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At the onset of the new financial year, the Central Board of Direct tax has notified the income tax forms applicable for Financial Year 2016-2017 (i.e. Assessment Year 2017-2018). These ITR forms will be applicable for income earned for the period 1 April 2016 to 31 March 2017.
Income tax return forms (ITR-1/ ITR-4) can be filed in paper mode in case of individuals aged 80 years or more (at any time during the year) as well as individuals/Hindu Undivided Families (HUF) whose income does not exceed INR 500,000 with no refund claim in the return.
Major Changes in the ITR- Forms
Less number of ITR Forms
1. The number of ITR Forms have been reduced from 9 to 7.
Applicability of Form ITR-1 Sahaj
2. With the aim of making it easier for taxpayers to file annual income tax returns, a crisp one pager form, 'ITR-1 Sahaj' has been notified. ITR 1 Sahaj can be filed by tax payers having income under the following heads, totalling upto INR 50,00,000:
Inter alia, the form will not be eligible in case the tax payer has the following income:
Simplified one pager ITR Form. [ITR 1 Sahaj]
3. The following changes are made in the ITR form:
Disclosure of cash deposited during demonetization.
[ITR 1, 2, 3, 4, 5, 6, 7]
4. In order to track the amount deposited of INR 200,000 or moreduring the demonetization period (i.e. from 9 November, 2016 to 30 December, 2016), details of such amount deposited in bank account would need to be reported in the Income tax return form. The tax payer would be required to mention the IFSC Code, Name of the Bank, account number and the cash amount deposited.
[ITR 1, 2, 3, 4]
5. A new section (section 139AA of the Act) requires every person who are eligible to obtain Aadhaar number, to mandatorily quote the same in the return of income w.e.f. July 01, 2017. If any person does not have the Aadhaar Number but has applied for the Aadhaar card then he can quote Enrolment ID of Aadhaar application Form in the ITR.
Taxpayers are required to get their PAN linked with Aadhaarnumbesr. However, if a taxpayer fails to link the Aadhaar number, the PAN allotted to them shall be deemed to be invalid.
A person who has resided in India for a period amounting to 182 days or more in the twelve months immediately preceding the date of application for enrolment of Aadhaar, is eligible to obtain Aadhaar number as per the Aadhaar Act, 2016.
Deduction under section 80EE of the Act.
[ITR 2, 3, 4]
6. Section 80EE of the Act gives additional tax exemption of INR 50,000 for payment of interest on housing loan to first time home buyers. This deduction is over and above the INR 2 lakhs limit covered under Section 24(b) of the Act.
A new field has been provided in ITR forms under Chapter VI-A deductions to claim home loan interest under Section 80EE of the Act.
Detailed declaration of value of assets/liabilities by Individuals/HUF earning income above INR 5,000,000.
[ITR 2, 3, 4]
7. Last year the Income-tax department had introduced a new Schedule requiring individuals/HUFs to declare the cost of specified assets and liabilities if their total income exceeds INR 5,000,000.
Now, the tax payers are also required to disclose the following additional details:
For taxpayer having income upto INR 5,000,000, the ITR forms have been simplified. However, there are some additional disclosure requirement brought in for tax payer shaving income more than INR 5,000,000.