
to ITR 3,5 & 6.
 Individual taxpayers who are filing income tax return in Form ITR 2, 3 or 4 are not
required to mention the gender (i.e. male, female or transgender) as the column of gender
has been removed
 The new ITR forms allow non-residents to furnish details of any one foreign bank
account for the purpose of payment of income tax refund. Applicable to ITR 2,3,4, 5 ,6
& 7)
 Additional column have been added for section 58 and section 59,in Schedule OS
(Income from other sources) applicable to ITR 3,5,6&7.
 Cash deposited during period 9.11.2016 to 30.12.2016 have been deleted from all ITRS.

4) Specific Changes –
ITR wise

Changes in ITR- 1
 Amendments
 AY 2017-18 - In part B - Gross Total Income :-
• Gross income from Salary / Pension and Gross income from One House Property
was to be reported.
 AY 2018-19 , - In part B - Gross Total Income under the head
 Salary / Pension, break up has to be provided, comprising of
 Salary (excluding item listed below)
 allowances not exempt,
 value of perquisites,
 Profit in lieu of salary
 Deduction u/s 16.
 House Property, break up has to be provided, comprising of
 Gross rent received /
 Tax paid to local authority
 Annual Value,
 30% of annual Value
 Interest payable on borrowed capital. ashish.kapoor@asija.in

Changes in ITR- 1
The said changes in breakup of head Salary and House Property are also applicable
to ITR 4.
Deletions
As the ITR – 1 is now of for Individuals being resident other than not ordinarily
resident, thus Residential status column in part A General Information have been
deleted.

Changes in ITR- 2
Since ITR 2 is applicable to Individuals and HUFs not having income from profits and
gains of business or profession.
This has lead to Deletions of the following schedules in ITR 2
 Part B – TI – Computation of Income – Income from PGBP
 Schedule IF - Information regarding partnership firm in which you are partner
 Schedule BP - Details of income from firm of which partner.
 Schedule CYLA – Details of Income after Set off of current year losses – Column of
Business loss
 Schedule BFLA (Brought forward losses)- Row of Income from Business or profession
 Schedule CFL (Carry Forward of Losses)- Column of Business or Profession loss
 Schedule AL – Assets & Liability at the end of the year – Section C - Interest held in
the assets of a firm /AOP as partner or member thereof.
 Addition
 In General information Tab, an option to select section 115H has been added.
 Also applicable for ITR - 3 ashish.kapoor@asija.in

Changes in ITR- 3
 Addition
 Due to introduction of GST – In Part A – P&L following have been added in
 In Revenue from Operations – Row C – Duties, taxes received in respect goods /
service sold following has been added
o Central goods and service tax
o State goods and service tax
o Integrated goods and service tax
o Union territory goods and service tax
 Similar addition has been made with respect
o Duties and taxes paid with respect to purchase
o Rate and taxes paid to government
 Deletions
 Schedule BP – Computation of Income - Deduction under section 35AC have been
deleted . (Same is applicable to ITR 5 and ITR 6).

Changes in ITR- 3
 Amendment
 AY 2017-18 -Only impact of ICDS on the profits (whether negative or positive) was
reported in Part A of OI (other information).
 AY 2018-19 - Separate reporting of both profit and loss (and not on net basis) in
Schedule OI, Schedule BP (Computation of income from business or profession and
Schedule ICDS.
 This amendment is also applicable for ITR 5 & 6

Changes in ITR- 4
Addition
In Schedule BP following tab is added related to GST :
Amendments
In Assessment Year 2017-18 in Schedule BP under tab financial particulars following
were reported:

Changes in ITR- 4
In Assessment Year 2018-19 following are reported:

Changes in ITR- 5
All changes of ITR – 5 have already been covered in
Previous Slides.

Changes in ITR 6
Additions
 Ownership Information has been added in PARTA –GEN
 For Companies who draw their Financial Statement in Compliance to Ind AS will
have to furnish the Balance sheet is Part A–BS-Ind As and not at Part A-BS and Profit
& Loss in Part A–P&L-Ind As and not at Part A-P&L.
 In schedule MAT , assessee is required to specify the additions and deductions made in
the book profit due to application of Ind As on the company.

 Additions
 Schedule FD – Break-up of payment /receipts in foreign currency (applicable to assessee
who is not liable to get its accounts audited under Section 44AB)
 Schedule GST – Break-up of payment /receipts in foreign currency (applicable to assessee
who is not liable to get its accounts audited under Section 44AB).
 New column has been added in Part A - P&L to provide details of apportionment made by
the companies for the CSR activities and in Part A – OL other information disallowance u/s
37 with respect to CSR expense incurred have been added.
Changes in ITR 6

Changes in ITR 7
Additions
In Schedule LA Political parties following additions are made:

Changes in ITR 7
 In Part A Gen Personal Information in Details of the project /institutions run by you
following changes have been made :
Assessment Year 2017-18
Assessment Year 2018-19

Changes in ITR 7
 Section 12A(1)(a) - Reporting of Change in Objects and approval, subsequent to
previous approval u/s 12AA
 Changes in Part B TI Statement of Income for the period ended.
Assessment Year 2017-18PDF 1.
Assessment Year 2018-19PDF 2.

Disclaimer
 This presentation is prepared by our firm to provide a gist of the applicable changes in
income tax returns in the Financial Year 2017-18
 For the detailed insight and for the better understanding of various provision of the said
law the said presentation should be read along with related provision of the Income tax
Act, 1961 and Income Tax Rules 1962.
 Neither our firm nor any partner or an employee or an article of our firm shall be
responsible for any decision taken on the basis of said presentation and without obtaining
any professional guidance or consultation of the matter for which reliance was made on
the presentation .

New Form & Changes in Income Tax Return

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