• ITR Forms - FY 2017-18 (AY 2018-19)

    Which ITR form applies to you for financial year 2017-18?

    The Central Board of Direct Taxes (CBDT) has already notified the Income Tax Return (ITR) forms for the financial year 2017-18, i.e. for assessment year 2018-19. The ITR forms are different for different types of assessee. Before you find out which ITR form is applicable for you, you may want to take a quick look at the changes that have been implemented in the different ITR forms.

    Changes implemented in the Income Tax Return (ITR) forms for Assessment Year 2018-19:

    Presently, there are 7 different Income Tax Return (ITR) forms. They are as follows:

    1. ITR-1
    2. ITR-2
    3. ITR-3
    4. ITR-4
    5. ITR-5
    6. ITR-6
    7. ITR-7

    There are some changes which are specific to ITR-1, ITR-2, ITR-3, and ITR-4. The other changes are applicable to all the forms. The changes are as follows:

    1. ITR- 1:
      1. ITR- 1 is now applicable to resident individuals only. Previously, resident individuals, Resident but not Ordinary Resident individuals, and Non-residents were eligible to file this form.
      2. The total income of the resident individual should not exceed Rs.50 lakh. Source of income can be income from salaries, income from one house property, and other sources of income.
      3. Earlier, a detailed salary breakup used to appear only in Form 16 and was not required to be disclosed while filing the returns. Now it is compulsory to furnish a detailed salary break-up while filing an ITR.
      4. Now it is mandatory to furnish the breakup of Income under House Property in ITR- 1. Earlier it was meant to be furnished in the other forms only.
      5. The details of Tax Deducted at Source or TDS in accordance with Form 26QC for TDS made on rent have to be furnished under the Schedule on TDS. The form also has a field where the PAN of Tenant can be quoted.
    2. ITR- 2:
      1. The ITR- 2 is applicable to Resident but not Ordinary Resident (RNOR) and non-resident individuals.
      2. The ITR- 2 is applicable to Hindu Undivided Family (HUF) and individuals having income sources other than income from Profits and Gains from Business or Profession.
      3. The Profits and Gains from Business or Profession field has been removed from the Part B - TI.
      4. Individuals who are earning income from partnership firms can no longer file their income tax returns under ITR- 2 as the Schedule-IF and Schedule-BP have been removed.
      5. The field applicable to Interest held in the assets of a firm or association of persons (AOP) as a partner or member thereof, under Schedule AL, has been removed.
      6. The details of Tax Deducted at Source or TDS in accordance with Form 26QC for TDS made on rent have to be furnished under the Schedule on TDS. The form also has a field where the PAN of Tenant can be quoted.
    3. ITR- 3:
      1. ITR- 3 is applicable to Hindu Undivided Family (HUF) and individuals having Income from Profits and Gains from Business or Profession.
      2. A field has been added under General Information in regards to Section 115H. This field is relevant to the benefits that are being availed by the taxpayer even after they become a resident individual.
      3. Details related to GST can be furnished in the fields which have been modified under Schedule PL.
      4. The maximum depreciation in all depreciation-related schedules has been restricted to 40%.
    4. ITR- 4:
      1. It is required to furnish the details under GSTR No. and Turnover/Gross receipt as per the GST return filed.
      2. The following fields have been added under the Financial Particular of the Business field:
        1. Partners/Members own Capital
        2. Secured Loans
        3. Unsecured Loans
        4. Advances
        5. Fixed Assets
    5. Changes applicable to all the forms:
      1. The details of cash deposits for a specified period are not required to be furnished anymore.
      2. A penalty will be charged in case of delay in filing the returns. A new field has been added to feed details of the fees payable under Section 234F.
    Which ITR is meant for which group of income?

    The following list will give you a brief idea about the allocation of people from different income groups into the respective ITRs.

    ITR- 1: Income: Income of less than Rs.50 lakh Source of Income:

    • Salary or Pension
    • One House Property
    • Other sources

    ITR- 2: Income: Income more than Rs.50 lakh Source of Income:

    • Salary or Pension
    • One House Property
    • Capital Gains
    • Income from partnership firm
    • Foreign income
    • Income from agriculture amounting to more than Rs.5,000
    • Other sources

    ITR- 3: Income: Income more than Rs.50 lakh Source of Income:

    • Salary or Pension
    • One House Property
    • Capital Gains
    • Income from partnership firm
    • Foreign income
    • Income from agriculture amounting to more than Rs.5,000
    • Income from Business or Profession
    • Other sources

    ITR- 4: Income: Tentative income from business -

    • Under Section 44AD
    • Under Section 44ADA
    • Under Section 44AE

    ITR- 5: ITR- 5 is applicable to the following:

    • Firms
    • Association of Persons or AOPs
    • Body of Individuals or BOIs
    • Limited Liability Partnership or LLPs

    ITR- 6: The companies that do not claim exemptions under Section 11 are eligible for ITR- 6 form.

    ITR- 7: The ITR- 7 is applicable to individuals and companies who fall under one of the following

    • Section 139 (4A)
    • Section 139 (4B)
    • Section 139 (4C)
    • Section 139 4(D)

    The following table shows the applicability and non-applicability of the ITRs:

    Forms Applicable to Not applicable to
    ITR- 1 or Sahaj
    • Individuals who qualify as Residents and Ordinary Residents (ROR)
    • Total income consisting of the following:
      • Salary or Pension
      • One House Property (excluding the cases where losses are carried forward from previous year)
      • Other sources (other than winnings from lottery and maintaining race horses)
    • Individuals whose total income is more than Rs.50 lakh
    • Total income consisting of:
      • Income from more than one House Property
      • Income from winning a lottery or income from race horses
      • Capital Gains
      • Dividend income of more than Rs.10 lakh received from domestic companies
      • Cash credits, investments, etc. which are not explained
      • Loss under the head ‘Income from other sources’
      • Apportionment of income under the Portuguese Civil Code
      • Agricultural income exceeding R.5,000
      • Income from Foreign Sources
      • Income arising from Business or Profession
      • Claims for relief on payment of foreign tax
      • Reporting of foreign assets
    ITR- 2 Individuals or Hindu Undivided Family (HUF) -
    • Who is not eligible to ITR- 1 or Sahaj
    • Who does not have any income from Business or Profession
    Individuals whose total income includes income from Business or Profession
    ITR- 3 Individuals or Hindu Undivided Family (HUF) drawing income from Business or Profession Individuals or Hindu Undivided Family (HUF) not drawing income from Business or Profession
    ITR- 4 or Sugam Individual or Hindu Undivided Family (HUF) or Partnership Firm who has:
    • Presumptive business income
    • Income from Salary or Pension
    • Income from One House Property (excluding the cases where losses are carried forward from previous year)
    • Income from other sources (other than winnings from lottery and maintaining race horses)
    Individual or Hindu Undivided Family (HUF) or Partnership Firm whose total income consists of any of the following:
    • Income from more than one House Property
    • Income from winning a lottery or income from race horses
    • Capital Gains
    • Dividend income of more than Rs.10 lakh received from domestic companies
    • Cash credits, investments, etc. which are not explained
    • Loss under the head ‘Income from other sources’
    • Apportionment of income under the Portuguese Civil Code
    • Agricultural income exceeding R.5,000
    • Income from Foreign Sources
    • Income arising from Business or Profession
    • Claims for relief on payment of foreign tax
    • Reporting of foreign assets

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