ITR FormsFY 2017-18

Confused about new ITR Forms for filing your return? Here is the list!

Newz On Tips
Wed Aug 01 2018 / By: Jigi Yadav

So, with the introduction of new budget by the government, there are several changes that have been made in the ITR forms for the return filing process for financial year 2017-18. We must tell you that all these forms are available for e-filing facility as well and can also be downloaded from the income tax department’s website. In this informative piece, we will tell you about the new ITR forms in detail.


ITR 1


  1. This form was valid for national residents, non-residents and residents not ordinarily residents (RNOR) before this year. But now, it is meant only for resident taxpayers in India.
  2. The income must be from salary, house property etc not more than Rs. 50 lakh.
  3. The salary breakup must be provided. Only Form 16 was needed earlier and there was no need to furnish your detailed income proof.
  4. You will have to furnish the TDS details according to Form 26QC. This is related to the TDS on rental income. You also need to provide the PAN of your tenant in this case.


ITR 2


  1. This is for non-residents and residents not ordinarily residents (RNOR).
  2. This will contain the details of income other than income from ‘Profits and Gains from Business or Profession’. Earlier, it was under Part B-TI which has been removed now.
  3. Likewise, ‘Income from Firm’ and income from a ‘Firm’s Partnership’ is also removed. In this case individuals or companies have to file ITR 3.
  4. Similarly, ‘Schedule AL- Interest held in the assets of a firm or association of persons as a partner or member’ is also removed.
  5. The TDS section under Form 26QC are the same as in ITR 1.


ITR 3


  1. This is a new ITR form specially meant for ‘Income from Profits and Gains from business and profession’.
  2. As a gift to NRIs who have now become Indian residents, a Section 115H has been added. It refers to a concession on tax rate on earned interest from their interest income. There are other clauses attached to it that need to be checked if you are eligible for it. The Section 115H is a amalgamation of Section 115C, D, E, F, G and I.
  3. Alterations have been done in Schedule PL that will show up GST details of the entity.
  4. Maximum depreciation is set to 40% in every Schedule which has to deal with it.


ITR 4


  1. With the implementation of GST, now, you have to furnish your GSTR No. and gross turnover receipts.
  2. Declaration of following details:
  • Members or Partners Capital assets
  • Secured Loan
  • Unsecured Loan
  • Advances
  • Fixed Assets
  • Total Capital and liabilities
  • Other liabilities etc.


Valid to all ITR Forms:


  1. The ITR filing process is the same. All individuals have to file through e-filing process (electronically). Only the taxpayers falling under ITR 1 or ITR 4 can file it a paper return.
  2. If you cross the deadline of filing your Income Tax return which is 31st August 2018, you would be fined under Section 234F which is a monetary fine up to Rs. 10,000. 
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Wed Jul 15 2020 / By: Rashmi

The largest part of India's taxpayer group is of salaried persons. They pay the highest amount of taxes that ultimately help in basic infrastructure like roads and provide good health services and education systems. But this transaction is not only one way. The government also says Thanks by giving them monetary relief.


They are exempted from a portion of the tax for different kinds which are called allowances. If a salaried person takes reimbursements from the employers, a large chunk of money will be saved by the end of the year.


An employer's salary is made up of many components. The total salary package of employers is called Cost to Company (CTC). While the money that gets credited into account is called in-hand salary, which is lower than this CTC. It happens because employers deduct various kinds of taxes imposed by the governed. While some of these taxes are fixed, a few can be reimbursed if employers’ claim for allowances.


Here's a list of major deductions and allowances given by the government:


1.    House rent allowance (HRA)

2.    Telephone reimbursement

3.    Books and periodicals allowance

4.    Meal coupons

5.    Interest on higher studies loan


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The name of these allowances is pretty explanatory. If an employee is living in a rental house, then he/she is eligible for HRA. The same logic applies to other allowances. What these allowances basically mean is that salaried people should get some relief on their basic needs of working like housing, traveling, reading, and eating.


The process of asking reimbursements of these allowances is very simple. Salaried people have to give bills for using these basic services and commodities.


For HRA, one needs to submit rent receipts including the PAN of the employer (PAN is compulsory if the rental payment is above INR 1 lakh annually). For books and periodicals allowance, one has to submit newspaper bills, bills of books, and magazines. The same rule applies to telephone reimbursement, meal coupons, and Interest on higher studies loans.


However, one allowance that deviates from the same logic is Standard Deduction. In the last budget, it was decided that a standard amount of Rs 50,000 would be deduced from IT for salaried employees. It actually replaced transport allowance and medical reimbursement.


These tax allowances may sound small to a middle-middle-class or a higher- middle-class person. But when all of these allowances are accrued, the sum money almost looks like a monthly saving that has accumulated after a year. Basically, if you get reimbursement for all these allowances, you'll start getting more money than your present in-hand salary.


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During Budget 2020, Finance Minister Nirmala Sitharaman had announced that a new Form 26AS will replace the older one. Now, a new Form 26AS has been released by the Income Tax Department, and it will contain more information than ever. The information embedded in the Form 26AS is very vital, but unfortunately, only a few know about it.


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In the older version of Form 26AS, only a few personal details were provided. like PAN number, full name, and address. While now, additional information like Phone Number and email address. The Income Tax Department now sends all the new information and notifications through emails and texts on the phone number. Till now, you may have ignored updating your phone number when changing the sim card but not anymore.


Apart from email address and phone number, the new Form 26AS now also includes your birthdate for unknown reasons.


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The new Form 26AS will have all the details of taxes that deducted by your company and collected by your bank. In addition to that, the details of advance tax or self-assessment tax will also be included in it.


If some tax filing is missing from your new Form 26AS, you can call your employer and bank in the court. This also works the other way around.


The outstanding demands will also be enlisted on the new Form 26AS. This will help you in knowing if the demand is really outstanding or should you raise a dispute on it.


Details About Taxes And Proceedings


In addition to that, your pending income tax proceedings will also be mentioned in the new Form 26AS. Both the taxpayer and the Income Tax Departement will have to go to just one single place to look up for all pending cases and their details. It's a win-win situation for both parties.


Until now, Form 26AS only had a few info included in it about your financial transactions. But from now on, various details like banks, listed companies, mutual funds, registrar, stock exchanges, etc. will also be included in the Form 26AS, as they were already available to the department.


If your transactions for credit cards, foreign exchange, shares, and bond purchases exceed a certain threshold, the details of all these transactions will also be written on Form 26AS.


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Amid the COVID-19 crisis, the Income Tax department has decided to revise its Income Tax Return (ITR) forms. The forms will be changed so that taxpayer citizens can get the benefits that the government has given as relief measures. 


The central finance ministry released an official note on Monday regarding the ITR form changes. It says that the government has given various timeline extensions to the citizens as a relief measure. But to fully avail it for the common people, the income tax department will revise the return forms for the financial year 2019-20 and the assessment year of 2020-21. The changes made will be notified to taxpayers by this month's end. 


The benefits given to taxpayers are for financial transactions made between April 1, 2020, to June 30, 2020. Financial world pundits are also speculating that the department will most likely extend the ITR filing deadline of July 31. 


Once the forms are changed, and the taxpayers notified, the department will also amend the software and return filing utility. All this procedure shall be completed before May 31. 


Talking to the media about this recent announcement, the director of Nangia Andersen Consulting, Mr. Shailesh Kumar, said that there is a small discrepancy in the time-period. While the taxpayers would have to make tax-saving investments by the end of June, the new ITR forms and utilities would be notified to taxpayers by the end of May. Hence there is lesser time for taxpayers to file the Income-tax return by July's end. To make sure every eligible person pays tax, the government will probably extend the ITR filing date. 


Almost every finance-related timelines and deadlines have been extended by the Finance Ministry, including the utilities of the Income Tax department and Reserve Bank of India. 


After announcing the Pan-India lockdown on March 25, the government ruled that the claims for payments that come under Section 80 C, 80D, and 80G (which includes Donations, Mediclaim and LIC, PPF, NSC, and mutual funds, etc.) are extended till the end of June. 


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The money that is earned legally and ethically is called white money, while the money that is earned by illegitimate methods is called black money. But, what if you don't know if the ways by which you are earning money is legitimate or not? What if the laws themselves are not showing your money's true colour; black or white? 


The 2020 budget has left grey areas over a number of monetary spaces. One of them is taxation for NRIs. 


In her budget speech, the union Finance Minister, Nirmala Sitharaman, said that the government is planning to crack down on people who are trying to create a loophole in the taxation system in the name of their residence status. But, after the speech caused great furore among NRIs, the government took a U-turn. 


In an official statement, the finance ministry said, "The new provision is not intended to include in tax net those Indian citizens who are bonafide workers in other countries. In some section of the media the new provision is being interpreted to create an impression that those Indians who are bonafide workers in other countries, including in Middle East, and who are not liable to tax in these countries will be taxed in India on the income that they have earned there. This interpretation is not correct."


So, who does exactly have to pay the 'NRI tax'?


Those persons who live in India for more than 120 days will now be deemed as Indian residents. Hence, if they have businesses in India, then the money earned by those businesses will come under the scrutiny of the Indian tax system. 


One thing to be noted here is that one has to pay taxes only for the local earnings and not the earnings made in any foreign country. The finance ministry clearly said so in the statement issued on February 02, "It is clarified that in case of an Indian citizen who becomes deemed resident of India under this proposed provision, income earned outside India by him shall not be taxed in India unless it is derived from an Indian business or profession."


Another loophole left:


It is not the case that 'NRIs' now can not exempt themselves from paying taxes to the Indian government. They can; if they care enough to read the budget thoroughly. According to the Indian 2020 budget, if an NRI lives abroad for more than 35 weeks or 145 days, one can not be taxed even for earnings made through Indian businesses. In other words, NRIs still don't have to pay taxes, it is just that the definition of an NRI has changed after the 2020 budget.