The Modi government is now linking all taxpayers under Income Tax and GST. Details filed in GST returns are also to be reflected in Income Tax Returns. Whatever GST details are given in ITR forms will be cross checked by the Income Tax Department. Hence, taxpayers should start reconciling GST Returns and Books of Accounts and then proceed with ITR filings. There have been many changes in the content of the ITR’s which are mentioned here.
Income Tax return ITR-1 Sahaj is continued by the CBDT for Fiscal year 2017-18 vide notification no. 16/2016 dated 03rd April 2018. But there have been prominent changes made in the ITR 1 which should be noted.
1. Who can file ITR 1? This year (AY 2018-19 FY 2017-18) only an Individual who is “resident and ordinary resident” can file this return.
2. Resident Individual who has income to be apportioned in accordance with provisions of Section 5A (governed by Portuguese Civil Code) are not eligible to file this return.
3. Individual who has to carry forward the loss under the head ‘Income from house property’ is not eligible to file this return.
4. Incomes under the head ‘Salary’ are to be shown in full detail as per Form 16 in contrast to how only the net figure of income was reported under the head previously.
5. Similarly for Incomes under ‘House Property’, more details are required than what was previously reported.
6. Amount of late fees under newly introduced section 234F which is payable in case of late filing of ITR.
7. Earlier if the agriculture income was more than Rs 5,000 then the taxpayer needed to file ITR-3. Now the limit has been removed i.e even if the income of the taxpayer is more than Rs 5,000 then he can file ITR-1.
Significant changes in other ITR’s are:
1.In ITR-4 filed by taxpayers opting for presumptive taxation, taxpayers now need to provide their GSTIN and turnover that has been reported in the GST return filed by them.
2. Earlier in ITR-4, only 4 financial figures were required i.e details of Cash, Stock, Debtors, Creditors but now, taxpayers need to provide the complete balance sheet.
3. In ITR-6 the companies who are not liable for tax audit need to provide the breakup of the following-
a) Expenditure with entities registered in GST but the goods and services are exempt from GST.
b) Expenditure with entities under GST composition scheme.
c) Expenditure with other entities registered in GST.
d) Total payment to entities registered in GST.
e) Expenditures with entities not registered under GST.
4. Previously, Individuals and HUF’s who had income from profits and gains from business or profession could file ITR-2 but now they need to file ITR-3. The change is that ITR-3 requires details of balance sheet and profit and loss account which is not required in ITR-2.
5. In ITR 3,5,6,7 where balance sheet and profit and loss account need to be given in ITR, bifurcation of CGST, SGST, IGST and UTGST on Sales, Purchases etc. needs to be given.
6. From the Financial Year 2017-18 late fees will be charged if the return is not filed within due date. The late fees of non-filing of return of Income Tax is Rs 1000 if Income does not exceed Rs 5,00,000 and Rs 5,000 if Income exceeds Rs 5,00,000, if not filed before 31th Rs 10,000 if the return is filed after 31stDecember.
7. Details of gift received from non-related parties without adequate consideration is now required to be shown by those taxpayer to whom ITR 2,5,6,7 are applicable.